How do you as a new investor take advantage of the current number of foreclosures and purchase a bank-owned or REO property? As the number of foreclosures continues to rise, more and more distressed properties will be available for investors who are prepared to buy these properties. Of course, the most obvious method for purchasing one of these properties is to spend cash, lots of cash. Then hold these properties as rentals, receiving a positive monthly cash flow until the market turns around and then sell off for a profit to new home owners.
As we start the new year of 2011, it promises to be more of the same. The economy is still sluggish, unemployment remains high, and foreclosures rates are continuing to climb. The retirement accounts people have been counting on for years are now evaporating under the added strain of bad economic conditions, increased taxes and government intervention and a general malaise of the public towards the future.