Foreclosure Lesson #3 - National Factors - Flow of Investment Funds

Now that we have looked at interest rates and inflation, its time to look at the Flow of Investment Funds and how they affect foreclosures and Real Estate in general.

Flow of Investment Funds refers to the number of people that are involved in Real Estate. When money flows into Real Estate, more people are buying homes and selling homes. In reverse, when money flows out of Real Estate, less people are buying and selling. The important thing to know where is the more people that are buying and selling, the more prices fluctuate. Just like the Supply and Demand curve.

Pay close attention to the Flow of Investment Funds. When people are shifting their money from Real Estate to something else, its the time to buy. The reason its the time to buy is because people want money quickly. Its important here to avoid following the crowd. This is where the money is made. Also realize that there are few things you can invest in that is safer and pays like Real Estate. The stock market crashes quickly, the Real Estate market takes months or even years to change.

You can figure out how the Flow of Investment Funds are going by talking to a Realtor, a member of the National Association of Realtors. The National Association of Realtors send out information to its members about the status of the National Market. You will also want to talk with a local realtor about the local market, but we will get into that a little later on.

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