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Michigan foreclosures have pressed down real estate values in Metro Detroit for over 4 years in a row. The silver lining to these skidding values is that investors now recognize that prices for investment properties have never been more attractive.

So why aren’t more people snatching up houses at rock bottom prices like a kid on a Toys R Us shopping spree?

Well when they take the next steps to transforming this dream into reality they find out that most mortgage lenders currently will not allow you to have more than 4 mortgages to your name if you are applying for another. When translated, this means that you can only have 3 additional mortgages on your credit report if you have one on your primary residence.

You would think that people would go out and get their four properties, maybe even have their spouse get another four too. Instead we see people deciding that if they can’t buy ten next month in their own name, they won’t get involved at all.

I know a lot of people that are buying Michigan Foreclosures and are using creative strategies to work around the 4-property and high-down payment obstacles. Here’s one that works well.

Use commercial funding to refinance your investment properties. If the properties were bought right with significant positive cashflow, then it shouldn’t be too difficult to package three rented homes together into one commercial loan. This frees up the funds that were used to acquire the property (either from a line of credit, straight cash, or other sources) so they can be re-invested in purchasing an additional three properties.

Commercial loans are different from standard mortgages. They often come with 10 year amortizations and have to be refinanced every five years and because of that it’s usually best to select the right type of investment homes that have such a high cashflow rate that they can account for it.

This translates into buying very inexpensive properties. Houses that can be bought and fixed up for $30,000 or less and will rent for $750-$950 per month match up well to being rolled into commercial loans.

This is why smart real estate investors from across the nation are turning to Michigan foreclosures and properties in other areas that can be had for a bargain price. The financing is still there to keep buying more properties while prices are at record lows. Even after the published declines brought on by the credit crunch and mortgage meltdown, other markets on either coast as well as Florida have values averaging well over $150,000 which don’t mesh well with commercial financing.

So if you want to buy a lot of properties at great prices that cashflow well in a short amount of time, then real estate investing in Michigan foreclosures is the way to go.

Michigan foreclosures bring a unique benefit not found in other real estate markets…namely that homes can be bought at such low prices, but they still command high rents.

Further more, with new methods to collect rent automatically each month and great property managements companies to take care of the occasional leaky faucet; it’s easier than ever to invest from afar.

Do some research and I’m sure you’ll agree that Michigan foreclosures may be just the type of alternative investment you are looking for. It might even be able to help you turn around the losses the stock market had dealt to your other investments and get on track where your finances and retirement goals are concerned.

Brian Kurtz is a licensed Realtor who invests in Michigan real estate and shows people nationwide how they too can take advantage of the unique Michigan foreclosure market without ever leaving their own home town. Sign up for Brian’s Hot List of wholesale investment properties at http://www.PremierRealEstateInvesting.com