We all have a lot of options when it comes to investing. We can invest in stocks, bonds, currencies, futures and a lot of other things that all have one thing in common: they are just pieces of paper that we put our faith in. They are basically promises to pay later, made by a company or a country that we believe in. But the last few years have shaken that faith pretty badly. About the only thing that these investments have that is good, as far as I can see, is that they are easy to buy and sell.
Real estate is a different story. When you buy property you’ve got something tangible. You’ve got something you can see, feel and use. You can live in it, or you can lease it out, or you can sell it. Right now if you’re investing in Redlands California property, you can get a great deal. There are thousands of properties in Redlands that are either in foreclosure or are headed for foreclosure.
You can buy some of these properties for 50% of what the previous owner paid. You can buy residential property or commercial property that is being sold to the highest bidder. For example, on West Lucky Way there is a house that had $613,000 in loans on it and it is valued at $320,000 as of April 14, 2010. I’m looking at another on W. Chestnut Ave. that Foreclosure Radar values at $164,000 and it has loans on it of $436,000. Foreclosure Radar estimates that the Cap Rate on that property is 19.5% and the estimated rent is $2672 a month. That sounds like something worth looking at.
Real estate has a lot of investment advantages. That is especially the case in our current market. The foreclosure crisis has forced a glut of property onto market and it is a real buyer’s paradise right now. This is the first time in years that an investor can buy a property in California and rent it out for a positive cash flow. People still need to live in houses; they just can’t afford the mortgages that were created at the height of the bubble. You can get a great deal on real estate by buying Bank One foreclosures and other foreclosure properties.
Investors buying foreclosures are only paying about half of what the properties cost just a few years ago, whether they are buying Appalachian bank foreclosures or foreclosure properties in Redlands, California. Because of that they can rent them out cheaply enough that the same people who could not afford the mortgage payments can now afford the rental payment.
Another great advantage that investors buying foreclosures have today is that we currently have the lowest interest rates in decades. It can’t last long, but interest rates today are lower than 5%. My sister just bought a house in Palm Desert, California and got a 30-year fixed interest rate of 4.62%. This combination of low prices and low interest rates is very favorable to investors who want to rent out their properties for profit.
You can use one of the financial calculators online to get the exact details, but with both low interest rates and low purchase prices it would be hard not to get a great deal on a Redlands, California foreclosure.
Get a free ForeclosureRadar search at www.RedlandsForeclosures.org. Get the ultimate low down instantly in our complete Redlands Foreclosures guide.