Most of us are well aware of the California gold rush of 1847. Thousands of people rushed to California for gold in the hope of winning a fortune. It is true that many left disappointed and with far less than what came with. However, many people actually found gold, much of it and changed dramatically life and the lives of their descendants, even those living today.

During the past year or so, the number of homes for sale (inventory) has increased dramatically. For example, according to a table provided by the Wall Street Journal1, between October 2006 and March 2007 the inventory of homes in Los Vegas went from 40,000 to about 120,000, of Chicago grew from about 46,000 to some 89,000, Miami was about 25,000 to about 76,000, Phoenix went from about 17,000 to about 51,000. Sales of housing is not diminished significantly but the number of houses is increasing very significantly.

What does this mean? Selling a home is very difficult in the market. According to the U.S. Department Labor2 inflation has risen about 15.5% between 2002 and 2007. People generally are less able to pay the bills they were. According to an article published in RealtyTrac.com3, in 2005 only, since the first quarter for the last quarter, the number of houses in a state foreclosure in the U.S. rose by 25%. This means a lot of houses going into foreclosure. This means a lot of people forced to sell their homes quickly and can not. This means a lot of houses available for much less money its current market value.

Then, How do you go about finding a home that is in foreclosure? Find * all * the goods that are in foreclosure is easy. All counties in the U.S. has a department of records which are recorded legal documents. Foreclosure documents recorded in the county that is the house in question. These records are publicly available. States have different laws on foreclosure so you need to know what documents are presented to initiate the foreclosure process in your state. In the State of Florida, the first document is a Lis Pendens recorded officially notifying the owner / borrower that the lender intends to foreclose. Looking at the records that you can learn the address of the property and usually the name and address of owner / borrower. You can also subscribe to the list of excluded services so you can browse from the comfort of your home, at your convenience.

You may ask, "once I found a house, how can I buy it?". Especially if you have no money. Many ways to get the money is there, but there are two that are most popular among real estate investors:
1. You can take existing loans TOPIC 'A', which means you just take over the loan payments, as it is. Be needed to offset the payments again. This is not the same as to "assume" a loan. You just take the existing loan. Of course there are precautions: usually had put the house in a trust or something similar. Companies Mortgage welcome, but it is legal. In fact, most states have strict laws (mainly on advertising for the seller) about taking a loan FIELD A. Real estate investors do all the time and you can too.
2. HARD lenders – thousands of short-term lenders that there are more than happy supply with every penny you need to close a transaction. They are usually concerned about their credit, they are much more concerned about the viability the operation to have on the table. If you like the deal, which I lend you money. Often, you pay nothing until the deal closes, or sometimes even sell the house.
Thus, you can purchase your home owner / borrower before it goes into foreclosure (which helps the buyer) or can be purchased at the foreclosure auction. Most investors prefer to buy before the auction.
Real estate investors generally do not pay more than 70% of current fair market value Property fewer repairs and renovations.

You may ask, "once you have the property, how can I sell in this terrible housing market?". Simple, do not get greedy! Sell the property for 85% of its current fair market value. You will need to ensure that what seems real * good, usually painting and the carpet (which should have been negotiated in the purchase price). Advertising on the news paper, publishing and real estate with about 40 small signs in the neighborhood. Offer real estate agents 3% if they sell it to you. Alternatively, you can sell very quickly to another investor for a lower price, say 75%.

The housing industry is in a lot of problems right now. But like most things, a natural equilibrium that is established and largely by investors real estate. Yes, now rife with foreclosures, but many people with a little initiative rush and break up, make lots of money, changing their lives and their family life while helping to solve the problem.
1. Http: / / online.wsj.com/public/resources/documents/info-flash07.html? Project = housingInv07-0604 & h = 540 & w = 750 & Hasad = 1
Http: / / www.bls.gov / bls / inflation.htm 2.
3. href = "http://www.realtytrac.com/news/press/pressRelease.asp?PressReleaseID=86"> http://www.realtytrac.com/news/press/pressRelease.asp?PressReleaseID=86

About the Author:

Marl K. Atkins is an Internet marketing consultant specializing in the promotion of small and medium sized businesses.
Florida Web Design * Orlando, FL

Article Source: ArticlesBase.com – The New Gold Rush! the Foreclosure Boom

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