In the not so distant past American real estate was hiring all time highs in almost every area. Today we are seeing all time low's in those same areas that once had great appreciation.
What caused the shift you may ask?
Well, unless you have not been living in the country nor have an affinity for American news you would be clueless to the opportunity which awaits you. With so many foreclosures on the horizon, housing in most American communities has before affordable and profitable again.
Buying a foreclosure or pre-foreclosure is one way to make money in this recovering economy. If you were to consider purchasing a short sale, consider purchasing it all cash which gives you the ability to purchase at a lower price. Once purchased you could either sell it for a profit to another buyer, or rent it out and gain equity while waiting out the recovery.
So let's say you have a home with equity of $ 250,000, you could use the equity to purchase a home in pre-foreclosure or a foreclosure. The equity usage could be in the form of refinancing to cash out or a line of credit.
What if you did not intend to own the property but want to still make a profit from this American recovery?
You could use a line of credit or the cash out to become a private lender. Being a private lender gives all the benefits without the headaches. You lend money; receive interest without ever having to own the property. Being a private lender is less of a liability position.
But also keep in mind when becoming a private lender the money does not go in the hand of the buyer. The money goes to escrow for a specific property. This way, you can have your cake and eat it too, without losing in the end.
Source by Andrea A Allen