You are probably wondering where real estate investors are finding the best real estate investments in 2013. Why there are some
offers from independent third parties to buy properties that are or maybe
subject to foreclosure, bankruptcy, properties in probate, etc. You want to
know if there is real money involved in the same, either because you are
curious or you want to get into the same business. Below are a few reasons why the
best real estate investments are legitimate and money making enterprises.
Sellers in Need
In most cases the homeowner needs to sell
the real estate property in order to prevent the foreclosure of the same. The
faster the better. Probate Leads are easy to come by and offer quick sales. This is because the longer the homeowner waits the higher
the interests and penalties that get compounded. Not to mention the lower the
credit rating goes.
As such the homeowner is willing to sell at a bargain. Those who have enough capital to invest either buy these properties for personal real estate investing or for their own use. However, some enterprising individuals have banded together to get their hands on more properties solely investment purposes.
Why Real Estate Investing?
As a general rule, no other type of
property holds its value, has a chance of appreciating, and is sought after by
the general public, much like real estate. This is regardless of the real
estate meltdown of 2008. In fact the meltdown is viewed by most experts as a
corrective market measure against illicit real estate selling practices by
lenders.
Warren Buffet himself has said on several
occasions that real estate investing on distressed properties is sound. In fact
other economic titans have shared this view. It is only that the logistics of
purchasing and managing distressed properties that make it impossible for the
billionaire crowd to get in on the action, and not for lack of trying. In other
words for investment giants to start buying up distressed houses they would
need to invest heavily in the logistics and the management. As of the moment
they are still trying to get around this problem.
But for the time being individual buyers
and small to medium scale real estate investing firms are chomping up on the
choicest distressed properties. One such effort is coming from the houses in
Probate sector.
Once in a Lifetime Opportunity
This sharp decline of home values may not come
again, at least within this lifetime. This is because the stigma on poor home
loan purchases is so great, that this is probably the gone are the days when
buyers do not read the fine print. Gone are the days when homebuyers do not
verify their long term financial capacity. And the wholesale and leveraging of
home loans are heavily regulated by the government and the media.
Rallying Cry
Don’t Let your lender/mortgagor have their
cake and eat it too! Think about it, cash for keys and allowing foreclosure to
take place means you have just paid substantial penalties and interests on a
property that will revert to the same lender or mortgagor that failed to help
you keep your home. They will tell you they are being generous, giving you cash
for keys, but they are still going to collect on your arrears!
Summary
As you can see, the best real estate
investments are distresses properties. Real estate investors have been making
the best returns there. With no end in sight, real estate investors will have
plenty to choose from till the year 2015.
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