Cash is king!!!

Over the past 4 months, I am experiencing a great increase in real estate sales activities in the east bay and solano county, where we believe the market has reached its bottom.  Many contractor/investor buyers are snatching up these distressed homes at pennies on the dollar and then turning them around after fixing them up.  Of course, in order for these buyers to get the property at that price, the banks need to see CASH. 

In the foreclosure market, it’s not as important for you to provide the highest bid like it is in regular market.  Sellers want to get the most for their money, but banks want assurance that the buyer can pay.  In a situation where a buyer with 150k cash vs. a buyer willing to buy at 180k but need financing, the bank WILL take the 150k cash.

Distressed properties are selling like hot cakes because they are priced extremely low on the bank’s books.  For people that are afraid of going into the stock market right now and want a short time horizon to make money, this is the time to get in the foreclosure market, because the risk is extremely low right now given how cheap the homes are.  Even if you can’t flip it, it’s still going to serve is a good rental investment earning good cashflow.

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