Given the recent rise in foreclosure activity in the USA, how can one profit from these foreclosures?


Question:
What are some ways an investor can profit during this time of foreclosure acitvity? Should I buy a house at auction then "flip" it? What are the banks and lenders doing with the houses and how can one get involved? N.B. I am a licensed building contractor in CA.

Answer:
It takes a little savvy to do it right. I highly suggest you look at flipping in the longer term since the market has changed. Instead of looking to immediately flip houses, I suggest you keep each house to rent until the market changes. Your rental income can be used to finance future purchases and by the time the market changes you will be in a position to liquidate everything and retire!
You can buy a house for taxes past due at auction. I have seen houses up for a couple hundred dollars to a couple thousand. At any rate a tax foreclosure is the best way around making big chunks of money.
Since bankruptcy sales are about getting rid of property and goods in order to settle debts quickly, the prices will be rock-bottom.

So naturally, a large profit can be made by going to such sales and re-selling the property/goods at the normal price.

Go to the nearest foreclosure/bankruptcy auction house.
a smart investor can make big $$$$$$$
Don't fool yourself like so many others that the foreclosure market offers low priced homes. Most of the time the homes will be sold for what is currently owed plus legal fees, etc. (not so cheap). I have NEVER seen homes sold for hundreds of dollars, I can only assume, that if they are selling that cheaply, that is what they are worth. Many people think they can buy a houses and "flip" it. W/loans there is always title seasoning issues. Do your homework. It is not as easy as it seems. With big money, comes big risk and a lot of hard work. Good luck
Don't miss out on what many people are doing to save up to 80% off your new home. Many listings available in this area! Now is the time to buy!

http://govntforeclosures.blogspot.com...
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