Professionals across the United States today are stating that the housing crash is over and there is going to be a bottoming out occurring with the housing prices across the country in the very near future. The Federal Housing Finance Agency recently reported a 7.5% increase in new homes sold within the year of 2012 and this includes a 0.3% increase in single family homes. As an investor this is great news and means that there is once again money to be made within the US housing market as it continues to recover. With these statistics now on the market and within the media this is only going to further the confidence of sellers and buyers throughout the country and continue to allow the market to recover on the consistent basis it has been.
Now, let’s talk about how you can make money in this recovering market as a real estate investor. The most common way to do this for beginners and veterans alike is to take advantage of the millions of foreclosed homes on the market today. With an estimate of 6 million more foreclosed homes to hit the market in the coming months the prices are sure to stay low until this massive surplus is eliminated. Foreign investors really have a unique opportunity here to buy extremely cheap property in comparison to their own real estate markets and in return generate higher than expected profits from their sales or rentals. In some areas of the country returns of 10-18% have been seen in home rentals and flips which is definitely a high enough number to entice foreign and domestic investors alike.
With millions of foreclosed properties on the market today it is not hard to believe that there are many scam artists out there trying to capitalize on this unique opportunity. The internet is the most common place to find these scams and as an investor it is imperative you pay close attention to who you are placing your money with. Many of these companies suggest they can get you properties for as low as $20,000 with 30% returns; this of course is completely unrealistic and too good to be true. Also these same companies general advertise they can find these properties in Detroit, California and Las Vegas. As you may or may not know these are definite problem areas for real estate investors and not a good idea for beginners to start here.
The basic rule of thumb many investors follow is that if the company does not have a physical office in the city they claim to be selling real estate in then there is something not to be trusted with their operation. If you are interested in making money within this recovering market you can do so by attending short sale auctions, speaking with your bank about foreclosure opportunities, real estate agents are also good contacts to have in this industry. These are the people you can trust to have legitimate numbers and information in order to get started investing on the right track.