Tampa, Sept 2011-- According to RealtyTrac, the 2009 U.S. Foreclosure Market Report that came out early in 2009 shows that February 2009 foreclosure numbers were up nearly 30% higher than the year before. This same report showed that one in every 440 homes in the US received a foreclosure filing in February. Nevada is the king when it comes to the number of foreclosures in the nation, followed closely by Arizona. But virtually no area in the nation can say it has been untouched by this phenomenon.
These are sobering figures, but what does it mean for someone who is in the real estate investing business? It means that opportunities are there, but caution is needed.
There is concern that the websites and infomercials that lure real estate investing wannabes into the business can be quite misleading. First of all, yes there are millions of homes either in pre-foreclosure or are REO (owned by the lenders – “Real Estate Owned”). But that doesn’t mean these are ripe fruit hanging there for the picking. And it especially doesn’t mean that an inexperienced person can step in and make a killing in a few weeks.
Most new investors aren’t really clear on the difference between pre-foreclosure and REOs, nor how to work the deals in either. The bottom line is disillusionment and discouragement.
Words of wisdom for any investor is to learn as much as possible about all that is involved in purchasing foreclosed properties, whether pre-foreclosure or REOs, to understand the differences.
If you work with pre-foreclosures, you will be involved with families who are in great turmoil. Additionally, deadlines are something you will face as the foreclosure date is ever looming. On the plus side, you may get a break on financing as the owner (the lender) may work with you to finance the new deal.
On the REO side, many investors find that working with the very busy loss mitigators can be a challenge. And if the lender has already renovated the property, there’s little chance you will find a bargain – they will be selling at close to full price. And getting the property before it has been fixed up can be tricky. And the paperwork required for a short sale can also be a hoop-jumping fiasco. That said, this is the route that many seasoned investors prefer. Especially after the basics of the system are learned and understood. Those statistics can spell success for those who are diligent.
In spite of any negatives it boils down to being informed and having a good knowledge of what all is involved either way. If an investor goes into the field with knowledge and a smidgen of wisdom great profits can be made, and made on a regular basis!
Contact Information:
Phillip Woolery
Tampa Bay Florida
bmbhusa@gmail.com
BigManBuysHouses.com
