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Houston Foreclosure Investing Profitable with Fast Recovery

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By : John Cutts    99 or more times read
Houston foreclosure investing is a productive activity because of the strong economic fundamentals of the city. Forbes has also cited Houston as the fourth city with the best prospects for fast economic recovery.

The cities of Houston, Dallas, Austin and San Antonio have been holding up despite the crisis because their main industries are largely insulated from fluctuations in the economy. Aside from their much-touted energy industries, these Texas cities also have robust activities in their education, technology and government sectors.

Pre-foreclosures in Houston have also not soared as in cities in other states because the factors that led to many defaults in other places were largely absent in Houston. Home prices did not shoot up to the highest levels during the boom and overbuilding did not happen in the city.

Nevertheless, investors and homebuyers looking for lower-priced properties can find them in Houston foreclosure listings. In February, there was one foreclosure filing for every 760 homes in the city, giving more opportunities for people planning to take advantage of affordable foreclosures and for businesspeople focused on Houston foreclosure investing.

As explained by economists, investing in Houston real estate, whether distressed or not, is viable despite the surging foreclosure activity because of the capability of the city to withstand pressures.

The pace of foreclosure statewide also surged in February, but when compared to the overall number of households in the state, the foreclosure pace in Texas is much better than the pace in 25 other states. Texas was ranked 26th in foreclosure rate in February, up from 27th in January.

The popularity of Houston as a real estate investment destination is shown by the number of high-flying commercial and residential real estate firms investing in Houston and the number of buyers looking for high-quality homes in the city.

Among these investors are Means Knaus Partners and NewQuest Properties. NewQuest has bought 21 acres of land at Texas 6 while Means Knaus has doubled its real estate portfolio in Houston together with its partner Lexington Realty Trust.

According to Houston realtors, buyers looking for higher-cost homes are no longer looking for grand houses. What they want are more livable and less formal spaces for their families, open-floor concepts, energy efficiency systems, smart spaces and features that enhance family privacy.

Indeed, the pace of Houston foreclosure investing activity has been rising because of the economic strength of the city despite the downturn.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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