Miss Advice

The U.S. is still in the middle of one of the worst recessions in the history of America that was fueled primarily by a huge bubble in real estate investing, but for other reasons also.

Make sure that the underlying real estate investment is sound and the potential for profit is large enough to make it a good investment by doing your homework before jumping into something.

The majority of homeowners who find themselves in a foreclosure type situation don’t realize that there are a myriad of options and programs designed to help them stay in their home.

Though there are loan modification scams going on, there are also many companies and organizations that legitimately want to help you in this foreclosure process.

Home owners who bought their homes near the peak of the real estate bubble are eagerly awaiting the news that the market has hit bottom and values are beginning to increase.

You can go up to your local county courthouse and find a list of properties that are in the process of foreclosure simply by looking on the court roll call.

Having an attorney, real estate agent, or “guru” to assist you construct the offer and paperwork will make it easier.

You can find a home, for example, that is worth about $200,000 in which the owner is behind on a mortgage where he only owes about $120,000, then you can offer to purchase the home for $130,000 and give the owner $10,000 as a down and let them live there and rent it back from you.

As with any education, time spent learning about real estate will bring its own rewards, especially if the people in your life understand your goals and your plan to achieve them.

You can then ask for the $200,000 when the market rebounds, and you will have just made $70,000 profit in a few years, a much better yield than you can ever make in any other type of investment.

As real estate values moved higher and higher, lenders expanded the use of subprime loans, adding enticing features that made home ownership possible for people who could not qualify for a regular loan.

This entry was posted on Sunday, March 21st, 2010 at 2:24 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.