The Real Estate Short Sale - Key Investment Opportunity for 2008

The Real Estate Short Sale - Key Investment Opportunity for 2008

by Brandon Cornett

The real estate foreclosure explosion continues to wreak its havoc upon consumers and corporations alike.

On the consumer side, we are seeing tighter restrictions on mortgage lending, which makes it harder to obtain a mortgage loan. This is one of the reasons I keep chiming in about keeping a good credit score ... it is the most important thing consumers can do when facing the financial uncertainty we are now facing.

On the corporate side, many of the same lending institutions that got us into this mess (by loaning money to people who had no business taking on a mortgage loan), have suffered meltdowns all their own. According to their website, Ameriquest is no longer accepting applications for home loans. And Bank of America recently announced it will buy Countrywide.

Goodbye subprime lending industry.

But isn't there any good news within all of this?

Sure, if you're a real estate investor with ready access to financing. As the number of home foreclosures rise, so too do the number of real estate short sales and auctions -- both prime investment opportunities for purchasing a home below market value.

By way of definition, a "short sale" is a real estate sale where the sale price is less than what the seller still owes to the lender (via the mortgage loan).

In other words, the seller will sell the home for less than what he or she owes to the lender, and the lender will agree to accept this amount from the homeowner and "forgive" the remainder still owed. That is the basic definition of a short sale in real estate terms.

Believe it or not, mortgage lenders do not want to foreclose on homes. It's a hassle for them. They are in the business of lending money -- not managing, marketing and selling properties. So the lender will often allow the seller to pursue a short sale just to get the property off their hands, and off their books.

Normally, the seller will work with a real estate agent who specializes in short sale techniques ... somebody who can get the word out quickly about the great investment opportunity, and thus sell the home much faster than through traditional sales methods.

So if you're a buyer looking for an opportunity to buy a home for less than market value, tracking short sales could be the method for you.

Tracking Short Sales and Foreclosures

In the previous paragraph, the word "tracking" probably caught your eye. Obviously, you have to know about homes entering the foreclosure process so that you can evaluate them from an investment standpoint. Thus you must track short sales and foreclosures in your area.

Currently, there are about a dozen web-based services that can help you track foreclosures and short sales anywhere in the United States. Basically, you sign up for the service, enter your target search area (city or cities), and the service will send you email notifications about foreclosures.

If you plan to use one of these services, I recommend you conduct a free trial with two or three of the leading providers, to see which one you like best.

Orlando Florida Real Estate: Awash with Opportunity

Orlando Florida Real Estate: Awash with Opportunity

by Doug Lasley

The real estate market has went through turbulent times in the past, however no market has ever been as stable as the Orlando Florida real estate market over the past decade. You may ask yourself, why has this been the case? The answer is simple: when a market has a self-sustaining vibrant economy, and is also a particularly sought after tourist location, international money markets can protect the real estate market in times of decline. In other areas of the US when the property market slumps, it slumps. In Orlando, on the other hand, demand among international buyers prop up demand in poor market conditions meaning property prices never decline for long. And as the most popular tourist location in the United States, which has high levels of employment, is it really difficult to comprehend why every property investor in the US wants to add some Orlando real estate to their portfolio?

However when the market conditions are so strong, is it really the best time to invest in the Orlando real estate market? There are many reasons why the answer is a resounding yes. Firstly, the US dollar is valued very low at the moment in relation to foreign currency. This means that foreign buyers will be able to allot more to buying Orlando real estate and it also means that tourists can afford to spend more when it comes to renting villas in the Orlando area. It is also the case that because our currency is trading particularly low at the moment that more tourists are going to be coming to the United States - meaning that areas which are more popular tourist locations are going to thrive.

The value of the dollar is only one reason why investment in real estate can be a great idea at the moment. Interest rates have never been better either! That's right, interest rates are very low at the moment, meaning that the cost of buying Orlando real estate will be much cheaper than it would usually be. As a buyer, this is certainly the time to invest as much as possible in the real estate market - as long as you can be confident that you will be able to fill your accommodation. And, when in the Orlando area, you can rely on tourists as well as locals to be able to live in your property.

Many people have achieved millionaire status and financial freedom through investing in the real estate market, however that is not to say that it is not without risk. While there is no investment opportunity that can ever result in certain returns, it is fair to say that there is no opportunity that is as a lucrative and as stable as real estate. Over time real estate prices can only go in one direction, and that is up! Real estate investment also creates cash flow and can usually be sold very easily. If you want to escape from the daily 9-5 grind, then investing in Orlando Florida real estate may just be the answer that you are looking for.