Homebuyers, first time investors, amateur investors and real estate moguls, there’s good news for you! 2014’s real estate market is booming with properties and favorable deals. The current environment is highly favorable for investment and if you’re lucky, you can find not just one but many steals easily.
Too good to be true?
It may sound unbelievable, but it is true! However, there’s no gain without effort and there is, undoubtedly, a good amount of effort involved in procuring the best deals for successful real estate investment.
Planning to invest in a foreclosure? Aspiring to make a good profit by purchasing property at a price lower than its market value and selling it for the current market rate? You’ll need a few tricks up your sleeve to bag the best deals.
Here are a few foreclosure investment secrets nobody told you about. With these in mind, you will slide through every foreclosure investment with ease.
- Skip Recently Listed Properties
Nobody in their right minds will just give their property away, especially if the foreclosure process has just begun. If you jump into a deal where the property has just been added to the market, you might end up paying a higher price as compared to what you would have paid had you waited a little longer.
Owners / lenders / banks are eager to get rid of properties which have been on their hands for longer than expected and are often willing to settle for lower price deals. Try your luck with such properties.
- Control your Bidding Urges
In an adrenaline-infused bidding war, you might get carried away and place a bid higher than the amount you’re willing to pay. In worst cases, your winning bid might cost you more than the profit you thought you’d make from the deal. It’s important to detach your emotions from the bidding war.
- Do your Research
You can’t take all the time in the world once you’ve found the perfect bargain as there are other vultures willing to jump the queue. However, you need to conduct the necessary research on the property before you jump on the bargain. Study the property, its market value, examine its condition, ascertain its need for renovation and calculate an approximate profit value before you set your bid.
- Secure your Funds
If you don’t have a fat savings account to fund your investment, you will need a financial strategy to help you deduce your source of funds.
- Make a Clean Offer
When making your offer, make a clean one because the less you ask for, the better chances you have to steal the deal. Unnecessary clauses which involve financial coverage for renovation and repairs might just lose you the deal that could change your life.
Foreclosure investing has a basic grounding principle – the deal has to be a win-win situation for both parties. With this principle in mind, it won’t be long before you become the next real estate tycoon.
