Let’s face it – we’re in fairly turbulent times right now when it comes to the real estate market.  After a long-term boom in real estate and housing prices, many consumers have backed themselves into a corner.

As we see more and more of the effects from overactive subprime lending, increasing APRs, and zero percent down payments, it’s all too clear that those on the fringe are feeling the squeeze.

For example, look at all of the home buyers that have been utilizing normally risky tactics to enter prohibitively priced real estate markets.  Consider those that were already maxed out to start with and then took interest only loans out on top because the interest was simply all they could afford to pay.

Well, guess what… When they’re already on the edge, it doesn’t take much to flip them over.  Increases in utilities and other costs of living have done exactly that.

The result?  Loan defaults.

The same holds true for all of those feeling the increase adjustments in variable rate APR mortgages that seemed like awesome deals 5 years ago.  Many can’t afford the rate increases, but now they also can’t even qualify for a new loan.

What’s that mean?  You guessed it… more loan defaults.

Combine skyrocketing defaults and foreclosure risk and we now have an abundance of properties on the market that need to be sold fast and under distress.  Figure there’s fewer potential buyers being able to qualify for loans due to rapidly increasing restrictiveness of the once ultra-lax subprime industry.

So with all the bleakness, what could the upside possibly be?

An abundance of homes left for savvy real estate investors with rock solid finances – the opportunity commonly recognized as a buyer’s market.

Let the investing begin!