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Is it the right time to invest in foreclosures?
April 24th, 2013 3:54 PM

Is it too late to be in the game?   Of course I’ve written before about how investors and private equity funds are scooping up much of the single family home market across the country and turning them into rental homes.   

It is indeed a strong time to buy as an investor, however if you plan rent out these properties it could be a bit more complicated.  Former Wall Street analyst and now cofounder of Sylvan Road Capital LLC, Oliver Chang says, "It pains us to say this, but there are going to be some failures, so it's probably important to know exactly what you're investing in."

Chang advises investors to know which strategy they are going with, whether it is through an REIT or buy homes for themselves.  His strategy with rentals is to manage and maintain all his properties in house, thus keeping costs down and leaves room for a higher yield.  He strongly suggests that banking appreciation is not the savviest plan either.

Daren Blomquist, vice president at RealtyTrac says, "If you're looking for that bottom in the market, you've missed it in those places," especially in most of California, phoenix, and Las Vegas.

The suggestion was to concentrate on judicial states, they still have a steady flow of foreclosures due the backed up court systems.  Maryland, Pennsylvania, New Jersey, Palm Bay, Fla.; New York; and Chicago were among the top markets to take advantage of investing in foreclosures.

Benjamin De Los Monteros of Cherry Picker Investments, based in Chicago, says, “I find that new investors are still emerging into our market almost on a daily basis.  Their biggest concern is, can they still find the properties they desire at a price that makes sense.  The answer is, yes.  CPI is a firm that strategically works with investors in accomplishing that goal.  We are one of the largest buyers out there representing numerous investors.   We have the technology, the man power and over 2 decades of auction purchasing experience.  No one does what we do at auction, or at the pace we do it.”

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Posted by Michael Hobbs on April 24th, 2013 3:54 PMPost a Comment

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