Who doesn't want to have wealth? The simple truth is many people will miss the opportunity to build wealth in their lifetime. Why? Fear. The simple secret to building wealth is timing. Opportunity combined with timing is what affords the population at large equal opportunity.
The sad truth is.. most people will not take advantage of it. Basically it amounts to two things. Either recognizing that the timing is right and taking the opportunity when it is available or being fearful and making excuses.
WHAT SEPARATES THOSE WHO SUCCEED FROM THOSE WHO FAIL
There ae always 100 reasons NOT to do something. Successful people are by nature risk takers with one thing in common. They are risk takers who do their homework and thereby decrease the risk and increase their chances of succeeding. This applies universally to almost everything. Particularly in Real Estate.
WHEN IS THE RISK OF BUYING A FORECLOSURE TOO HIGH?
It is no secret that Real Estate on average has performed well since 1929; achieving on average a 6.5% annual return. The anomoly that occured in 2006 was just that- an anomoly. The gains realized in 2005-2006 depended entirely on a conbination of influences. Primarily the lack of housing at that time specifically in Osceola County, my market.
There is inherit risk in all investments- however when does the risk exceed the potential gain? When the timing is off. Foreclosures are quite abundant. In fact, they are everywhere. But does that make them a sound investment? No, not really.
Homes build between 2004-2007 used imported dry wall from China here in the sunshine state. After the hurricanes (Charlie, Francis and Jeanne) which caused over a billion dollars in damages, vendors supplies were strained and builders and contractors sought out cheaper products. Imports from China are now causing serious concern.
Many of these homes are now in foreclosure. You could in theory, be getting a "bigger problem than you bargained for" Overall most foreclosed properties are in need of repair. Most buyers fail to realize that the price is predicated on the condition. Not only the Market condition, but the condition of the home as well.
These newly uncovered issues arising from the Chinese Drywall will certainly be a factor in the overall repair costs and replacement may become an insurmountable deterent. Having said that, foreclosures certainly are not for everyone.
THE MORE THE MERRIER? NOT. 
Foreclosures like weeds, they pop up everywhere. The more highly they are concentrated, the more distressed an area becomes, and it drives the market value of the properties surrounding them down equally. This causes an excellerated depreciation on homes.
If there is one foreclosed property it can have an impact of 5% of decreased value affecting the other homes on the block- in areas where there are multiple homes in foreclosure, that decline is accelerated to 15%-20% depreciated value. Areas in Poinciana have an abnrmally high rate of foreclosed properties. Thereby decreasing the value of homes not in foreclosure which suffer as a result of their proximity.
Home buyers should look carefully at location, condition and the condition of neighboring properties as well, as part of the process of determining if the market declines are at higher risk for jeopardizing their investment.
There is no question that buying a home is a smart move, particularly with such attractive mortgage rates and availability of well priced homes. The timing is right for building wealth over time. The people who are cleaning up on the best deals have recognized this. Are you one of them?
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