Look To Foreclosure Markets For Short Sale Opportunities

Nothing is sweeter than finding the perfect distressed property, in the perfect area, at the perfect price. Just one such property can easily earn you a years worth of investment income. Trouble is most real estate investors rarely ever find their ‘dream’ foreclosure. In fact, the average foreclosure investor will struggle to find a single, decent foreclosed property. It’s not because there aren’t foreclosed properties to go round, but rather because of the sheer number of people looking to invest in foreclosed properties. To make matters worse, investors have penetrated every phase of the foreclosure process.

This means that many savvy investors try to get a steal on a house before the house is made available to the general public. It is this point in the selection process where  short sale opportunities can be found. And most distressed homeowners will listen to you if you have a short sale plan that can help them avoid foreclosure. These homes are available in almost all areas of the country but investors have a tendency to only look for properties within their general area. Some foreclosure investors have simply forgotten that a profit made anywhere is still a profit. If you’re having trouble locating the perfect short sale candidate, it could be because you simply live in an area that isn’t very well suited to short sales.

The first market you should consider outside of your own should be the next closest metropolitan area near your home. Remember, different areas will likely have different demographics and market trends. Before looking into any other area, you should always be sure to have an exit strategy in mind. When it comes to foreclosed or almost-foreclosed homes, the best exit strategy is renting the property. In order to do this you need to evaluate the rental market of your chosen city.

If you like to travel and see new places, you might consider looking for distressed property in the country’s biggest foreclosure markets. Right now, Atlanta, Houston, and Denver have the hottest foreclosure markets anywhere in the United States. In fact, Atlanta has such a high rate of foreclosures that it is frequently shown on television as an example of the recent foreclosure boom. If you happen to have an internet connection you can easily find foreclosed properties in these areas to invest in.

All of the research you need to do to find distressed property can be done online. You can easily look at county and city records online at no cost. You can also find a Realtor to use as a partner by going to Realtor.com. To find out detailed information about market trends you can look at the websites of local real estate investors clubs. Every major metropolitan area has an investors club.

By expanding your base of operations beyond your usual boundaries you can dig up all kinds of sweet deals you may not have been able to find otherwise.