The Denver Area Foreclosure Market: 2013 / 2014
As long term players in the home foreclosure markets throughout metro Denver, we have seen some wild fluctuations. Around 2007 thru 2009 there were some real opportunities to find 'significant' discounts to market values in the local foreclosure listings.
We successfully managed many investor purchases and flips. Typically, we could expect a 30% ROI on a 3 month turnaround. Personal residence purchases, after adding in the cost of the required renovations, could show a 30 %+ discount to nearby comparables.
However, the market got frothy, investors started overbidding for the available properties, and the market changed. Now, banks are expecting to sell their REO's for prices much closer to local comparables. The margins are just not there anymore.
So, for now, we do not actively pursue foreclosure deals.
However, we still occasionally find opportunities that make sense. The last one I found I immediately purchased myself. I renovated and rented it for an annual 23% ROI.
So, keep watching for those rare opportunities - we certainly will !