The White House Wants You to Rent Out Foreclosures
The White House’s plan makes sense when you think about the data. The desire for owner-occupied properties is still weak, thanks in large part to the banking industry’s reluctance to approve new mortgages. At the same time, the popularity of both rental properties and rent-to-own properties is climbing steadily as the children of the new millennium get older, have kids and outgrow their apartments. Turning otherwise useless foreclosures into rental properties seems like a pretty good solution to the problem. The only catch for private investors is that the government wants to unload these properties in bulk. They’re planning to sell off the foreclosures in batches of 25 to 500. Although the properties are going for 20% less than their current market value and the government is instituting financing plans for the program, buying that many houses might still be too expensive for many individuals. On top of that, you’ll also have to deal with rehabbing and managing more than 10 foreclosures at once, making business partners and employees a necessity. However, if you keep your eye on the prize, it could end up paying off. Rental income builds up slowly, but once you amass enough properties, you can easily earn six figures a year for a minimal amount of work – especially if you pay for your foreclosures up front. We’ll deliver all the details as the plan progresses, so make sure to check back often. After all, this could be the investment opportunity of a lifetime.
Forget about flipping houses. If you want to make some real money on the housing market in 2012, help out the White House and start renting out foreclosures. This past Tuesday, the Obama administration announced that it’s working on a pilot program to sell off batches of Federal Housing Authority-owned foreclosures around the country – as rental properties. While there are many questions that need to be answered before the program becomes active, there’s also a lot of money to be made for real estate investors who have the cash and the work ethic to succeed.