Coming Foreclosure Crisis and How to Profit

Foreclosures are an unfortunate side effect of economic downturns and financial hardship. The most recent trend of rising home prices has created a rapidly changing housing market, and increasing inflation puts more and more people under financial strain.

However, these changes can represent a great opportunity for those investors with the funds to make cash offers on houses. Continue reading to learn more about the coming foreclosure crisis and how to profit from it.

Factors Influencing the Foreclosure Crisis

The pandemic had a wide-reaching impact on the economy. Layoffs and furloughs ran rampant at the start of the pandemic and subsequent shutdowns, prompting Congress and States to put protections in place, including mortgage forbearance. This allowed many homeowners to remain in their homes during the worst of the shutdowns, but many still rely on these protections which have or close to reaching their expiration dates.

Some economists believe this will lead to a foreclosure crisis that will sweep the nation, similar to the 2008 crisis. Now, with increase inflation, shrinkflation, the Feds increasing interest rates, these financial strains, and hardships are tipping many homeowners over the edge. As mortgage payments resume, this will mean increasing foreclosures as more and more people struggle to make or catch up on payments.

There may be some pockets across the country that will not get hit as bad as others. However, many communities will feel the impact of this upcoming foreclosure crisis. In 2008, the housing bubble popped, and homes lost a significant amount of their value, meaning homeowners would still owe the bank even if they sold their homes. This crisis maybe worst because of the level of personal debt that the average homeowner holds along with inflation and rates. With all these factors in mind and if you understand your local market, this will give way to several opportunities for investors that are positioned correctly to make profit.

Position Yourself for Profit from These Changes

With foreclosure homes going to auction and pre-foreclosure homes hitting the market as homeowners try to sell before foreclosure, more and more homes will be available to purchase, likely at lower prices if you can make a cash offer. Once you start buying these houses, you have many options to make profit. One play is to market the house, Lease with Option to Buy, allowing you to hold onto the property, collect a down payment, get monthly rent and lock in a future sale price point to the option buyer. There are several more ways to profits and advantages to this strategy that we can discuss later. Just know, in a foreclosure market, this can be a very high profit, low risk return option if executed properly by the right investor. Great long-term or short-term play!

This strategy is already being used successfully by larger real estate corporations across the nation. You see the commercials about this but the way they market it you would never think of it as a simple Lease Buy option. It is!

With rising interest rates, tougher bank lending practices make homeownership more and more difficult for the average American, this will lead to an increase in the numbers of people leasing. These people want to own in the long term if given the right options too.

This creates a large market for those investors with properties that can offer this as an option. Additionally, the renting segment of the housing market is almost as tight as the purchasing side, and increased demand for a set supply will continue to raise prices. As an investor, its up to you to get in the middle of this trend, develop, and execute a plan that will allow you to profit while also helping others in the market during these turbulent times. How exciting!!

Get The Right Team in Place to Profit

The key to making a profit in the coming foreclosure crisis is having the financing in place to make offers and close deals timely. Getting the right lenders and real estate consulting team together to help you develop the best plan to execute is the first important step to being successful.

Triton Investors is a leader in real estate lending and real estate consulting with the right tools to help you get ahead and profit in all your real estate ventures. Let us know how you view this market and if our team can help your company grow, schedule a FREE consultation today.