Profiting from Foreclosures
Entrepreneurs in High-Foreclosure Areas Turn Homeowners Into Tenants
Came across this article today and thought it was worthwhile sharing. The thrust of it is this: in certain US markets, where foreclosure is far more common than here in Canada, investors are buying houses that are coming up on foreclosure and keeping the former owners as tenants. My first impression was one of disbelief. It's so simple! So elegant!
And kinda repugnant too....though I'm not sure why I feel this way other than the pure 'opportunism' of it all.
I mean, really, if you think about it, it is a creative way for all parties to get something from the arrangement. The former owner isn't kicked out of the house, the bank clears the bad debt from their books, and the investor gets a property that kicks out cashflow from day one with almost no extra investment beyond the initial purchase.
Came across this article today and thought it was worthwhile sharing. The thrust of it is this: in certain US markets, where foreclosure is far more common than here in Canada, investors are buying houses that are coming up on foreclosure and keeping the former owners as tenants. My first impression was one of disbelief. It's so simple! So elegant!
And kinda repugnant too....though I'm not sure why I feel this way other than the pure 'opportunism' of it all.
I mean, really, if you think about it, it is a creative way for all parties to get something from the arrangement. The former owner isn't kicked out of the house, the bank clears the bad debt from their books, and the investor gets a property that kicks out cashflow from day one with almost no extra investment beyond the initial purchase.
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