The housing market is ripe with foreclosure investment property, the sad fact is many people are over extended and cannot meet their payments anymore. They are desperate to retain as much of their lifestyle as they can, and realizing that no matter what they juggle, they are going to lose their house. What makes matters even worse is the foreclosure looming on the horizon is going to ruin their credit rating and keep them from getting a new mortgage loan when their financial situation improves.
They are franticly searching for a way out that can at the least save their credit rating and preserve their future, and that is where the pre-foreclosure investor can help these people salvage their good name and credit rating by taking over the property and relieving them of the debt, they win by getting out from under the debt and saving their credit rating and you the investor win by getting a property below market price.
The most important rule of thumb you have to remember no matter how much potential you see in a property is, a property is only worth as much as someone else is going to pay you for it. When your out investigating potential investment properties do your due diligence and leave your emotions out of the equation. For example you might run across a beautiful piece of property with a wonderful view and plenty of acreage to sub divide into smaller lots, but if it’s in an area that has very little in the way of employment who are you going to sell those lots to.
Foreclosure properties can be very lucrative when done correctly, but before jumping in study the subject and get a good understanding of what to look for, and what you should look-out for. The Ultimate Real Estate System by Robert G Allen is a good course I have read about real estate investing. I read that course from start to finish and still find myself giving it another read once in awhile because every time I read it something new turns on in my head, and I find a new way of looking at foreclosure investing that I thought I had all figured out.
A real estate investor has to look at every part of a piece of property to determine its value. Finding an experienced real estate agent can be a big help by providing a list of the available properties and the assessed values. A higher assessment is better for the long term return provided nothing drastically changes in the neighborhood to lower values.
A trip to the local Chamber of Commerce can lead to insight on where the city intends to expand or develop businesses. Properly zoned land purchased right outside of a growing city, provided the long term industrial growth looks positive, can be an investment bonanza when later developed or turned into commercial real estate. The real estate investor has to be able to look at the overall picture before deciding where to put his or her money into. When it comes to the monetary investment, it is better to not borrow too much. Financial advisors can advise how much money to put into a property without risking personal financial hardships.
This is especially true when it comes to rental properties. Far too often a person can find themselves upside down when forgetting to factor into account all of the little expenses that can add up for a landlord. Not only are there times when the property will be vacant but there are property taxes and insurance to maintain as well as the upkeep of the property. Finding a good tenant who pays their rent on time can be difficult so there needs to be money set aside to take this into account. For more info on foreclosure investment property click to foreclosurehowtobuy.com
You should also know which renovation and home repair choices will make the value of a home go up or down. Many of the things that a real estate agent will point out to potential buyers when it comes to homes for sale in your city may be the things you’ll want to address as well. For example, making a ‘great room’ in the main area in your home may not be a good idea, since it will create more traffic in the home, which results in more wear and tear. Also, a house’s value will go up over time if a multi-car garage is not connected to the home, since the home will have more living space per square foot. If you want to start learning more about Foreclosure investment property, or want to know more about real estate investing, you can visit sites like www.foreclosurehowtobuy.com for articles written by experts in their fields.
Author: Steven McCarthyThis author has published 3 articles so far.