Hello everyone,
I’m a newbie to REI but am dedicated to learn everything I can and succeed. This is my first post and surely not my last. I would like to thank everyone in advance for any info that you can offer.
Now, for my question: I’ve been reading that a preforeclosure has more potential profit than a property in foreclosure. However, in this time of falling house prices and people filing for bankruptsy after owning for just a short time, owners often have no equity and owe more to the bank than the property is worth. How can an investor help both the distressed owner and satisfy the lender in this scenario?
Another question: With property prices forecasted to fall for the next 6 to 18 months (depending on what you read), the only way to make money is to flip the property fast (or hold onto the property until the market turns around). If the property is a rehab, the repairs must be done fast and the property sold before the price drops more than the original investment and improvement costs. Why would an investor take the risk of losing money so easily at this time? Wouldn’t it be much safer to wait until the market bottoms out?
Thanks!