Jan 23, 2010
Real Estate: Hot Properties In A Cool Market
Real estate investors spend the majority of their time in search of “hot” properties. In today’s cool real estate market, locating profitable properties might seem impossible. However, there is still plenty of money to be made in the real estate investment game.
In the past, hot real estate properties consisted of homes with oceanfront or mountain views. Recently, house flipping has been portrayed as the ultimate money-maker for investors motivated to renovate distressed properties.
Foreclosure homes and bank owned real estate can oftentimes be purchased significantly under market value. Investing time, money and physical labor in repairs and renovations can result in huge profits, if you know what you are doing.
Homes and condominiums located in gated and golf communities are another source of hot real estate properties. As more Baby Boomers reach the age of retirement, they are seeking second homes either for retirement or vacation purposes. Many of them are opting to purchase real estate in activity-based communities geared toward retirees.
One of the lesser known, but exceptionally “hot” real estate markets is that of sustainable living communities. Also referred to as “green” or “enviro-friendly” real estate, sustainable living homes are manufactured from recycled materials and powered by alternative energy sources such as windmills and solar panels.
Many sustainable living communities are self-contained cities or towns. Retail and grocery stores, recreational facilities, post offices and schools are located within the community. The majority of sustainable living communities have their own local government, police and fire stations, hospitals and medical facilities.
Investing in sustainable living real estate offers the potential for substantial profit. Not only is environmentally-friendly real estate expected to significantly appreciate within the next five to ten years, there are currently many tax credits available to investors who purchase energy-efficient homes. These properties make excellent rental properties and tend to attract tenants who are financially responsible.
Commercial real estate and land can be quite lucrative investments. Investing in vacant office buildings, retail outlets and land can yield a tidy profit if you take time to conduct research to analyze future market trends.
The U.S. Government offers numerous tax incentives on commercial properties; particularly if they are developed to bring new jobs to the area. This type of real estate transaction requires extensive knowledge; therefore it is advised to work with knowledgeable advisors who can guide you through the process.
Last, but not least, one of the hottest real estate market investments is that of purchasing distressed properties sold through private investors. A little known secret is to seek out private real estate investors who purchase bank-owned foreclosure property portfolios.
Investors who purchase bank portfolios in bulk are able to purchase houses and other distressed properties at wholesale prices. Depending on the condition and location of bank owned foreclosures, investors can sometimes purchase them for as little as 30-cents on the dollar. However, these deals are rare. Instead, the average cost if closer to 70-cents on the dollar.
When investors purchase in bulk they are eager to pass their savings along to interested buyers. In order to obtain these low-ball prices, most investors require buyers to have cash-in-hand at the time they make an offer. This allows buyers to close the deal in a matter of days instead of weeks. The buyer can then renovate the foreclosure real estate and resell quickly. In some cases, a buyer can make 30- to 40-percent profit within 90 days or less.
Although the real estate market is currently cool, there are plenty of hot deals to be found in real estate investing. However, you need to frequently research and review real estate market trends if you want to stay on top of the game. The more you know about how the real estate market works, the better off you will be when it comes time to buy or sell.
Watch the video related to property foreclosure
A typical day selling personal property from a foreclosed home in So. California over 150000 homes in foreclosure many contained abandoned furniture and personal property. #1 Auction Team in So. California We currently conduct over 1000 auctions per year. 34 years experience. Dan and Laura Dotson American Auctioneers (800) 838 SOLD (7653)www.americanauctioneers.com
Help answer the question about property foreclosure
How to make an offer to a Freddie Mac Foreclosure property?
I would like to know how does the foreclosure process work for a Freddie Mac property? How low of an offer could you present to this agency?
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Receive free real estate investment tips from Simon Volkov, a private investor who specializes in foreclosed, bank”>http://www.simonvolkov.com/articles/2008/02/does-reo-really-mean-real-estate-owned-b.html”>bank owned, probate and distressed real estate properties. His expertise in real estate investing is far above the rest. For more information visit www.SimonVolkov.com.
Foreclosure information is directly available from the government. Check your local bankruptcy court and banks that have properties in foreclosure.
I am a realtor in Santa Clarita, CA and would love to assist you with this purchase. I work very heavily with pre-foreclosure and foreclosure sales, and have contacts in almost all 50 states, so I could probably get you to someone in most any area if you are not in CA.
You need a US social security number to get a loan. But if you pay cash you can buy anything you want. You could even borrow the money in Canada as long as you showed up with cash in USA.
You can buy directly from the bank at their foreclosure "auction". It is not a real auction because no one shows up. It is just a formality. The bank enters a bid for the amount they were owed by the previous owner (their borrower). They often tack on late fees and attorney fees. You have beat their bid to win and it is seldom worth the amount of the loan. But you could try. In the last 2 months, banks have started accepting lower offers. The sales are advertised in one local paper in the city of the foreclosure. You have to read all the papers to find the one. You don't get to see the inside of the house you are buying and you don't even get a key.
After that "auction", the bank hires a realty agent and a For Sale sign goes up. YOu can find those homes online at sites like realtor.com, realestateabc.com, trulia.com ( i don't work for any of them). Or ask any friendly agent to email a daily list of repo's. Then you buy one just like buying any other house. Except that the bank will do no repairs for you.
who ever buys the property isn't buying the debt. they just buy the property. the debt has to be dealt with prior to the sale. bankruptcy can sometimes wipe out a line of credit or second mortgage look at the bankruptcy discharge paperwork to be sure. good luck
Foreclosures for Freddie Macs are handled nearly identically to those for mortgages held by private lenders. All Freddie Mac foreclosures are handled by licensed real estate brokerage firms. Simply contact the listing agent who is handling the property in which you are interested.
Prices for Freddie Mac's are similar to those of other comparable properties on the market.
you need to know usually they are an as is sale, and there could be lots of damage. You need to have it inspected, which you will have to pay, as usually a foreclosed property will not supply an inspector. Also you need to make sure ALL liens are cleared off the property, because its foreclosed, some liens follow the property and not the person. Make sure the taxes are not too far behind. Some times they are great deal, but sometimes there are things that will bite you in the butt…Just do your homework, I am sure there are sights that give you a list of must before buying a foreclosed home! Good luck!
It happens with regularity. Not long ago, we had a FHA removed from listing for a similar situation. FHA discovered that it did not have clear title to the property and immediately removed it from the market.
You need to understand just how large Freddie Mac is, and the variety of departments involved in disposing of their REO inventories. Now and then, the marketing department releases a property for listing before the legal department has cleared title.
That depends on the purchase offer negotiated between you and the seller, your loan financing and other variables.