Today we here over and over again by the Media that home values are falling and the next round of foreclosures are about to begin. If you are told this enough you will begin to lose all faith in the value of Real Estate. Currently Real Estate values are roughly at 2001 values. This drop in Real Estate value has gotten several groups pooling money to purchase foreclosed and short sell properties. The surprising thing here is several banks have invested in these groups to cash in the future. It is estimated that home values will have a full recovery sometime in 2012.
The plan of these Real Estate investment groups is to purchase as many homes as possible and rent out these properties to debt service the loans until 2012. With values falling as much as 50% these investment groups stand to double their money in 3 to 4 years. At a minimum they are looking at 25% per year return on investment. And this is without any rental income factored in.
The problem with main stream media is that they appear to be using statistics and these statistics take time to formulate which leaves you behind the curve. These investment groups know this and are banking on it. By the time the Media gets around to talking about the value of investing in Real Estate most in not all of the good buys will be gone. I have been asked how do you get the good buys or when not to buy and the answer is simple. Do the opposite of the masses and you will always be ahead of the curve.
If you click on the Realtor tab at the top of the page their are several people that can help you find REO’s and/or short sell properties.