BUY WHEN THERE IS BLOOD IN THE STREETS

That is a horrible title but a common saying in the investment arena, particularly in real estate. In Colorado, there is a high foreclosure rate and a number of homeowners have become reluctant investors because they can't sell their houses. The supply definitely exceeds the damand. I have become a reluctant investor recently because I had to take over a property, I loaned money on a few months ago. When I inspected my new acquisition I was discouraged. The interior was a mess; however, that is something I can fix. The biggest problem is the exterior and, since it is a condominium, that can only be done by the property owners association which is something I have little control over. The homeowner dues are high, the association insolvent and many, if not most, property owners are delinquent in their dues. There are a whole host of foreclosures in the community. if this isn't blood in the streets, I can't imagine what is. You can buy these units for $50-70 per square foot and it may get worse before it gets better. Its a great location, near shopping and light rail and I am tempted to put together a group to buy more units. The key to success is being able to buy enough units to get control of the homeowner association so you can put money into the exterior. The luxury apartments across the street are renting for $1.50 per square foot per month. These units would provide a good return on investment at much lower rents. The question is: Am I ambitious enough to attack such a major undertaking? I doubt it but I will do some more research before reaching a decision. I'll keep you informed.