Just Closed On Another Great Deal Today

I received a call today from the Title Company letting me know that the foreclosure I was buying had just closed escrow and had recorded in my name. This was a GMAC bank foreclosure purchase, and the process was quite smooth contrary to what you may have heard about buying bank owned properties. Escrow took about 4 weeks to close and there were no major hiccups to speak of.

This investment home is Approx. 3200 Sq.Ft., has 5 bedrooms, a den, loft, family room, dinning room, living room, 3 car garage, and kitchen with a pass through bar and Island. The original purchase price for this home in 2005 was $252,000. Over the course of just months, the home had reached an appraised value of over $350,000 as did most of the homes of comparable square footage in the neighborhood. Fast forward to today, the foreclosure purchase price was 50% less than the original purchase price. This was an incredible investment opportunity considering the home's previous values. Rental income should bring in Approx. $1,800 per month which is a R.O.I (return on investment) of 18% per year... not to mention the future appreciation value which will easily double in value during the next appreciation cycle . If the money used to purchase the home had been left in a Money Market account at today's interest rates, it would have had a return of Approx. $280 per month or $3,360 per year. That's a loss of $18,240 of potential income a year when compared to renting the home out.

Banks are simply liquidating homes at this point. You still have an opportunity to take advantage of today's foreclosure and short sale market. High returns and substantial appreciation value are yours for the taking. You just have to be proactive and realize that this is the time to invest in real estate if you want to maximize your R.O.I.