Flipping
Flipping Property during the Housing Crisis
By
Apr 18, 2012, 17:56

It may be true that flipping properties and qualifying for loans has just become much more difficult. However, as Real Estate Investors, a lot of good has come out of the housing crisis also!

Tremendous Bargains!

One person’s pain (Foreclosure) is another person’s gain! Buying a property that is either being sold through a Short Sale Process or by Foreclosure can be a wonderful opportunity.

And the Short Sale seems to offer the best opportunities for the Real Estate Investor. Because Short Sales take so long to get approved, most “regular Buyers” are avoiding them. Unless a Buyer is in a situation where he or she can wait for several months to receive an answer to an offer and accept the fact that there are so many unknowns, then a Short Sale is not going to work for them.

However, Investors can wait and try for these good deals. Lenders typically will accept a lower price on a Short Sale than on a Foreclosure because they will have more money invested in a Foreclosure … and more time. To lenders, time is money! They will have less carrying charges if they can accept a Short Sale offer. They also have a better chance that the property is still being taken care of by the current owner.

Patience is the biggest key when it comes to Short Sales. If you have patience, you may be handsomely rewarded with a great investment!

More Tenants

The housing crisis and recession have left many families heartbroken, scared and soon to be homeless.

This can be a win/win situation! The real estate investor has a wonderful opportunity to help put families back into homes and help secure their own future and retirement in the process. We just love win/win situations!

We have all heard the staggering figures of how many foreclosures have taken place and the projections of how many more are still on the horizon. It’s phenomenal! As a real estate investor, your eyes should be lighting up with excitement!

This means that there is a huge opportunity in front of you and you need to grasp it!

Most of the folks who have gone through the foreclosure or short sale process are not going to be able to purchase a home for many years. But they still need to find a place to live, and many people do not want to live in apartments!

The majority are good, honest, hard-working people who found themselves in a bad situation or perhaps had a job loss. As long as they can demonstrate that they can make the payments, and you perform a detailed background check, you will find most people are good tenants.

However, becoming a landlord is not something that you should just jump into either!