Here's a pleasant surprise...unemployment and home sales were both up in July.
We know about unemployment, but what spurred home sales to go up?
Experts concluded that deep discounts on real estate invetory spurred homebuyers and investors to pick up these home for dirt cheap.
Even though, it's tougher for some to obtain mortgage loans, banks and lenders are in business to lend money. However, they're looking for borrowers that have the ability to repay the loan they take out. Excellent credit is not mandatory. In fact, you can get a loan with 'Zero Down Payment' even if you've had credit issues in the past. There are government programs that allow homebuyers who have had a Chapter 7 Bankruptcy just 24 months ago to qualify for these loan programs.
Money Magazine published an article in the winter of 2008 about a group of Hedge Fund managers who collectively put together $1 Billion to invest in single family homes.
Their strategy is to make offers on foreclosed homes, or homes that are about to go in foreclosure. They offer 50% of the value. Upon purchasing these homes, they will perform some cosmetic repairs and try to sell at a discount. The homes they don't sell, they will rent out.
Average people have been doing this for years...and some have become rich using these strategies.
According to industry experts, there has never been a better time to invest in real estate, simply because prices are extremely low and they will not remain this low for too much longer.
