Look for deals. Come in with knowledge and experience and turn a profit…often there is more risk involved with these types of ventures but more reward if you are knowledgeable—know what you’re looking for.
Today, with a number of sub prime lenders in trouble, there will be a lot of foreclosures. See if you can come in and buy a property at a reduced rate and also help someone out, so they don't have to default on their loan and ruin their credit.
"According to the Mortgage Bankers Association's National Delinquency Survey released on Tuesday, 4.95 percent of mortgage loans were delinquent in the last quarter of 2006. That's an increase from 4.67 percent of loans delinquent from July through September. And compared to a year ago, the delinquency rates increased as well. Then, 4.7 percent of home loan payments nationwide were late.
In particular, subprime borrowers continued to have difficulties making their loan payments. Over 13.3 percent of subprime loans were delinquent, compared to 11.6 percent a year earlier." Read more...
- Foreclosures
- REOs (bank owned)
- Auctions
- Foreclosure speculators
- Estate sales
- Behind on payments and lost value in property (bubble burst—in over their head); can’t pay mortgage and the home has dropped in value (equity)
It's a good idea to re-visit this quote, stressing that there's opportunities in all types of markets:
"You simply adapt your strategy and techniques to whatever new market conditions are emerging. Savvy real estate investors ignore the media chatter about bubbles and peaks, hard times, and depressed markets. Intstead, they work the available opportunities--no matter what type of market they face."
-Gary W. Eldred
|
