Foreclosures or real-estate-owned properties widely-known as REO's which are in the possession of the lender as a result of forfeiture.
Some entrepreneurs think that they can easily scout for several REO's and sell them wholesale to convert them to sure profit.
But wait, there is a lot more challenge at stake than deciding so.
Of course, if you plan to do this, you must have the buying power to be able to acquire a portfolio to get your hands on the wholesale purchase discount.
As more and more people flock to Florida, more and more realtors too are pushing them to foreclosures and into accepting offers of legit brokers from a Multiple List Service.
They simply give you a long list or a suite of services that brokers offer to enable them to establish a contractual compensation system.
You may think that most realtors then sell these REO's for a higher price but you see, most realtors are also prey to a struggling real estate market and so most often, they sell them at an even lower cost.
Some realtors opt to sell them at a higher price but most buyers see through the higher price based on the quality of investment they are getting, thus making a completion of sale even longer.
And so, they go back to offering a lower price, catching both the sure buyers and potential buyers who are keeping an eye on good real estate buys.
It is very important that we be sensitive to the progressive moves of the real estate market.
This leads most analysts to predict that there will be an impending occurrence of adjustable rates for the rest of 2009.
Most home owners think that they are at the losing end due to a rising number of foreclosures, forgetting the fact that is in this best season when we can have the opportunity to start investing in the market.
As long as we do not give up in fiding realtors who are willing to push the price down even lower for sure profit, then patience will surely be rewarded with a sure property investment.
After all, properties never depreciate, they just appreciate over time.
If you have no use yet for any property you have invested on, be assured that like wine, its taste gets better over time.
To give you a clearer picture, let's say a property sells for $115,000 and a lease in place ready for $1,000 monthly.
I will definitely close a contract for it and lower the selling price by deducting 10% off it, this makes the selling price still a lucrative profit and all I shelled out is the overhead expense, in this case, lease for $1,000 monthly.
Even if I do this in 5 years, this investment will still give me a fairly significant amount of profit.