Real Estate is still one of the best ways to invest and with today’s market having an abundance of foreclosure properties here are some general suggestions to help you buy foreclosures and add to your investment portfolio.
· Be prepared to invest time into researching and preparation and it’s important to have patience when deciding to try and buy a property that is in foreclosure.
· Understand that in most cases, foreclosure properties will require work as the original owners have probably neglected their home. A new owner should be prepared financially to replace, repair and even rebuild.
· Researching is of paramount important to buying a good investment. It is important to understand the foreclosure laws of each state as they differ. If you’re planning on buying a foreclosed property in a state you are not a resident, you need to know what that state’s requirements are when dealing with foreclosure properties.
· If you’re new to real estate foreclosure investing it might be best to try and buy from the lender.
· Sometimes, the lender will offer to finance the property at a below the market rate or accept a low down payment. Lenders also often include title insurance.
· It is also a good idea to look for “hidden” foreclosure deals…these are homes that have not been previously owned and usually the bank has hired a real estate agent to handle the deal.
· If you’re a seasoned investor than buying a home just before it goes into foreclosure is a good strategy to use. Because the homeowner does not want to lose all of the equity in the property, he/she accepts a portion of the difference between the equity and the market value of the home.
· This pre-foreclosure purchase is not for the new investor and most definitely requires persistence and a thorough understanding of the foreclosure process.
If you’re looking for a foreclosure property, follow some of the suggestion written about in this article and you should be able to find a great foreclosure property for your investment portfolio.