Guidant Financial Group Blog

Whereas less than two years ago Guidant’s clients saw rehabs and flips as a means to balance out their volatile stock portfolio, today foreclosures are the investment-du-jour.

Our self-directed IRA clients have always had an interest in foreclosures; however, with the credit crisis and the plethora of foreclosed homes on the market, it is now a rare day when we do not hear from someone who is considering investing in foreclosures.

TheStreet.com came out with an article last week outlining the three ways one can invest in foreclosures (see Offset Your Investment Portfolio With Foreclosures). While there are advantages and disadvantages to each approach; it is quite apparent that the author prefers pre-foreclosures.

Pre-foreclosures appear to give the investor the most amount of leverage when negotiating a price and any repairs that may need to be made to the property.

Whichever way you choose to invest in foreclosures, it appears that this investment trend is here to stay for a while – so study up!