Five Tips by Jeff Adams for Successful Foreclosure Investing

The 2014 real estate market in foreclosures is booming. With a steadily improving economy and rising property rates, small time investors like home buyers and amateur investors have a very good chance of finding great deals. Banks are scrambling to unload their inventory and properties are available in a wide range of sizes and prices.

Investment expert Jeff Adams states that smart investors can easily invest in two or three more homes, provided they know just how to work the foreclosure market. This means learning the foreclosure market and using these few tricks to bag the best deals available.

Tip #1 – Avoid Recently Listed Properties and Too Old Properties

Ideally, investors recommend choosing properties that have been with banks for a year or two. Avoid old homes or so-called ‘zombie homes’ that have been on the market for a very long time. These homes are usually decrepit and unless you have the time and money for renovation; they are a bad investment option.

Similarly, homes that are still undergoing the foreclosure process in a judicial state are not good investment options. Jumping in to a deal prematurely will result in you paying much more than the market rate.

Tip #2 – Set a Budget and Stick to It / Control Your Emotions

With so many properties on the market, it is easy to get carried away. Industry pundits state that having a budget is almost mandatory. Always keep this price in mind while bidding. Foreclosed homes always require a little repair and going over budget may make the property too expensive to sell or rent. First time buyers may also get emotionally attached to sales but professionals advise caution. If the property is not in your budget, walk away immediately.

Tip #3 – Make Clean Offers

When you find an affordable property, stick to the basics. Banks prefer quick and simple deals and they will choose buyers who push the deal through quickly. Do not ask for financial coverage for renovation, incidental repairs, etc. Banks sell the property as-is and they will not do any repairs to the property. Try to negotiate with a bigger down payment and a larger deposit. This makes your offer stronger and banks prefer people who pay cash.

Tip #4 – Always Do Your Research

In real estate, everything is about location. Make sure you research the state, city, neighborhood, and community you are investing in before purchasing anything. If possible, drive through areas, visit the homes, and talk to neighbors or previous owners, before you purchase property.

Tip #5 – Learn About Foreclosure Investing

Dealing in foreclosed properties is simple but there are several rules and regulations that have to be met. Before you actually jump into the market, make sure you learn about the foreclosure process and take a few real estate investment courses. It is always better to be safe and informed, rather than cheated and sorry!

It’s easy to make a profit in this market by flipping properties or just by renting out newly-renovated foreclosed properties, says Jeff Adams, the #1 real estate trainer. However, in a market flooded with foreclosures, it all comes down to a single mantra; maximize your returns while minimizing the risk. With that in mind and with these few tips, you should be able to launch your real investing career quite successfully.

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