Indianapolis, IN (PRWEB) April 7, 2007
Lending practices in the late 90's and early 2000's are being blamed for the current boom in foreclosure homes. But beyond the obvious loss of the home by an individual, a community and neighborhood can also feel the ill effects of a foreclosure A foreclosed home can degrade a neighborhoods home values and rob a community of its tax based revenue.
Foreclosed homes create an opportunity for investors to not only personally profit, but to breathe life back into neighborhoods and the economy.
Al Scaife, President of American Equity Properties, LLC., in Indianapolis, Indiana, says, "Buying a foreclosure property helps the community in several ways. First, a foreclosed house (once purchased. restored and rented or sold) becomes a warm and beautiful home and raises the value of other homes in the neighborhood. Secondly, the community benefits further because the home is now back on the tax roles and generating revenue for the county. Thirdly, commerce is boosted because of the products and services engaged to repair the property. Home repair stores, contractors, title companies and real estate agents participate in the process. Employers pay their employees and employees buy more goods. Banks reduce their REO liability and gain an opportunity to finance a new loan. And finally, a happy family moves into their new home, whether to purchase or rent. There aren't many investments that do so much and make you feel so good."
Investors are drawn to the foreclosure market because of the opportunities for a good ROI. Interest rates on savings accounts are very low. And while it is a safe investment, it probably does not keep with inflation. Investments that are safe and provide good ROI are key. Foreclosure returns can be 10% or more and are secured by real estate.
Most investors do not have the time or expertise to research, estimate cost and bid on properties Additionally, properties usually require cleanup, upgrades and repairs before they are made available for the market. Companies like American Equity Properties, LLC., provide these services for their clients.
Al Scaife, President of American Equity Properties, LLC. in Indianapolis, Indiana, involved his company with foreclosure homes in March of 2006. Since that time he has purchased 9 homes all of which are currently rented producing positive income. Al states, "The Indianapolis market is one of the hottest in the country. I do not remember the market being this hot since the mid 80's." In the 80's Al Scaife assisted several investors in obtaining investment homes with good equity and ROI.
American Equity Properties, LLC., has a goal of purchasing 50 homes or more this year. "We use capital from banks and hard money lenders to reach our goals and welcome new investors," says Al Scaife. "The key to obtaining properties is having good relationships with banks, contractors and real estate agents. This has worked very well for us and has proven to be a best practice!"
Banks and lending institutions are overloaded with REO (Real Estate Owned) property obtained through foreclosure. Overloaded inventories pressure the banks and lending institutions to discount their properties to sell them quicker. Sometimes to the tune of 10-30%. This is where investors can profit and their participation brings the many benefits back to the community.
Al Scaife of American Equity Properties, LLC., can be contacted at 317-908-5395 for more information about the Indianapolis, Indiana, market or investment opportunities.