There are thousands of properties on the market that get sold below value because of foreclosure throughout the United States alone. What does this mean for investors? That they need to be buying these foreclosed properties and cashing in on the potential profits. In the following article I’d like to tell you how to buy foreclosed real estate and a few simple tips to use when doing so.
We both already know that buying low and selling high is the key to making money with real estate. And, we both already know that buying foreclosed real estate can dramatically increase the likelihood of making that profit. The problem is that it isn’t always an easy task to locate and purchase foreclosed real estate.
Finding the foreclosed real estate to buy is one thing, but another is to be careful about what you are buying. That however, is a topic for another discussion, and I would like to give you a few tips on how to buy foreclosed real estate listed below.
First, you are going to want to develop contacts in your local real estate market. Whether it be real estate agents, appraisers, loan officers, etc. it is important to know people who work in the market everyday. These contacts will allow you to get a heads up on the newest foreclosed real estate and allow you a head start on the competition.
Secondly, you may want to invest in an online foreclosure website if you live in a metropolitan area. Chances are the bigger sites on the net will have great information about newly listed foreclosure real estate so that you can submit bids through their system. Most of the time their services are only a few bucks a month and can pay handsomely when you find the right property.
Third, you’ll want to watch your daily newspaper. Many times foreclosed real estate is auctioned on your courthouse lawn. This can be a great opportunity to bid for the property and get a stunning deal, especially if there isn’t a large turn-out. Always remember though, that when buying a foreclosed piece of real estate that you may not be able to view the inside of the property or have inspections, and may also be liable for other liens on the property. More about that in my other article
The last and most important tip when learning how to buy foreclosure real estate is that you study your market carefully. Pick-up the local real estate multi-list guide or publication and take a look at comparible properties. Even though it may seem like a good deal, you may never know until you thoroughly investigate the neighboorhood. Remember, location is key!