Here was the question:

I would love to buy a piece of America now while prices are suppressed especially income producing real estate properties in the U.S. But, specifically, exactly how do you find and pick up some great deals on bank-owned and short-sale properties.

I would love to purchase a single family home in beautiful Palm Beach Gardens, Florida for only $65,000.  I just don’t think the vast majority of people — myself included — know how to find this type of property and then close the deal.

I guess I just don’t know the right people.

I’ll tell you how I got a great deal on a short-sale property.  My wife and I looked at many homes on realtor.com until we found a few properties that were good candidates for rental properties.  One of these was a nice property listed for $99,000.  This home was going for $250,000 a couple of years ago.

We called the listing agent directly and inspected the property thoroughly.  I suggest you work with the listing agent directly.  The listing agent will work extra hard for you because they will get the maximum commission by being the agent for both the buyer and the seller.

The owner of the single family home owed the banks $200,000 for his two mortgages.  We offered a low-ball offer of $55K and he accepted, because the bank was going to take the hit in the short-sale and he just wanted to get rid of the property.  The whole process took five months and the banks finally accepted $65,000 for the house.

An impatient person would have asked for their deposit back after a couple of months of waiting – and that’s why most short-sales don’t get completed.  The key to getting a fantastic deal on short-sale properties is to have plenty of patience.   Short-sales take time to close and can be frustrating at times, but you could truly get the deal of the century in today’s real estate market.

Best Wishes,

Ted Peroulakis

Source: How to Buy Short-Sale Properties

This from Today’s Financial News:

Well look at that. Government intervention is actually helping in a way our lawmakers intended. While not all of the Fed’s programs have been a success, the one it created last week is working to get the nation’s economy back on track.

You may recall the Federal Reserve announced last week that it planned to purchase up to $500 billion worth of mortgage-backed securities from government-sponsored agencies like Fannie Mae and Freddie Mac. Its goal was to grease the rusty gears of the real estate industry and force mortgage rates lower.

The plan worked.

The Mortgage Bankers Association announced this morning that last week’s mortgage application rate skyrocketed a record 112%. With the gauge at 857, applications last week were at their highest levels since late March.

Of course, buyers were not gobbling up homes during the Thanksgiving week because Fannie and Freddie were getting a break. They were applying for mortgages because interest rates are at their lowest rates since 2005. Buyers are getting a fantastic deal.

The boosters are ignited

A week or so ago, a 30-year fixed mortgage came with a rate of close to 6.5%. Today, perspective buyers can lock in a rate with Wells Fargo (NYSE:WFC) of just 5.375%. That is enough to pull monthly mortgage payments down by several hundred dollars each month.

With rates this low and homes this cheap, buyers are finally realizing the opportunity they have on their hands. Out of all of the deals the Fed has created over the past three months, this one has the most potential of directly helping the American people.

But what about you as an investor? Well, the news is even better. The real estate industry has traditionally been a leading indicator. In other words, it rises ahead of the financial markets. An increase in home purchases and therefore home values, is a surefire indication that the equities market will be making similar moves in the near future.

There are some great investment opportunities out there.  But for now, stay away from traditional real estate plays like REITs and the nation’s large homebuilders. The deleveraging tsunami is still pulling these sectors under and there will likely to be more pain in the near future.

If you want to make conservative investments with larger-than-usual profit potential, stick with the big guys. Blue Chips are a great investment as the nation gets back on track. Companies like General Electric (NYSE:GE) and Altria (NSYE:MO) with their strong dividends and proven history of healthy revenue growth are worth your money.

The Federal Reserve is making positive moves, the real estate market is on the rebound and moneymaking opportunities are all over the place. If you are not going to buy a house or two at these great prices, at least invest in a few discounted stocks.

Source: The real estate industry gets a favor from Bernanke