| The current downturn in the economy has drastically | | | | money and not real estate, every day that they have |
| affected many people and left them unable to pay | | | | to hold onto these properties they are losing money. |
| their mortgages. While this is definitely not good for | | | | What does this Mean to Me? |
| those who end up losing their homes, it can be good | | | | Even with the economy being in a slump it is possible |
| for the savvy investor. One way that you can turn a | | | | to make money in real estate if you go about it the |
| profit is to look for bank owned properties that are for | | | | right way. A bank like Wells Fargo is looking to find a |
| sale. Banks like Wells Fargo have ended up with long | | | | buyer for the properties that they have been stuck |
| lists of properties that they hold the mortgages on that | | | | with. In many cases they are willing to sell them at a |
| have gone into foreclosure. | | | | fraction of their original value just to clear the books |
| How do the Banks End Up with the Property | | | | and make some of the money that was loaned on the |
| With over 11 million people currently out of work the | | | | house back. This gives you a perfect opportunity to |
| number of mortgages that banks like Wells Fargo | | | | buy these houses and use them to make money. |
| have been left holding onto has grown to incredible | | | | While the market for selling houses is down, the rental |
| numbers. In many cases the homeowners have gone | | | | market is soaring. Some of the houses are likely to |
| into default and the courts have taken their homes | | | | need a little TLC to make them usable, but after a |
| away and in others the homeowners have simply | | | | small investment can become a great rental unit. You |
| moved out and walked away from their mortgages. | | | | need to take a close look at any of the bank owned |
| These homes end up becoming bank owned | | | | properties for sale by Wells Fargo Bank or any other |
| properties as they look for ways to recoup their | | | | bank in your area and see whether or not the cost of |
| losses. | | | | the house and the cost of any repairs will leave you in |
| Bank owned properties give you the investor a golden | | | | a position to make money once the house is |
| opportunity to take advantage of the banks desire to | | | | considered habitable. If so you can rent it out until the |
| unload these properties as quickly as possible in order | | | | real estate market picks up, at which point you should |
| to cut their losses. Since these are bank owned | | | | be able to sell it and recoup your costs. |
| properties and the banks are in the business of lending | | | | |