subject: Real Estate Investing Despite the Wave of Foreclosures [print this page] Real Estate Investing Despite the Wave of Foreclosures
Is real estate investing possible in a market that's flooded with foreclosures? Is it a viable business when market experts expect more tsunamis of foreclosed homes in the future? Perhaps some real estate investors have gone crazy; or they probably are too optimistic. It is also possible that they know something that you don't. Get a peek at the minds of real estate investors who continue to thrive in today's foreclosures-laden market.
Investing in real estate today is considered a dreadful business by wary experts. And why not? It means there's a surplus in the supply of available houses. It also means property prices are not that good. These two things may sound negative. But if you listen and think hard enough, you'll hear that these two things are actually music to the ears.
In real estate investing, the common philosophy if to "buy low and sell high." Today's market conditions will allow you to buy properties at very low prices and sell at relatively high prices. This is made possible by the presence of foreclosed homes. Take note that these are properties repossessed by banks from home buyers. Banks, however, are more than willing to sell these houses at very low prices. Why? Due to their swollen number, banks can no longer maintain them. Maintenance will only result in more losses for lenders, who have already lost so much when the home buyers defaulted on mortgages.
Are banks willing to sell these houses to people who are investing in real estate? Yes. Lenders cannot be to selective nowadays. Besides, real estate investors are usually "cash buyers." Would a lender choose a high-maintenance property, dubbed aptly as a "non-performing asset" in financial lingo, over cash? It's like choosing between a can of pork and beans and a medium rare porterhouse served with ice-cold beer in front of an NBA championship match. Banks see the disposal of such properties a better choice than keeping and maintaining them.
Apart from foreclosures, what makes real estate investing attractive today is the presence of REI education online. Unlike before when the only way to learn was to become a student of a seasoned investor for years, investors of today have more choices. They can go online and watch videos or read articles about the real estate topic of their choice. And since it is online, it is also more convenient and so much cheaper.
Just make sure that the website you subscribe to is updated and accurate. Visit only websites that are already established and deemed authorities in real estate. For a glimpse of such website, visit REIWired.com right now.
