With most markets flooded with foreclosures, many investors have tried very hard to cash in on bank owned properties and REOs, only to come up empty handed. As you'll discover on this week's investing report, there's money to be made in foreclosures but you have to be looking in the right places. You'll learn where to find the great foreclosures deals in this current ocean of not-so-good bank owned REO deals.
Fishing and Real Estate Investing
In my opinion, there are a lot of similarities between fishing and real estate investing. It's about having the right line, lures, equipment, and weather. Most importantly, its about being in the right place at the right time. There are a lot of places where you could be fishing that don't have any fish!
With real estate investing, especially foreclosures where the bank already owns the property, I see so many people spending too much time making local offers on listed REOs and foreclosures. That is what I like consider fishing in an area with no fish. There are too many real estate investors out that that are fishing in the wrong spots!
Where Should You Be Fishing for Foreclosures?
#1. Any Foreclosures and REOs that are unlisted.
Foreclosure properties that are not listed with a real estate agent are a great place to be "fishing". Usually local or smaller banks will do this.
#2. States with right of redemption.
States that allow right of redemption means that the home owner has the right to "redeem" or buy the property back after foreclosure.
#3. Foreclosure properties that have been listed for a long time.
When foreclosures are on the market for a long period of time, banks are more anxious and flexible to accept a low ball offer from a buyer.
These tips show the absolute importance of fishing in the right spot and how amazing the payoff can be when you do so! You've got to invest in the right places. This will give you so much more freedom, peace of mind, and money!
Also, I came across a FABULOUS article on the amount of Shadow Inventory on the horizon for our residential real estate market. This author has done an outstanding job of compiling the most accurate data available to create a very real picture of what's happening out there and where things are going. Take the time to read this exceptional piece: