Recently we have been receiving offers from numerous sources to purchase foreclosures for “Pennies on the dollar” in areas that are to be desired………These are properties that have gone through the entire foreclosure process and No One Wanted To Purchase Them In Their Local Markets! So Why Should You? The normal foreclosure process goes as follows:
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Usually the home owner puts the home on the market pre foreclosure in order to avoid losing their home, and what do you know, No One Wanted to Purchase it.
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Once the home is foreclosed on, it then goes for sale at the courthouse steps at a discount and again, No One Wanted to Purchase it.
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At this point the bank hires a local agent to put the house on the market as a bank owned –REO property at a significant discount. Again, No One in the Local Market Wanted to Purchase it.
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Once a bank recognizes that they have a portfolio of properties that No One wants, they then unload them for “Pennies on the Dollar”.
But what dollar do you compare it to? Once a property is transferred for the new, “Pennies on the dollar,” price that becomes the new value of the property and those in its appraisal area so you are not buying at a discount and only creating a weaker market. The Interesting Thing is that No One in the Local Market Wanted to Purchase it for “Pennies on the dollar” So Why Should You?
Many real estate experts agree that we have not seen the bottom of the market yet. In an article found on CNBC.com (4/21/09), Michael Goldsmith, Managing Director of BBK says “Too many foreclosures mean a weak economy that will slow down a housing rebound”. The article goes on to discuss that the current foreclosures across the country were from “Sub Prime” loans and that a new wave of foreclosures are about to hit from the “Prime” loan market. As of March 31, 2009, the number of defaults on prime loans is up 70% driven primarily by job losses.
How do we invest in real estate now and start earning 14% Next Month and Every Month for a year?
You can immediately see a return on your investment by making bridge loans on solid income producing commercial properties. Please visit our website at www.arctuscapital.com and contact Jeff Lindikoff at jeff@arctuscapital.com for a complete investor packet and learn how you can utilize a self directed IRA to earn real money in a down real estate market