Foreclosure Property Sales – Earning Lots of Money from Them
Foreclosure property sales have been the major source of money for one Florida-based investor whose sales soared when his purchase and quick resale of foreclosure properties were featured in a documentary produced by Michael Moore.
For investors looking for an example on how to profit from foreclosure properties, the story of Peter Zalewski, who spent his childhood in Chicago and who launched his foreclosure buying business in Bal Harbour can be a good case study to examine. Zalewski named his real estate investment firm Condo Vultures and specialized in cheap foreclosure condos. He also stepped up his sales efforts targeting foreign buyers who have been rising in number.
Zalewski focused first in South Florida, among the hardest hit regions in the country, and bought foreclosed properties at huge discounts and then resold them. He has agents that focus on individual buyers and a group that serves investors who are looking for bulk sales. Later, he opened operations in other cities such as San Diego and Las Vegas to be nearer neighborhoods where there are lots of foreclosures. He also has plans to open in foreclosure-clobbered Phoenix and Los Angeles.
According to Zalewski, bargain-priced foreclosure property sales in Florida, particularly in Miami, abound because of overbuilding during the boom years. There are still around 70,000 condo units for sale in the area as of October despite dropping from the staggering number of 108,000 condos as of October last year.
He said that around 60 to 70 percent of his buyers are second-home buyers or investors looking for cheap foreclosures and the rest are buyers who plan to occupy the properties. He added that during the condo building boom, long lines of people were making deposits for condo units not yet constructed. Today, he said, buyers are again forming long lines, but are now after foreclosed condos. What is significant, according to Zalewski, is the number of foreign buyers making higher purchase offers.
Some analysts have been contending that the buying frenzy may again duplicate the factors that contributed to the foreclosure crisis, but Zalewski explained that most buyers now have been buying in cash partly because of the competition and partly because of the hesitation of lenders in lending more money for real estate purchases.
All in all, the story of Zalewski shows that one can profit from foreclosure property sales if one is savvy and quick in looking for cheap investment opportunities.
