In this post Alexis McGee explains why this is the perfect storm and how this is one of the greatest opportunities to flip houses in our life time.
Real Estate Investors Flip Feast
By Alexis McGee
Since the credit freeze began many buyers are unable to get conventional loans and sellers are forced to lowering their prices to rock bottom. The inventory of homes nationwide is over 9 months, buyers having the edge in most markets, and many are wondering when their market will turn around. That is, except for real estate investors prepared to take advantage of this once in a lifetime opportunity.
This is a perfect storm.
Investors have been waiting for years to see a market like this one, and are taking part in a virtual flip-fest in most parts of the country. The amount of available bank-owned properties is at all time highs. These conditions have produced the ideal buying environment. It seems the planets have lined up perfectly for these investors, as many are making deals and flipping homes as fast as they can hand out offers.
Traditional real estate investors are not the only ones benefiting from the current housing situation. Many people from the stock market are now coming over to the real estate game. These former stock investors get together and pool large sums of money to form Private Funding entities, and are providing short-term funding for many real estate investors who primarily flip homes.
It’s a marriage made in heaven.
Private funding works particularly well for these transactions. The finder investor simply enters into contract with the seller for a set purchase price, and then resells it to someone else at a higher price. Since this is actually one transaction, there is no need for a double closing at your title company. You the finder investor walk away with the difference. And you get paid when the seller gets paid. It’s completely legal, ethical and in most cases provides a much-needed relief for the seller.
Everyone leaves happy.
Flipping homes is fast becoming the norm again for many savvy investors. They have little at stake in the deal, and can make a considerable amount of profit on a single transaction. Depending on the price-range of home, it can be from a few thousand dollars to as much as 5-figures or more. Not bad for a few hours of work.
Considering how many homes that will sell for 50 cents on the dollar, and the predicted amount of foreclosed homes that will be entering the market this year, it appears the “flip feast” will continue for many fortunate investors for some time to come.
Until banks stop requiring borrowers to come up with ridiculous down payments, as well as lighten up on their credit score minimums, the only sub-prime source for borrowers will be these very same Private Funding Groups.
On April 1st the Obama Stimulus Plan changed the housing market for real estate investors.
Keep up-to-date with current changes in the financial, real estate and foreclosure markets and the ever changing Federal stimulus plans… and how they affect YOU the foreclosure buyer and seller in my monthly
FREE New Foreclosure Investor Webinar and Conference Call.
* Don’t miss Alexis Live via Teleconference, Toll Free on Wednesday, September 30, 2009.
* Gain Practical Step-by-Step “What to do and How to do” Foreclosure Investing Instructions.
* Enroll in our Interactive Hands-On Investor Tutoring by Alexis and her Proteges.
* Hire your own Foreclosure Investor Personal Coach
Kick Start Your Foreclosure Investing
Copyright © 2009 Foreclosures.com.
This article is available for free distribution under the following terms:
a) You may not edit, delete or add any content to this article.
b) You must maintain all links to Foreclosures.com.
c) This article must be distributed free of charge.
d) This Resource Box must stay intact.
P.S
If your serious about investing in real estate and learning how to flip properties then check out the resources at Foreclosures.com.
Hans Anderson
