At one time, "The Beardstown Ladies" were the rage in investing.  They were an investment club of elderly females from the Midwest that posted strong results, which resulted in a great deal of media attention.foreclosure profits

The book they wrote, "The Beardstown Lady Stitch-in-Time Guide to Growing Your Nest Egg" provided much useful advice that makes passive investing in foreclosures very appealing.

Probably the best overall advice from the book was to start early in saving and investing.  It is the same with passive investing in pieces of real estate that has gone into foreclosure.  The sooner one starts, the more time is your side in investing.  As time is the greatest force in the universe, you definitely want it on your side in investing.

That is due to the power of compound interest.  This increases the value of an investment based on the return.  Foreclosure investing can result in double digit gains for the buyers.  As a result of that return, the money invested in foreclosed properties would double in less than seven years

Passive investing provides another critical element advocated by The Beardstown Ladies in their book and all others when it comes to buying and selling assets for a profit: risk management.  No matter what the investment, there is a risk attached.  That is after all, why the investor makes money from buying and selling it.  The basic foundation of investing is that the higher the reward, the higher the risk that comes with the asset.

Beardstown Ladies



Foreclosure investing presents a great deal of flexibility to the buyer,too.  If investment income is desired, then foreclosure properties can be turned into rental real estate.  If profits from selling are the goal, then the foreclosure can be put on the market when the timing is idea.  Increasing the returns from rental income and capital gains results when the foreclosed property is part of a retirement account, such as an individual retirement account (IRA).  That shields both income and selling profits from any taxes, resulting in the passive investing even more rewarding.

Passive investing greatly mitigates the risk for its investors in foreclosed properties.  It controls the process the with extensive due diligence and research on all facets of real estate investing, from the micro such as the condition of the physical properties to the macro, the overall appeal of the neighborhood so that it can be sold for a higher price.  As The Beardstown Ladies pointed out in their book, starting early is needed to book the largest profits. Passive investing with experts in foreclosed property deals is a proven way to make that happen!