Can you blame Canadians for making some aggressive moves to acquiring real estate investments in America? Blame Canada if you must, but it’s hard to deny that they can make some seriously shrewd moves. Meaning of course that Canadian investors are wisely buying foreclosed properties in Arizona! The U.S. real estate crisis was particularly severe in Arizona, one of the top states for real estate—and one of the top economies in the world. However, Canada’s real estate scene is not as volatile, and that’s why many shrewd northerners are taking advantage of the U.S.’s woes to pick up bargain priced investment properties.
Foreclosed Homes Sell for Less!
It’s a great idea, since foreclosed homes can be used for vacation homes, second homes, rental properties, quick fix and flip properties, or as future home sales down the road! The investor simply buys a home in foreclosure status and then increases cash flow with a hold and exit strategy. The investor has the option of restoring the house or waiting for the market to change. Naturally, a very low-priced home might be in need of repairs. After those repairs and some restoration, the house could be sold for a profit over the the initial payment. Don’t conclude though that every single foreclosed house is a fixer-upper. Some houses sell for below market price just because they are foreclosed properties. You can hold on to the property (perhaps renting it out) until the market changes for the better and more positive real estate news affects the Arizona economy. Within a few years, you could possibly sell the house for a higher profit without lifting a hammer!
There are thousands of foreclosed homes in Arizona and many of these homes are well kept and very luxurious. Bear in mind that the recession affects people from all walks of life, and some middle to upper class residents have no choice but to default on their home if their employment situation changes. Canadian investors make up an average of 27% of U.S. buyers. While every country in the world is experiencing some recessionary effects, Canada has not been impacted in the same way as the U.S., and a major real estate state like Arizona does pose unique opportunities for smart-thinking Canadian real estate buyers.
Risks and Opportunities in Arizona Distressed Properties
Is there any risk associated with Arizona foreclosure properties? There are always risk involved in real estate. In terms of buying foreclosed real estate, the risks of losing your investment are relatively low since you can keep the property and make money from rental income at the very least. The main risk to be aware of is buying a mortgage in second position. Unfortunately, this is a lot more common than most people think. The typical resolution is either to walk away with a loss. However, if the investor really wants the property they can try to negotiate buying the first mortgage.
You don’t have to go overseas just to find a great international investment! The professionals at AZ Foreclosure Bid Service, LLC buy specialize in buying properties sold at a discount at public auction. If you would like to explore buying foreclosures in Arizona call David Kruger or James Wehner today at 623-329-7000