Pre Foreclosure home are very good investment options; yet there are several myths around this topic.
People around us have opinions; and we tend to get carried away by what others think without investigation ourselves. There are many myths floating in the real estate market about pre- foreclosure homes. According to real estate guru Jeff Adams, all you have to do is only know what everybody is talking without necessarily believing everything blindly.
Here are 6 common pre-foreclosure investment myths that stop you from making a profitable investment. Jeff Adams shatters these myths for you and helps you make more money from real estate investment.
1. Pre- Foreclosure Investment Makes Huge Money
It is right that pre- foreclosure homes bring in good profits but expecting one deal to turn around your life is not correct. Repeated successful pre- foreclosure investments bring in good money for sure. Many investors think it would be a life turning deal for them and tend to invest a large amount of money by borrowing from various sources just to get hold of the pre-foreclosure home they are eying. And a lot of times, paying this loan back leaves the investor with very little profit.
2. No Need to see the Pre- foreclosed Home
This is common mistake made by many investors. Not inspecting the Pre- Foreclosed home can marginalize your profits later on. An advance estimate of the cost involved in repairs is of great help and gives you approximate expenses. This can help you plan well and not lose on your share of profit.
3. Pre- foreclosure Homes are at a Disadvantage
This is not true. Pre- foreclosed homes are not at any disadvantage. They are like any other real estate investment. In fact Pre- Foreclosure homes promise quick money. They are second to none when it comes to making real estate investments.
4. Pre- foreclosure Deal Makes Money Super Quick
It does make money but not always at a quick pace. Losing your patience at the wrong time and selling it at a compromised rate for quick money is not advisable. Don’t believe it when people say it makes money over night. Take it your way, invest to get the best repairs done to increase the value of the property and hold it until you get the right buyer.
5. Trust your Agent Completely
A specialized pre- foreclosure home agent knows the nuances of this field best. His expertise in the field gives him an edge. However that does not cut down your work. You have to conduct research your way. Do not rely on the agent entirely, take his help and do the rest. A poor deal will not affect the agent it will affect you!
6. Sell it Quick
If 6 out of 10 people are selling the pre- foreclosed home they bought in a short span, it does not mean you should too. You might just lose on some good money by doing so. Every deal is different and may require a customized approach to make profit.
These myths lessen your chances of bigger and better profit opines Jeff Adams. Handle your deal your way and enjoy the pampering profits.
