Foreclosures in Minneapolis Driving Down Prices

I went to see a good client of mine the other day. We do a lot of hardwood floor sanding work for him in North Minneapolis. My client has been rehabbing houses for over 20 years in North. This new place he bought is a nice 2 bedroom 1 bathroom house just south of Dowling Ave N, so it is not in that bad of area of North. It needs some work, but it’s not that bad. He got the house for $18,000. It is amazing. The house was a foreclosure like a lot of others cheap houses on the market in Minneapolis. Foreclosures are up 71% in Minneapolis since last year. I see it everyday. Investors or first time home buyers capitalizing on this situation. Their buying duplexes in South Minneapolis that cash flow, two-stories by Hiawatha that have a ton of character , fixing them up and selling them, making a good profit. The thing is, people I think sometimes forget, is it is easier to make money when the price is lower. Homes are still selling fast and close to the asking price. It is just that the prices are lower then they were a few years ago. According to CNNMoney, foreclosures nationwide are up 183%. In just one month from June to July, foreclosures are up 8% nationwide. This housing crisis is creating opportunities for many. I was talking to another client of mine today about his rental properties. He says that he just put an ad in the paper the other day for two of his properties to rent and he can’t even keep track of all the calls. So many people need to rent, they can’t get approved for mortgages or their too scared to buy. Plus he is still raising rents. I really don’t see the market turning around for a couple of years. I think it is a great opportunity though to make money and help people. When you fix up a place, you give a person or a family a place to live and help build up the community. If your interested in Minneapolis real estate call somebody you know and trust to help you out.