Honestly - I'm still on the fence regarding whether or not now is the perfect time to buy. For some properties in some neighborhoods, I agree - there are well priced properties. Not all properties are created equal, however, so I don't believe it is ideal for everyone to buy. If you do buy, make sure you buy smart. Foreclosures and short sales may represent a fairly high percentage of sales in the near term, but not all represent the best deal. Some sellers who are not in financial distress have priced their properties to sell and may be better deals.
Ok - so you still want to make money in real estate, but you still don't want to buy real estate. I think most would people respond by saying - Um - have you taken your meds? I - however - would respond - of course you do! Let's make money in real estate without actually buying real estate.
Ok - I am not Carlton Sheets, nor do I play him on TV. There are ways to actually make money in real estate without outright purchasing a property. Needless to say, this is a tough market in a majority of cities currently. In light of the flood of foreclosures, there are many people in dire financial straights, unable to meet their monthly mortgage obligation, hence forcing a short sale or foreclosure. The deluge of foreclosures is having a significant impact not only on real estate values, it is also putting a strain on local governments in terms of unpaid property tax revenues. Not only are people having difficultly paying their mortgages, in many cases, their property taxes are also in arrears.
This presents an interesting opportunity. While unpaid real estate taxes is not a new phenomenon, the magnitude of unpaid tax bills will have an impact on local government - some bills may go unpaid for a longer than normal period. In order for local governments to generate revenue from unpaid tax bills, state laws allow local entities to sell unpaid taxes at auction.
http://thomasjhall.com/links.php?url=http://www.cookcountytreasurer.com/default.aspx
So - you want to make money in real estate, but you don't want to actually buy real estate? Hmmm - how 'bout buying someone's outstanding tax bill? While this may not make you rich, it may allow you to generate some income while not being fully exposed to the issues related to the purchase of a foreclosure.
Each year the county has an auction for all outstanding tax bills where any qualified individual can bid on the balance due on the available properties with delinquencies. You bid on a rate of return you wish to be paid on the balance of the outstanding tax bill - to be paid as interest. If you win the auction, you pay the outstanding balance. When the property owner pays off the balance, you are paid interest on the balance plus the outstanding balance.
Understand that the owner of the property will in all probability pay the outstanding balance due - if so, you will be paid the balance due plus interest. Here are the details:
http://thomasjhall.com/links.php?url=http://www.cookcountytreasurer.com/default.aspx
Again, this is not a get rich quick investment opportunity - it represents a way to potential make a better than market return on your money in real estate without a full exposure to holding a property that may continue to decline in value.
While still a low probability, you still could actually end up with the property by simply paying for only a portion of an outstanding tax bill. If the balance of any outstanding tax bill is unpaid for a period of 3 years, you can obtain the property as default. Again, a large majority of property owners pay their outstanding balances off, however, in light of the current flood of foreclosures, there may be a slightly greater possibility of actually obtaining a property by simply paying the back taxes.
So - it's not your meds - you actually can make money in real estate without having to actually buy it.
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