We get quite a few requests for foreclosures. Unfortunately that train has temporarily left the station. Years ago foreclosures were aplenty and we could pick up some incredible deals. However, with the market in our area heating up they have become few and far between.
In fact, the last time we put an offer in on a foreclosure, the buyer offered over full asking price and it was an all cash offer. We were one of 11 offers and even in that scenario we did not get the deal. People are grossly overpaying for foreclosures, especially given the amount of work many of these properties require. If you are willing to look outside the Madison area there still are a few foreclosures around.
But keep the faith. The day is coming, in the not to distant future, when we are going to go through another real estate cycle. You will need to be ready to move, with as much cash as you can stock-pile when that occurs. When the market is tanking, that is the time to jump in. But you have to overcome your fears. The truth is you can never time the market exactly. However, when good deals, with strong cash flow start to appear, it is time to take the leap.