Real estate investors must look beyond bad this current bad real estate market and consider that financing constraints are preventing developers from building both in the residential and commercial markets.
Distressed homes and foreclosed homes can be excellent investments only if you approach the situation carefully and wisely, because bank foreclosure homes, including distressed homes, are considered to be the most sought after by experienced investors.
Many new housing developments were stopped by the banks who were financing the construction loans, leaving many partially built homes easy for picking up by astute investors.
So many people got in on the buying up foreclosure property action, it actually created a false market for new construction in some areas and over inflated prices of homes, especially in housing developments and even before completion.
Finding a property for sale by owner is a good way to find a bargain because the seller saves on realtor costs and may pass on this savings, at least in part, to you.
A mortgage banker is a direct lender; it lends you its own money, although it often sells the loan to the secondary market.