Finding Profits In Distressed Market
By: Kenny Doucette

In the last few years millions of people took advantage of mortgage programs with fantastic low introductory monthly payments. Unfortunately many of those programs were set to automatically convert into higher payments within just a few years. As this has happened many homeowners have found themselves unable to meet the new higher payments. They find themselves facing foreclosure. But how can that be a profitmaking opportunity for you And how does that have anything to do with vacation rentals

With the rental market as strong as it is and prices as low as theyve been with many stock portfolios in the doldrums many investors have been turning their attention toward the widening foreclosure real estate market as an investment alternative. Youll probably never see anything like this in your lifetime again. Plus by intervening you can help a family out of a looming financial crisis and possible bankruptcy by giving them an opportunity to find a good home with a more affordable house payment. So how does that work

Not everyone is fretting about the beleaguered housing market. However this also presents a tremendous financial opportunity for those people looking to find a good deal on a property. Whether youre looking for a house for yourself or an investment property that you can rent or sell homes in foreclosure or preforeclosure can be purchased at a substantial discount. Investors that bought houses in top vacation destinations are foreclosing on homes at an alarming rate. You

can take advantage of these low prices to get into the vacation rentals business. The cost of entering this business are at record lows and the market is growing at a rate at which few other financial/housing niches are. More and more people are realizing this. If you got away scotfree during the housing crisis then this is the time to cash in on your smartness and reward yourself. Buy a cheap vacation home rent it out and start making immediate profits. With plenty of online marketing options for vacation rentals and an everincreasing base of tourists that are choosing a personalized vacation rental experience over a boring sameold hotel stay your risk is low.

Foreclosure investing is not a getrichquick scheme. Not all deals are alike either. There are three stages of foreclosure each of which presents different buying opportunities. The first phase is preforeclosure which occurs when owners fall behind on their mortgage payments. In the next stage of foreclosure homes in defaults are auctioned off. Here too bargains can be found but the process can be risky. Bankowned homes or R.E.O.s include properties that didnt sell at auction. Some investors see these postforeclosures the third stage of foreclosure as the best way to buy discounted property because no emotions are involved buyers deal only with the lender. Finally its sort of like a normal real estate deal only with an unusual seller which prevents the market from spiraling downward.