Thursday, May 31, 2012
In many markets, but especially California, Arizona, and Nevada investors are buying up foreclosed homes to try and rehab them and "flip" them to make a profit. What is happening, just like the housing boom/bust, is that bidding wars are driving the prices up as more and more people try to get into this. The cautionary tail here is don't do it unless you have the wherewithal to hang on. Not every deal has the potential to make money and most margins are pretty slim. I still believe in Real Estate but we've been burned by not having the ability to hang on when the world went down the tubes. So for anyone jumping into this I suggest baby steps and be overly cautious---you may have to hang on awhile if it doesn't sell.