While searching through some foreclosure and FSBO (For Sale By Owner) listings at the best foreclosure government auction site a few days ago, I was amazed at the consistency of how low some of the prices on houses and properties are. Many of these homes are in decent to great shape and are located in good areas of the country.
What is amazing is that for the price of a good used car you could actually buy a house. We all know which is a better investment, so why not change your car oil more often to get a few more years out of it and use that money to buy a rental property. Now you’re probably thinking ‘just try to get a mortgage or loan these days’. Well when prices are this low then the risk is low as well, not to mention current lenders are under extreme pressures to reduce housing foreclosure inventories so they will be more then eager to discuss a good deal with you.
As for the real estate crises and housing price declines, well there is no doubt that we are in a real estate crisis, however, I’m hearing many experts say that we are either at the real estate bottom or will be, within the next six months. The thing about a market housing bottom is that you don’t know when you have hit it until a year to two afterwards and by that time the deals will not be as plentiful. This combined with the government providing the banks with basically unlimited liquidity has made this perhaps the best time in our lifetime in which to invest in real estate. You may know the saying “be fearful when everyone else is greedy, and greedy when everyone is fearful”, well it’s time to get greedy.
Here are examples of some of the listings I came across from the government auction site that I previously mentioned. This site is ranked as the number one site on my government auctions review site and the reason for that is simply because they have more government auction types, dates, locations and more property listings then any other site. Without further a due:
* 4 Bedroom Home in Marion, Indiana for $2,500
* nice 4 Bedroom Home in Bay City Michigan for $9,000
* 3 bedroom home in Pittsburg PA for $11,000
* 5 Bedroom home in Peekskill NY (near New York City) for $3,000
Yes these houses are for real and in good shape. You can see actual pictures of these and many other great deals on my site (link in last paragraph). Also before you bid or buy any property have a house inspector look over the house as thoroughly as possible. A local inspector or realtor would be familiar with the current area and approximate potential worth of the property. With their help, you can make a decision as to what work, if any, would have to be factored in and whether the property is a good investment. Obviously if you can get a house for under $10,000 it leaves a little extra cash for any work that may need to be done before you move in or renting it out. A realtor can also help to guide you in the buying process of foreclosed and FSBO homes.
Whether buying a foreclosure, pre-foreclosure or FSBO property, you should also conduct a background check. Some properties may have a history of liens or may be levied off to another party.
The foreclosure list mentioned here is just a sample of the many distressed properties that are available in all states. Following the trend in foreclosed properties is a good way on working towards your dream home. Remember it’s time to get greedy, how that everyone is fearful, so you can resell the house later when everyone else is feeling greedy.