Real Estate Investing Basics

Why the Country Needs Investors!

Expertise: Real Estate Marketing, Personal Development, Real Estate News & Commentary, Mortgages & Creative Financing, Real Estate Investing Basics, Landlording & Rental Properties, Flipping Houses, Personal Finance, Business Management
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The following is a guest blog by Matt Milmeister, author of Mastering the Art of Foreclosure Investing.

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Anytime there is a foreclosure and the bank takes these properties back, they sit vacant. When this happens, the yards and houses further deteriorate and they become eyesores for their neighborhoods. Then property values of perfectly good homes in the same areas begin a steady decline.

Falling over
Image by egoldin via Flickr

Vacant properties pose a risk for kids getting hurt by playing around in them, they attract drug dealers and users or worse. It is not unusual for vacant houses to be stripped of their copper plumbing, heating equipment and air conditioning units, then to be vandalized, set on fire, and ultimately demolished. We are all familiar with such scenes in some of the rustbelt cities where it has taken decades for the communities to recover.

In California and Florida, foreclosed properties with swimming pools create special problems. With pools unattended, they become breeding grounds for mosquitoes, so communities have to spend much needed funds on helicopters to identify these pools, and then send city health inspectors in to chlorinate the pools to prevent a health hazard. Foreclosed properties are bad for our communities!

When investors acquire and fix up these properties, the overall landscape of our communities is improved. Usually investors buy to rent – which provides people who need reasonably priced housing with places to live, and provides neighborhoods with residents who care about the properties in which they live. Market values are stabilized and then generally increase over time. The psychology and well being of neighborhoods and communities are also stabilized and improved. When people look around and see activity in real estate, they feel better about the future. And since our economy is based on psychology, a positive outlook has powerful multiplying capabilities.

America has always thrived on the basis of investment and hard work by entrepreneurs. America needs investors! Foreclosed real estate properties of all shapes and sizes are currently in abundance and represent tremendous opportunities for our nation to build value and increase wealth while at the same time improving the overall economy and well being of our citizens.

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Joshua Dorkin is a serial entrepreneur, investor, podcaster, publisher, educator, and co-author of How to Invest in Real Estate. He started BiggerPockets to help democratize the real estate investing landscape for himself and others, aiming to make it accessible for everyone, regardless of income or education. Today, BiggerPockets is the premier real estate investing website online with over one million members and reaching over 70 million people with the message of financial freedom through real estate investing. Joshua, along with his wife and three daughters, make their home in Denver, Colorado, and spend any time they can traveling, exploring, and adventuring. Read more about Joshua’s story in 5280 and Inc.com.