The Timing Factor of Foreclosure Investing

By: John Sern

There is a very basic rule when it comes to foreclosure investing and business in general, you wait for your commodities to drop in value and when they are low enough you buy them and hold them until they start to appreciate again, there is no such a thing as buying at anytime in order to turn a profit, at least it doesn't happen in the real estate market, this is a fact that brings us to today's eye opening article.

Timing is everything. Just like in any other market there are ups and downs but knowing how to recognize these ups and downs and when to jump in is what separates expert investors from everyone else. When it comes to Real estate investments the upside is big, it is bigger than any other investment today and because of the economic downturn which was triggered mainly by the real estate bubble smart investors must be setting their "economic sensors" in order to recognize that today's real estate market is reaching a bottom as expressed by Jim Cramer, host of CNBC's Mad Money.

According to Mr. Cramer (savvy investor) the real estate market will reach a bottom by the end of the second quarter of 09, he arrived to this conclusion after analyzing the effect that the decisions taken by Ben Bernanke have had in the equity market and after good brainstorming and analysis he has come to the conclusion that the real estate bottom is now very close.

Foreclosure Investing

The beauty of investing on foreclosures is that you can get great properties at an incredible discount and then turn them into profit but we are living in interesting economic times and the real estate market has suffered a great decline which represents losses for some but huge opportunities for investors.

As the real estate market reaches a bottom, foreclosures will start to die down and finding great deals on properties will become harder and harder, if this is to occur by the end or beginning of the third quarter of 09 the timeframe investors have to jump in and make the investment of their lifetimes is very limited.

When foreclosures start to slow down more people will stay in their homes and the market will slowly but surely start to appreciate once again so it doesn’t take a rocket scientist to know that this huge drop in housing prices will not last forever so analyzing all economic indicators can pay off big time when if you are to jump on the foreclosure investing movement.