The foreclosure news across the country is getting more grim unless you are a real estate investor.
USA Today’s article Foreclosure Crisis Has Ripple Effect illustrates the problems more cities are having because of defaulting homeowners.
Crime is up around vacant homes and tax revenue is down.
It’s our prediction not only that real estate investors will be welcomed more and more, but many will probably be getting the red carpet treatment.
Why? Because real estate investing involves more than making money. You make money because you are a problem solver. But when you stop to think about it isn’t that the way most fortunes are made?
These vacant properties are ideal for buy and hold investors who don’t mind landlording.
For those real estate investors who don’t want to be landlords there’s the path set up by such trusted experts as Robert Shemin who advocates the rent-to-own method of getting tenants who will buy the property from you.
Shemin becomes his own bank. He states on page 108 of his very good book, Secrets of a Millionaire Landlord, that the lease-option is the best way to do business. "Statistically, only one our of four or five tenants who sign rent-to-own agreements follow through on them."
Here’s another interesting point buried down deep.in the USA Today story
"California cities rely heavily on sales tax revenues since the 1978 passage of Proposition 13, which caps real estate taxes. Riverside faces a $12 million deficit this year.’"
Riverside Mayor Ronald Loveridge goes onto say that they’ve handled that by not filling positions.
Could it be possible cutting back growing government can actually save money?
How many positions would Riverside city officials have created and filled if it hadn’t been for Proposition 13?
I’ll leave you with that thought.