The real estate market has been forever changed by the foreclosure crisis and bank repossessed homes are now a hot commodity. Unless you have been living under a rock, you will have read about or heard about the fact that the sale of bank repossessed homes has been on the rise even as the economy begins to recover.
One statistic making the rounds is that bank repossessed homes accounted for approximately 28 percent of all homes sold last year. The foreclosure crisis has been a huge shot in the arm for investors that are armed with cash. These investors are a relatively small pool of buyers but they are buying large quantities of below market value homes that are available in their areas.
Investors can use a couple of different strategies when they buy bank repossessed homes. Some of these people buy the homes, fix them up and then sell them to buyers looking for a fixed up home. They are able to help revitalize the neighborhood, sell a quality home to a buyer and make some money in the process.
Still other real estate investors will buy the homes, fix them up and rent them. The rental market is in very good shape at this time because it is not very easy for homebuyers with any blemishes on their credit to buy a home right now. This allows the renters to clean up their credit and possibly buy a house a few years down the road. A savvy investor will try and sell the home to the current tenants and cash out of that house in a few years.
A third possibility is to buy bank repossessed homes very cheap and then wholesale it to another investor. There are a lot of people doing this today and it can help both investors make money. Many people want to buy a house to fix up but they don’t know where to find the deals and others just don’t want to spend the time or money finding the deals. They are willing to make a little less just to have someone hand them a distressed property on a plate for them.
Believe it or not, home buyers are also savvy real estate investors and many of them have learned about buying bank repossessed homes. It’s a great way for a home buyer to get a house in a good area that might need a little work. Yes, they will either have to put in some sweat equity or pay to have the work done. But, in the end they will have a great house in a nice neighborhood to call home.
Given the flood of bank repossessed homes in the housing market, there are plenty of deals to be had for anyone that is interested. Every home that is bought either by a real estate investor or a home buyer, one less home sits empty. To learn more about wholesaling bank repossessed houses CLICK HERE.