Foreclosed Real Estate Investments | Part Two

Foreclosed Real Estate InvestmentsLast time, we talked about foreclosed property investing and I shared what I, in my experience, have found to be beneficial in building my business.  Today,  I want to talk about the importance of what to do once you locate the property and  you are ready to make an offer.  Using real estate comps to decide on the offer price is a given, but I am hopeful that these tips will be helpful as well.

  • Keep this at the forefront of your mind: during a typical foreclosed property transaction, always make sure your contract includes an inspection contingency period for the property. This will allow you to safeguard your own interests especially if you find out about serious problems that might show up during such property inspections. Remember that most foreclosed properties are fixer-uppers, with some in need of major repairs. The major repairs could be a blessing in disguise, since they can also help bring the property prices down even lower. But you must also be able to weigh out the costs of repair with the property value that you have in mind. Be sure to cover all the bases and keep your investment options working to your advantage.
  • Before you go into price negotiations with the seller, work to obtain a loan pre-qualification or a loan pre-approval letter. This will help you immensely, knowing that financing such purchases on your part is already guaranteed. HUD, realtors, and property sellers are more likely to deal with buyers with available funds than someone whose financing might be in doubt.

Your success in foreclosed real estate investing relies on how you follow such tips and make them work for you. It would be a mistake not to give proper research to any investment opportunity that comes your way. It pays to know and learn what you are getting into. That is essential to every successful real estate investor.

Foreclosed Real Estate Investments | Part One

Foreclosed Real Estate InvestmentsForeclosed real estate investing will take more than just having enough capital to invest. An investment like this will require you to learn more about real estate comps and the ins and outs of foreclosed real estate investing. Such investments also come with their own risks, just like any other profitable business. Success comes to the wise investor and that is what you should aim for if you want to profit from your real estate investments.

There are some useful tips that you can put into practice when you step into foreclosed real estate investing. I want to share some of them in my next couple of posts.

  • I’ve said this before: location is key. When looking at the profits to be made off properties in foreclosed real estate investing, one of the things that you should always consider is its location. Location has everything to do with foreclosed real estate investing.

The right location will determine the marketability of foreclosed real estate properties. The best locations where you can get the best deals in foreclosed real estate investing are in mid-level to upscale neighborhoods. Property investments in such areas not only will make you acquire properties that have a wider market among prospective homebuyers, they might also be easier to sell.

Please join me next time when I share some additional information to help foreclosure investments become a thing of second nature to you and your business.

Investment Property

Investment PropertyAnyone working in the real estate investment field knows that real estate comps are a integral part of the process. Real estate investments surely provide a steady flow of income and returns. The important thing is, that they are strategic and really sound. As a new investor, it will be helpful if you use this simple checklist for real estate investments.

First, the location always matters.  Market valuation varies depending on the property location. Of course, valuation of real estate in expensive markets is higher compared to similar properties located in cheaper and less lucrative markets. That is the nature of the real estate investment business. Learning what market you want to invest in, and mastering that arena, will be a key factor in your success.

Knowing the value of a property, as well as the value of properties in the surrounding neighborhood(s) will give you an indication of the expected rental income of the property. If the real estate is not likely to generate significant rental income, then that information would be seen in its valuation.

Keep the physical points of a property in the forefront of your mind when searching for rental property.  Being esthetically pleasing is what will attract renters.  When you find a property that is already on par, then you may have a few minor updates or repairs to get a tenant.  A property that is well maintained on the exterior/interior will keep your tenant.

Hopefully, these simple points will be helpful when making a decision on which property you want to invest in next.  Working with InvestorCompsOnline will give you access to solid real estate comps to get your business moving forward.

Beginning Investing

Beginning InvestingFor anyone who may be new to real estate investing, I want to show you how you can begin your journey. I want to help you to keep the inevitable risks to a minimum. Given all of the risks involved with real estate investing, it is low in comparison to other investing scenarios.

It is important to know as much information as possible in the beginning in order to protect yourselves.  A real estate investing program or real estate investing seminars are two great suggestions for beginners interested in real estate investing. You can also use the internet as a great place to receive and learn the skills you will need to have when making a real estate investment.

Purchasing bargain real estate is one of the best ways to make money. As a rule a property that is listed for 20% below its worth, is definitely worth a look.  If you make an offer, make sure you know how much the property will be worth once you’ve done the fix-up and flip.

If you follow these basics then you should have no problem getting started and making money with real estate investing. Keep in mind that it does take time and hard work to make it pay off, but it definitely will in the long run.

Buy Or Walk Away? | Part Two

Buy Or Walk Away?Last time, I discussed the challenge that investors face when considering foreclosure properties. I think it’s importance to consider the cost when stepping into a business deal. Let’s look at some other important aspects of foreclosures, like the physical shape of a property, as well as location.

When investing in foreclosures, you must consider the actual state of the house. Some foreclosures stand empty for years, resulting in costly damages that may outweigh the value of the home. Be smart and go through an inspection process, so be sure to hire on a competent inspector to determine what the issues are, then get a contractor in there to decide the cost of the repairs. Major appliances are a huge expense, as is new sheetrock on the walls, new flooring, and cabinetry.

Another important consideration when investing in foreclosure properties is the area itself. It is important to find out why the home found itself into foreclosure in the first place. There are situations when a house goes into foreclosure because of the lending practices used to sell it in the first place. Other times it could be the location of a property, meaning a decline of an area, and people have left because of crime or a lack of solid work. Taking these points into consideration can help shore up your investment.