Yeah, I’ll bet that title caught your eye! But it’s absolutely true. Consider this:
- There were 2.8 million foreclosures in 2009, according to Realty Trac, the foreclosure sales web site.
- There’s no sign that things are slowing down in 2010, and this trend will continue well into 2011, according to most forecasters.
What does this mean for you and me? Opportunity, and tons of it! Yes, now is the time when fortunes can be made. Homeowners are losing their homes all over this country, and where are they going? Into rental properties. Apartment rental vacancies are down. Investors like me are having no trouble filling their rental homes, particularly if they’re three or more bedrooms, perfect for a family.
So, if you have a little extra cash to invest (cash is king, of course) or if you have a good relationship with a bank, now is the time to invest in a nice rental property. I just bought the home in the picture below. It’s on a cul-de-sac, in a decent neighborhood/school district, and there were seven other offers on the table along with mine, so I had to put in my highest and best offer. I purchased this house, knowing I’d need to put about $5000 into it. But I also know, through zillow.com, that I bought it for about 1/3 of what the houses around it are worth. Here’s the house:
It needs a little sprucing up, inside and out. It was a foreclosure, and I guess the homeowners decided to take whatever they could, which included all the kitchen cabinets, bath sinks and vanities, the hot water heater…at least they left the toilets. The carpets smelled terrible. I think they had three or four dogs, according to the nieghbors. This is the kitchen:
I should be done with it in a couple weeks. Although I couldn’t flip this house (gee, I wonder what happened to that show? It certainly isn’t timely anymore…..flipping is impossible in this environment) it will be a wonderful rental. I’ll get a nice family in it, and probably make over 10% return on my investment each year. I get that percent on all my rentals…….where can you get that kind of consistency in the stock market??
Although now isn’t the time to make a quick buck, now is the time when fortunes can be made. Buy a home for long term investment, fix it up and rent it out, if you have the wherewithal to be a landlord. You’ll make nice income while you own the house, and you’ll be building wealth while you’re earning that income. When the real estate market recovers, you may decide to sell……take the money and run……or buy more rentals! What a sweet deal, huh?