The global economic crisis and absolute collapse of the residential real estate market in the United States caused massive foreclosures and hardship for millions of Americans. Many folks bought above their means, and as the recession worsened many lives were lost due to their jobs and they could not make payments. Eventually, the government stepped in and stopped the foreclosures, but so many people have lost their homes that the inventory of homes for sale is quite high, and therefore, the price of homes is quite low.
Interestingly enough, there are a huge number of people who are making quite a bit of money buying real estate on the cheap. Many investors from China are actually driving around now in buses buying up all the foreclosures. Foreclosure tourism if you will. How could this happen? Many people are still wondering, but I am certainly not. Why you ask?
Well, I saw it coming, as it reminded me of the market in 1993. And because I read a very interesting book in the early 90s, one that I would recommend to you and it still sits on my personal library shelves at home. The name of the book is;
“How You Can Profit from the S&L Bailout; Why There Is Never a Better Time to Buy Real Estate,” by Sonny Block and Caroline Jank, 1991.
Why did it happen? Is the title of the first chapter, which reminds us of many of the chapters in the book’s on this latest residential real estate collapse, which are currently on the bookshelves of the major bookstores. In this book it suggests the best way of finding bailout properties, working with purchase contracts, finding cloud free titles, and investing for the future. Much of the advice given then is good advice today as well. Perhaps you should please consider all this.