Foreclosures continue to plague many of America's communities. This presents an incredible buying opportunity for real estate investors. There has never been a better time to invest in real estate.
It looks like you're a little late if you're interested in buying this foreclosed home. Bank-owned homes are being demolished faster than investors can snap them up in some parts of the Midwest.
Look for a few dozen more bank-owned homes in Los Angeles to hit the market in the very near future. This week the Los Angeles City Attorney’s office filed a lawsuit against Deutsche Bank for the handling of its REO properties. According to a press release, “Deutsche Bank has become one of the largest slumlords in the city of Los Angeles,” the city attorney’s office said.
Real estate investors are snapping up foreclosed homes as investments and quickly reselling them at a handsome profit, in what many are calling the return of the flipper. While many real property investors buying foreclosed homes and bank-owned houses choose to hang on to their investment foreclosures and collect rental income on the properties, some are choosing to quickly resell the homes at a healthy profit.
According to a new report issued by Furman Center for Real Estate and Urban Policy at New York University, the number of landlords receiving foreclosure notices on their apartment buildings has risen dramatically over the past couple of years. Last year 661 privately-owned multi-unit buildings with five or more dwelling units were served with foreclosure notices. In 2009 a record 720 landlords received foreclosure notices (the highest number on record prior to that was 666 in 1994)
Real estate investors in the Western United States must be butter, because they are on a roll! Big time. According to MDA DataQuick, well over half of Nevada homes sold in February were paid for with cold, hard cash. 57% percent of home buyers declined to utilize a mortgage to buy a home, choosing instead to treat the seller to an all-cash sale. That figure is the highest number ever recorded.
By some estimates, in excess of one million more homes are expected to be repossessed by the nation’s leading mortgage lenders this year. More than half of these foreclosed homes and bank-owned properties will be located in the states hardest-hit by the foreclosure crisis: Arizona, Nevada, California and Florida.
Nearly one-quarter of all mortgaged homes were worth less than the amount owed to the lender at the end of 2010. 23.1 percent of all mortgaged homes were “underwater” in the fourth quarter of last year, which equates to more than 11 million houses total, and an increase of 300,000 homes from the previous quarter.
There have never been more foreclosed investment properties and REO homes on the market in the United States than there are right now. According to some estimates, the nation’s largest mortgage lenders are expected to repossess upwards of one million homes in 2011. This glut of new foreclosures hitting the market, which typically sell for a discount of more than 20% versus non-foreclosure properties, will serve to keep prices at attractive levels for investors.
When building a balanced financial portfolio, serious investors nearly always choose to invest in real estate as a portion of their holdings. Over the past couple of decades real property investments have become common vehicles for investors at all levels.
ForeclosedIncomeProperties.com, a subsidiary of www.OnlineLoans.com, is your online portal for foreclosed commercial properties, REO investment opportunities, HUD foreclosures, and bank-owned homes. As part of a nationwide database, our range covers the entire continental United States, with updated information daily. Be the first to get the latest on property investment foreclosures in your area and around the country.
