Finding a foreclosure can sometimes be a sweet deal or a money pit. Please be careful if your interested in buying a foreclosure for the first time. Novice investors can be quick to make hasty decisions, which may lead to buying a bad investment. I can't say this enough. DUE DILIGENCE! As a novice investor, its recommended that you partner with a savvy investor, talk to a real estate consultant, or hire a knowledgeable agent whose familiar with the foreclosure market.
TIP: The best way to find a steal is to work directly with the asset manager at the bank before the property is even released to the public.
At the moment, Atlanta has one of the highest foreclosure markets in the U.S.
Is this GOOD or BAD?
Well, I would say it depends on which side of the fence your on.
In the past, the term foreclosure was a forbidden word. It was an embarrassing and shameful situation for most. In today's market, houses are foreclosing at an astronomical rate. People are losing their dream homes, which is still a very embarrassing ordeal, but there are more options available. At one point, apartment communities were in demand. Today, more private owners have made decisions to lease their homes, which have left apartment communities struggling to reach full capacity and forced to offer ongoing move-in specials.
The single family home will always be in demand, unlike apartments. They offer privacy; yards, parking, storage and the neighbors don’t have to know if they are owners or renters. Renters want to have the same lifestyle as homeowners.
As a result of the high number of foreclosures in Atlanta, this has allowed investors to purchase homes .25$ on $1.00. If your looking to invest, incredible profits will be made in Atlanta in the next 10 years. For the younger and middle age investor with time in their favor, building your portfolio now can be an integral part of your future success.
It has been proven, with actual examples, that if leveraged correctly, a portfolio can grow substantially in as little as 10 years. One of the benefits is that this portfolio can grow itself. With normal appreciation after several years the homes can be refinanced, then the money from equity can be used to purchase more homes or retain all your cash and the tenant still makes the mortgage payment.
So, you tell me is it GOOD or BAD?