Foreclosed Homes For Sale is a great way to purchase a single home, multiple properties, start a real estate portfolio or add to your investment or income streams.
The money you save on the purchase price versus the FMV Fair Market Value can be astounding.
Oftentimes, informed buyers can cut deals and save anywhere from twenty five percent to seventy percent below the fair market value of similar properties in the same area.
Suffice it to say, that such discounts not only lead to instant savings, but they also hedge the buyer against inflation and afford the potential for a dynamic long-term profit.
However, there are some caveats when it comes to foreclosed homes for sale.
In all real estate, as with any investments, there is no such thing as sure bets.
Meaning, you have to do your homework on all Foreclosed Homes For Sale prior to sealing the deal.
Here are three rules buyers of foreclosed homes for sale must take into consideration before they start and complete any purchase. Follow these rules and your success is virtually guaranteed even though there are no sure bets when it comes to investing!
Rule #1 For Foreclosed Homes For Sale
If you are looking at a foreclosed home for sale, you need to know what your game plan is before you complete the purchase. Never buy a property with no game plan in hand. Are you going to live in it? Or, are you going to rent or lease it out?
If so, what is the rental market like? Can you undercut the market and still make a profit? Oh, and the biggie, what kind of condition is the property currently in? Will it require any repairs? If so, how long will the repairs take and at what costs?
If you are going to flip the property, what is the market like in that area? How does the house you intend on buying stack up against the competition? How long can you hold the house without losing money or losing your mind?
If things don’t go as planned, can you quickly wholesale the property and still make a profit? Foreclosed Homes For Sale can be extreme moneymakers but only when you do your due diligence and prepare properly. Otherwise, the truth is; you just may lose your shirt!
Rule #2 For Foreclosed Homes For Sale
Your team should include but not be limited to: a licensed real estate attorney, real estate appraiser, real estate inspector, insurance agent, real estate broker, real estate agents, accountant, plumber, electrician, carpenters, roofers, painters, landscapers, laborers and material suppliers. These are people that you need to know. These are individuals that should be programmed into your phone who welcome the opportunity to work on deals with you.
When dealing with foreclosed homes for sale, you don’t put your real estate brainstorm as you go along; you get these people in pocket before your first deal. Just think, a real estate attorney will be able to scrutinize the legal aspects of the deal you may have never considered; aspects that could save you thousands of dollars.
The same goes with having craftsmen lined up and ready to roll. That means you can quickly get any property prepped and ready to go! Having a real estate broker and agents on your team means that you have a way to quickly market your properties. Once you start working with various providers and they see your professionalism, you will have endeared a team that has your back!
Rule #3 For Foreclosed Homes For Sale
By becoming part of a real estate investors association, you are able to connect up with other like-minded investors. In addition, you avail yourself to an almost unlimited number of critical real estate investment resources.
Virtually every state has a Real Estate Investors Association. Once you join, you will have access to all types of real estate professionals who live to work with investors. In addition, you will meet people you can network with and do deals with.
You will find funding sources and I would be remiss if I didn’t mention the lists. If you want lists of properties in your area and I’m talking about the hot deals, a local real estate investors association is a great place to find them.
REIAs have their fingers on the pulse of foreclosed homes for sale, REO properties, short sales, pre foreclosure deals, bank owned homes, apartments, industrial properties. If you follow those three rules, you will succeed at investing in foreclosed homes for sale.
Joel Marks is a real estate investor who invests in Cheap Houses For Sale, Foreclosure Homes, REO Properties and markets properties by selling Lease To Own Homes and Owner Financing properties. He specializes in helping Americans avoid foreclosure. If you are in foreclosure or facing foreclosure, help is available.
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