All that paper work required to settle the pre- foreclosed deal appears off-putting. But wait, before taking the final decision do not forget to consider the advantages of a pre- foreclosure transaction. Real estate guru Jeff Adams vouches for these deals and tags pre-foreclosure investment as a smart decision. These deals have high money and profit making potential. It is the buyer’s golden chance to get things finalized his way since the owner of the pre- foreclosed property usually wants to sell it before losing possession of the same.
Here are 4 reasons why pre- foreclosed property investment is a smart decision
1. It is a Profitable Deal
A pre- foreclosed deal results due to a troubled situation the owner (now seller) of the property is in. A new investor wanting to buy that property is therefore in a position to seal the deal on his terms. Pre- foreclosure properties are by and large available at a much inferior price than their current market value. So you end up buying the property at low rates and you can sell it at the current rates. The other option is to rent the property to gain good money and wait for the property rates to increase further. In either case, it is a win-win situation for the buyer of the pre- foreclosed property.
2. Not as Expensive as Buying New Property
Buying pre- foreclosures is the most ideal if you are interested in investing in real estate, but get dissuaded by the current property rates. Pre-foreclosed properties are available at much more affordable rates. You can thereafter work on making the house attractive and rent it at a good price. This way you own a property and can eventually use the proceeds to invest in a new property.
3. Quick Handing and Taking Over
A pre- foreclosed homeowner knows that his time to move out will come soon. It is a therefore a great gain for the buyer who can start using the property for his profit at the earliest. This reduces the time between the investment and the returns that it brings later. It is cash out- cash in situation for you. In no time you break even on the deal.
4. Open and Steadfast Inspection
The pre- foreclosed proprietor wants to hasten the selling process due to which he mostly goes to all lengths to please the buyer. You can take advantage of this by requesting permission to inspect the home even though current owners are staying there. Some arrangement regarding such an inspection can be worked out. This makes it easier for you to evaluate and assess the approximate overall profit after the purchase and subsequent selling of the home. This is critical data to make your investment decision
Investing in pre- foreclosed properties is a very wise step. Jeff Adams advocates acquiring the right pre-foreclosures as an extremely lucrative venture. Though it is a smart investment move, these investments require a thorough study of the property you are buying and the state pre-foreclosure laws. Jeff Adams and his experienced team are right here to help you.
