Bank Foreclosures are a
Good Investment
Bank Foreclosures should be an essential part of your foreclosure properties investing strategy. A bank foreclosure occurs when the bank takes possession of a home because of a foreclosure.
If the lender (bank) takes possession or ownership of the property either via an agreement with the owner during preforeclosure or at a public auction the lender will want to sell the bank foreclosure to recover the unpaid loan amount. The bank must clear the title and take care of any maintenance on the home prior to putting it back on the market as a bank foreclosure. A bank foreclosure is also commonly referred to as an REO (real estate owned) home, although the terms are interchangeable.
(A bank foreclosure can become a government foreclosure if the loan is backed by Housing and Urban Development (commonly known as HUD) or the Department of Veteran Affairs (VA). The property would then be resold by the government agency and would not be considered a bank foreclosure.)
Now is the time to buy foreclosures.
Here’s why:
- Las Vegas Real Estate sales have been on a steady incline for much of calendar 2008 – there has never been a better time to buy foreclosures.
- Our Las Vegas Real Estate prices have been eroding for much of the last 12-15 months – we believe they are close to absolute bottom or so low that we will not see any significant statistical reductions moving forward.
- Our rental market is extremely robust; the average investment property is rented quickly, 1-2 weeks in most cases, due to the significant number of people who have lost their homes via a foreclosure and must turn to rentals.
- Depending on the home price, a builder cannot buy raw land today and build a house for what many homes are selling for in our local market – replacement costs for Las Vegas real estate exceed many foreclosure deals.
- We are running out of Las Vegas Real Estate – there is only 35 thousand acres left of land that can be developed in the Las Vegas Valley, the rest is owned by the Federal Government, only about 10% of Nevada is privately owned.
- Nevada is projected to grow approximately 49% by the year 2028, expanding by another 1.3 million people during this time period, while the US as a whole will grow by 22% - the majority of this growth will occur with Las Vegas real estate – now is the time to buy foreclosures.
- You may also want to consider buying a Preforeclosure as part of your investment strategy. Click here to read more about Preforeclosures
- You can buy a foreclosure that will put you in a cash positive investment, with a return of 15-25% depending on your down payment.
Click here to have an agent contact you to find foreclosure homes
Foreclosure Investing Strategy
