There is no doubt that the past four years have seen dramatic dips in home values, particularly in California, and the results have caused serious damage to the U.S. economy. However, when you look at any 10-year period in the history of housing prices in the U.S, you will see that there has been no better place to invest your hard earned money.
But the question is, Is now the time to invest? Well, the simple fact remains that no one can tell we’ve reached a bottom until we’ve already past it. But history has shown that when housing prices fall they typically do so gradually over time. But when they appreciate, they bounce relatively quickly. Whether or not it is the right time to invest in real estate is completely up to you, and the government has many incentives to begin buying before the end of 2009.
One of the best places to begin investing in real estate is in the foreclosure market. Undoubtedly, there are many deals to be made purchasing foreclosures, whether it is purchasing the foreclosure property through a short sale early on in the foreclosure process, going to the county courthouse and bidding on foreclosure auctions, or simply making a deal on a bank-owned REO property (already went through the foreclosure process and went back to the bank). In order to make a dent in the real estate foreclosure market, you must first locate the properties that fit your investment needs. There are a few ways to find these listings, and it is the shrewd business person who uses as many options as possible.
1. Locate paid subscription services online that provide updated listings on a daily basis, such as All Access Foreclosures (see Resources below). You can locate records throughout California, which is particularly convenient if you plan to invest in more than one city or county.
2. Review public notices, which are usually found at county courthouses around the country, on a regular basis. Not only will you find foreclosure listings, but you'll also get information on pre-foreclosure properties (the step before foreclosure). This is a time-consuming process, which is why most investors choose to utilize an online service that provides all types of free foreclosures listings and are generally a good price (make sure you use a service that charges you one fee for the month with several package options, rather than a pay-per-record subscription, as that can get fairly costly, fairly quickly).