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Investors Making Money from Jacksonville Pre Foreclosures

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By : John Cutts    99 or more times read
Investors now make money both from Jacksonville pre foreclosures and completed foreclosures.

Over the past years, investors who make money quickly from buying homes and reselling quickly at a much higher price are oftentimes seen as vultures. They have also been blamed as among those who caused the overshooting of house prices during the boom.

But now, investors are seen as part of the solution of the foreclosure crisis. With their expertise in buying and selling properties, they are seen as people who can cut through the red tape and put people more quickly into foreclosed homes and help make a dent on the loads and loads of distressed homes on the market.

Low-priced foreclosures in Jacksonville have been the target of out-of-state investors over the past year. They are also looking for properties in distress – those expected to be sold off eventually at homes auctions in Jacksonville if the owners are not able to cure their delinquencies within a certain period of time.

According to Jacksonville real estate professional C.C. Underwood, who has been helping out-of-state investors work out the purchase of Jacksonville pre foreclosures for the past three years, the difference between flipping during the boom and today is the transparency of the flipping process now. Also, the final buyers of pre-foreclosures now still get their properties at a sharp discount.

Underwood said that flippers of pre-foreclosures typically earn just a few hundred dollars for every short sale, but they increase their profits by doing more short sales, which typically take six months to complete. Flippers used to be seen as taking advantage of the inexperience of first time buyers; now they are seen as facilitators of difficult short sales.

Investors can earn more from foreclosed properties, with many of them making several thousand dollars off one foreclosure, but they oftentimes work out short sales while waiting for a foreclosure deal to complete.

In Duval County, where Jacksonville is the administrative city, a total of 1,710 properties were for short sale as of the second week of March and 567 units were already REOs.

In February, as short sales and foreclosure sales increased, the number of nondistressed homes sold dropped to 470 units, down by more than 12 percent from the 535 units sold in January.

According to the Northeast Florida Association of Realtors, distressed properties, which include Jacksonville pre foreclosures, accounted for almost 50 percent of all home sales in the metro area in February this year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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