There are many pre foreclosure properties on the market today this presents an almost endless inventory. (and endless opportunity) for savvy investors who know how to act.
There is little doubt most real estate investors believe this is the best time in several decades to be investing in pre foreclosure real estate. Of course anyone can make money when the market is booming in your area. The challenge is to make money in a down market, and to do that you need to base your buying and selling decisions on hard facts. If you know what to look for you can make money no matter what market you are in. You want to know when the market will go bad and when the market will begin to boom. When the market is at its highest you want to sell off and take your profits,and when the market is at its low end just ready to start up again so you can get in on the low market and sell for big profits. To do this you need to follow several indicators. Just remember real estate values are always local in nature and don't necessarily reflect the national market. One real estate market indicator is Housing Affordability this guages the affordibility of houses based upon how well a borrower making the median income can qualify for a loan to purchase a home at the median price. The National Association of Realtors (NAR) has a index that revolves around the100% mark. A rating of 100% means a median income earner has enough to purchase a median priced home with 20% down payment. A index number above 100% means that the median income earner has more than enough money to qualify for a loan to purchase a median priced home. A rating of 100% is considered ideal for a growing market and a higher supply. This is but one of the many indicator season investors use when evaluating properties.