Many real estate investors are seeking profits by purchasing real estate online. Online auction houses such as eBay, Bid4Assets.com and Realestatesupermarket.com, are becoming havens for scams and rippoffs. According to an article by the Austin American Statesman, "Buffalo, N.Y., has been particularly hard-hit by online flipping, as the city's persistent population decline and high foreclosure rates have created a glut of about 20,000 vacant houses".
With interest rates still being relatively low, the real estate market continues to be the investment of choice for many newcomers who are weary of other wealth-building strategies. Although real estate has historically been an excellent investment vehicle, speculation has become more rampant and will most likely continue. The downside of these get-rich-quick and too-good-to-be-true schemes is that foreclosures continue to rise, causing higher interest rates for second liens, which are considered more "risky" ventures. This is increasingly a problem for investors who use leverage as a tool.
Comments