By: Jarad Severe
Some might ask, why invest in foreclosures? You have to have money, a good job, and good credit, right? It is so saturated out there with investors, there is no way I will find a foreclosure, right? First let’s get rid of all these fallacies, and focus on why you will love investing in foreclosures.
The beauty of foreclosures and real estate in general, is that you do not have to have money, a good job, or even good credit to start investing. Don’t get me wrong, it is easier to structure deals if you have money, however, real estate is a very creative business. So creative in fact that you can structure your deals “nothing down” or no money out of your pocket and anyone who tells you differently probably does not know much about investing. I would like to encourage you, even if you have money, to structure your deals with “No Money Down”. This doesn’t mean no money is required when purchasing properties, it means you will be using other methods of getting money, other than your own, to purchase these properties.
There are huge profit margins in foreclosures. You can purchase properties anywhere from 20 – 40% under market value. This is what makes foreclosures so attractive, because you can still sell the property to a buyer under market value and make a substantial profit.
At the time of this writing, interest rates are among the lowest they have ever been since the 1960’s allowing many individuals to qualify for a loan. This is great for you as the investor, because you need buyers looking for great deals.
On the flip side of that, one reason for the low interest rate is because there have been a tremendous amount of economic hardships. People are losing their jobs and forced into foreclosure. Therefore, foreclosures are at an all time high right now, and there are plenty of them to go around for everyone. You just need a little knowledge on where to find them and a strong desire.
Even though at the time of this writing foreclosures are at an all time high, it seems that the foreclosure market is one that will always be around. Even when times are good, and the economy is flourishing, there will still be homeowners who fall behind on their payments forcing them to look for a way out. History shows foreclosures have been around many years ago, and will continue for many years to come.
Finally, one of the best reasons to invest in foreclosures is because it can give you the freedom to do what you want, when you want, with whomever you want. You are your own boss. You can spend as much or as little time as you want and there is no cap on your income. You can choose to quit your job or if you enjoy what you are doing, this could be another source of income for you. If you have a spouse that works, he or she can invest with you full time. If you have a family, this can free up your time to spend with them, and even give you the lifestyle you've always wanted.
