Increasing Foreclosures Provide New Opportunities to Entrepreneurs

April 22nd, 2009 | Tags: Foreclosure

Increasing foreclosures are opening up and providing new opportunities to entrepreneurs. Paul Clark seeing the gloomy job market around him took a daring step. He gave up a good job to start off his own real estate enterprise. Many of his friends thought he was insane to do such a thing but he could see a great field of opportunities in foreclosures.

Clark started off by convincing wealthy investors to assist him financially to kick off his venture in February. It is a unique way to purchase a house. The financing will be done by his company.

A week ago Clark hopped on to a bus along with many other potential buyers to make a tour of the foreclosed houses located in Hixson and Red Bank. These “Deals on Wheels” were being operated by Aaron Shipley of ReMax. The investors and home buyers get a first hand view of the houses and experience the challenges and opportunities hidden in foreclosed units. The increase in foreclosures is making Shipley confident about organizing tours at least one per month.

Bus tours have become popular across the country. The potential buyers are being taken around in buses, vans and even in boats in Florida as buyers and sellers are reacting and responding to a changed market scene.

The sales of homes in Chattanooga region are down by 19% during the first few months of this year – 2009 in comparison to 2008. But despite the negative figures Shipley is optimistic that he can see signs of things picking up – one has to keep on at it. He explained, “It’s not a bad market. It’s a correction market. It’s good for those who know what to do.” The houses he shows range from $55,700 to $295,900. The great American dream may have got disrupted and many have had to walk away from their houses. But others are now getting the opportunity to walk into affordable homes.

Across the country a lender in general loses $50,000 when a unit slips into foreclosure. Thus many lenders (perhaps not all) are amenable to cutting their losses and sell the houses they have repossessed at discount rates. Cathy Sausanan of Ringgold is one of the many who feel that one can come across great deals in the foreclosed market. She thinks it is great to just go out there and get the feel of the market. But one has to be prepared that many of these units need considerable repairs.