Six Smart Strategies to Select a Foreclosed Property
If you are a savvy investor then real estate would be an investment worth considering. It is a relatively safe investment in today’s market with the land prices appreciating. One of the best ways to procure property at a cheap rate is to buy it during its foreclosure. In other words, the owner of the house is unable to keep up with mortgage payments, so to realize the money; the lending party sells it to the person making the best offer.
This means that if you are looking to buy a house – especially a second house or one for investment purposes, then this is a good option. If it is your first time buying a foreclosed house, Jeff Adams, real estate guru puts together a list of easy ways to look for a pre-owned home.
1. Talk To Your Realtor
While looking for houses may be a part time job for you, realtors do this day in and day out. This is their bread and butter. Therefore, the first step is telling your realtor the exact specifications of the house you are looking for. For example, if you are living in Maryland where it snows four months out of 12, you may want a winter home in sunny Orlando!
2. Drive Through The Neighborhood
Jeff Adams recommends you buy local, for obvious reasons – you know your own neighborhood better than others. Drive around and take different paths every day. You are bound to come across signs that announce a particular property has been seized. After that, you just need to ask a few friendly neighbors and you have a solid lead.
3. Auctions And Sales
Often, an auction is a sale mediated by the lending party. There is usually more than one party interested in the property and bidding wars begin. This is sometimes for higher prices or sometimes to reduce the amount of work the lending party has to do before the actual sale. The bidder that has the most to bring to the table is the new proud owner of the property. In an auction, you do not have to bargain with the house owner. It is best to bid through your realtor as your lack of experience could be exploited.
4. Register Online
There are many portals online where you can register to get updates on any property that is being foreclosed. However, you must treat this medium with a degree of caution as the images and information put on the internet can be falsified and the reality could be an altogether different story. So when you get a lead online, make sure to follow it up with a physical house inspection before considering the property.
5. Be Selective
Don’t get a house in a neighborhood where there have been a lot of foreclosures. It could mean the area is in trouble – crime rates could be up, no access to proper facilities or even rampant unemployment and bankruptcy. Be smart about the location as this will be the most important decision of a foreclosure investment.
6. High Maintenance
Foreclosed properties have a notorious reputation for needing a great deal of maintenance, so be prepared to put in your money’s worth before the property becomes habitable. Do a thorough home inspection before closing the deal and if the damage is too extensive, it can be negotiated in the contract.
The smartest strategy in foreclosure investment is to not do it alone. With Jeff Adams and his team at the ready, there is no need to anymore. Sign up for a session with him and he will be happy to answer all your questions and impart some practical wisdom that is essential to all real estate investors.
