I have been noticing an unprecedented number of seminars, books, articles, and TV shows,
all proclaiming that foreclosures are a vast pool of lucrative deals.
While I do agree that foreclosures can provide investment opportunities, as I see it,
this market is very over blown. Demand among tens of thousands of people is driving up prices
and the real deals are getting much harder to come by.

There are foreclosure books, tapes, seminars, newspaper and magazine articles everywhere you look.
There is not a week that goes by in Atlanta, GA that someone is not giving a speech, a seminar
or teaching a class on how to buy foreclosures. Websites offer lists of all the foreclosed properties,
with photos, and detailed information for as little as $19 per month.

I am beginning to see and hear lender comments concerning being deluged with offers on some
foreclosed properties. I can't help but wonder..."Is the foreclosure market reaching
a saturation point for investor activity?"

Compounding the issue is the fact that many would-be investors are bidding way too much for properties,
and driving prices up to near full market value. You will find that most foreclosed properties are listed for
sale at or near 100% of market value, even when they need $20,000 in repairs.

I have watched this trend develop over the past 3 years now.

Houses we used to buy for $35,000 now regularly sell for twice that much.
All the big marketing people know what's "hot", and lately, the buzz word has been foreclosures.
The ownership or control of real property is a documented source of wealth.
No one can argue with the big time, big wave, seminars. Real estate can make you money a variety of ways.

But if everyone is riding the same big wave, our surfboards are inevitably going to run together.
I believe what we are seeing is a foreclosure market that is so loaded with investors fresh out of seminars,
that it no longer represents the widespread area of opportunity it once did.
The seminars have done their job thoroughly.

If there is a "secret" that is not openly told, it is the fact that only 1 to 5 percent of the properties in any
given county in Georgia will be considered a good potential deal by professional investors.

Generally, a "good deal" involves locating properties that have lots of equity in them. There just aren't many.
Most foreclosures occur within the first five years of the purchase.
Properties with lots of equity are less likely to get foreclosed on.

That is not to say that these techniques don't work. They do -- in the right place and time.
I am suggesting that the prime time for foreclosure deals was just before everyone in the world
found out about them. (at least two years ago, by my estimation)

The next good foreclosure market will ensue a few months after everyone in the world goes on to
"the next big thing", leaving foreclosures to languish like unsold American Idol recordings.

You may sort through 50 or even 100 properties to find one or two good foreclosure deals.
But, the question is, "is that your idea of a workable investment plan?" It amounts to a full time
telemarketing job, and a very part-time investing career.

So, if foreclosures are getting old, then WHAT is coming next??
I am predicting that the next "big wave" will be income properties. As I said in the May 2004 issue,
rising interest rates will herald the return of stronger rental markets. Creative techniques such as Options, Lease/Options,
subject-to and such, will be making a come back as these rising rates begin to transform the current sellers market into the
first true buyers market we have seen in the suburban Atlanta area in 10 years.

Foreclosures will still remain high for the time being, and banks could eventually find themselves in a "fire-sale" mode,
as interest rate increases begin to put a damper on the home sales market. I think the best foreclosure bargains
are a couple of years away. Or, whenever interest rates hit 8%. If foreclosure inventories are as high then
as they are now, we will see some true short selling and negotiable lenders.

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I just recently found the package I am linking to below. I always read these things with a skeptical eye,
but I have to admit this is creative real estate, and I think, right in line with my article above.

It's not my program. I wish it was. But I thought it was worth including here because it is one for the future years,
and a breath of fresh air in a room filled with stale foreclosure talk. I would have written it myself
IF I'd only had sense enough to think of it.

It is called "Real Estate with NO Credit". I personally believe that the strategies and ideas taught in this course
will be the "next big thing" in the real estate seminar world. In fact, I would go so far as to predict that
within two to three years, this type of course will be the biggest topic at real estate investor clubs around the country.
As I said in my main article, there is tremendous competition among investors, and in order to get the best deals,
you have to be ahead of the crowd. That is ultimately how the "gurus" did it.

They were doing their buying at a time before the "crowd" knew what was going on. But enough of my talk.
Check it out for yourself. With today's internet technology, you can actually hear them talking about this program.
It is sponsored by ClickBank, so it is a reputable vendor and they have a money back guarantee
if you decide to try it out.

Just cut and paste the link below into your browsers URL window.

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I am happy to announce that effective with the June 1, 2004 issue
we will be expanding our newsletters to a new issue about every 10 days.
I will be doing more articles on specific real estate nuts and bolts. Some upcoming issues
will include topics like:

How much money do full time investors REALLY make?

I also want to answer your questions too. If you have that topic that has been burning in your mind,
and you would like an answer, just email me and I will try to address your question in the newsletter.
As long as time permits, I always try to answer all of your email questions.

send them to mailto:drobinson@reihelp.com

Feel Free to forward this newsletter to anyone you know who is interested in real estate investing.

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Donna Robinson is also available for consulting and deal evaluation.

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Reprints and Quotes are permitted as long as a link to www.reihelp.com is included.

Copyright Donna Robinson 2004 All rights reserved.

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