The recent economic climate is providing great opportunities for smart investors. Right now there is an oversupply of empty, under-priced and foreclosure listings of homes in nearly every city in the United States. These properties are available at every price level and in every condition.
Now while the real estate market may have recently been in a downward trend, it is highly unlikely that it will continue its downward trend indefinitely. Economies and markets do have cycles and the current down trend will eventually turn itself around. When it does the person who invests now and takes the opportunity of these foreclosure listings will be the one ready to take advantage of the rising prices. Now is the best opportunity to purchase real estate and especially foreclosure listings because basically real estate is currently "on sale".
There are a few ways to purchase these under-priced properties and foreclosure listings. Right now there are homeowners who are essentially "upside-down" on their mortgage. In a pre-foreclosure sale a lender will allow a homeowner who is behind on their payments to sell the home and pay the proceeds back to the lender. If the home will only sell at a price that is less than what the homeowner owes on the mortgage the case is called a "short sale". There are many short sale opportunities available right now. Look at your local MLS or contact a realtor.
If you are not able to have the opportunity of a short sale the next step in finding the best foreclosure listings would be to go to a foreclosure auction. The foreclosure auction is usually held at the local courthouse of the county where the property is located. The property is then sold to the highest bidder and the selling prices are often very acceptable. As an investor you may be able to make a good profit margin when you use this method of purchase. The only caution to be wary of is that these homes are sold "as is" without the possibility of any inspections, any and all repairs will be the liability of the investor.
If the bank has to take the property back into foreclosure they will want to get the property off of their books as soon as possible. Therefore they are often very motivated and will drop the price on these foreclosure listings until they sell. Many times they will use a realtor so check your local MLS. Occasionally they will do some repairs but often they will sell the property "as is". Do your due diligence inspections before you purchase.
An advantage to investing in real estate and foreclosure listings is that even if the market continues to go down you will never lose your entire investment. Unlike making a bad investment in the stock market, real estate will always hold some value. Prices on real estate will fluctuate at times but the prices will come back up. Foreclosure listings and real estate will always be a smart investment if you invest wisely.
Whenever you purchase real estate and no matter how or whom you buy it from you should always make sure and complete your own due diligence. You need to make sure that applicable inspections are completed and that your funds are in order if you use bank financing or cash.
But now is an an opportune time to invest in real estate and foreclosure listings in almost any market in the United States because the prices are low and the opportunity for profit is very good.
Now while the real estate market may have recently been in a downward trend, it is highly unlikely that it will continue its downward trend indefinitely. Economies and markets do have cycles and the current down trend will eventually turn itself around. When it does the person who invests now and takes the opportunity of these foreclosure listings will be the one ready to take advantage of the rising prices. Now is the best opportunity to purchase real estate and especially foreclosure listings because basically real estate is currently "on sale".
There are a few ways to purchase these under-priced properties and foreclosure listings. Right now there are homeowners who are essentially "upside-down" on their mortgage. In a pre-foreclosure sale a lender will allow a homeowner who is behind on their payments to sell the home and pay the proceeds back to the lender. If the home will only sell at a price that is less than what the homeowner owes on the mortgage the case is called a "short sale". There are many short sale opportunities available right now. Look at your local MLS or contact a realtor.
If you are not able to have the opportunity of a short sale the next step in finding the best foreclosure listings would be to go to a foreclosure auction. The foreclosure auction is usually held at the local courthouse of the county where the property is located. The property is then sold to the highest bidder and the selling prices are often very acceptable. As an investor you may be able to make a good profit margin when you use this method of purchase. The only caution to be wary of is that these homes are sold "as is" without the possibility of any inspections, any and all repairs will be the liability of the investor.
If the bank has to take the property back into foreclosure they will want to get the property off of their books as soon as possible. Therefore they are often very motivated and will drop the price on these foreclosure listings until they sell. Many times they will use a realtor so check your local MLS. Occasionally they will do some repairs but often they will sell the property "as is". Do your due diligence inspections before you purchase.
An advantage to investing in real estate and foreclosure listings is that even if the market continues to go down you will never lose your entire investment. Unlike making a bad investment in the stock market, real estate will always hold some value. Prices on real estate will fluctuate at times but the prices will come back up. Foreclosure listings and real estate will always be a smart investment if you invest wisely.
Whenever you purchase real estate and no matter how or whom you buy it from you should always make sure and complete your own due diligence. You need to make sure that applicable inspections are completed and that your funds are in order if you use bank financing or cash.
But now is an an opportune time to invest in real estate and foreclosure listings in almost any market in the United States because the prices are low and the opportunity for profit is very good.
About the Author:
Austin Butler is currently investing in foreclosure listings in the Southeast United States. So far he is extremely pleased with the results.
Hi,
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