Thanks to the subprime lending fiasco, the nation’s economy tanked, home prices fell, interest rates took a nosedive to historic lows, and inventory was plentiful — especially in the foreclosure market. We’ve been able to pick up REO properties at a good discount, then renovate and get a healthy profits on resale. Buying rental properties at the foreclosure auction or via a short sale has provided us the ability to reposition these properties for generous cash flow.
Over the past 12 months we’ve seen a shift in the distressed real estate market. The ability to buy distressed properties at a low enough discount to earn a healthy profit is