Foreclosure properties can make great purchases. If you are looking for a long-term investment or properties to flip, consider focusing on foreclosures. Below are some ways to find them.
Begin by finding a local agent specializing in the area of foreclosed properties. The agent can provide all the information you’ll need before you actually make a purchase. This is especially relevant if you don’t know a lot about this type of real estate venture.
Be prepared to compete. The purchase of foreclosed properties is extremely competitive in some markets. Buying such a property does not guarantee you will get rich, but if you know what to look for and how to flip properties successfully, you can make some definite money.
Choose your foreclosures carefully. Sure you may get a particular property at a great price, but is it really worth it? Some properties need a lot of work and if you aren’t prepared to either do it yourself or pay someone to do it for you, the foreclosure you just bought will sit for a long time. This can make it more difficult to sell because it may wind up needing even more work.
Learn your market. Your agent will show you the ropes, but the more you know and learn as you go along the better. This will also help you find other foreclosures in the future. Knowing the process and how it all works will enable you to depend less on an agent and more on the knowledge you have gained.
Check with the Department of Housing and Urban Development website, www.hud.gov. Here you will find a ton of useful information on homes available in your area or in the one in which you are looking to buy. The site updates this information weekly so check often and you just may find the perfect properties.
Leave a wide margin for error. It’s possible to make at least a 15 to 20 percent return on your investment, depending on the particular market and how many properties you can actually buy and sell each year.
Start out slow and work your way up. Don’t buy too many properties at once. Instead, buy one, sell it, then use the money you have made to invest in the next purchase. Before long you will buy and sell several properties in quick succession and your house flipping business will begin to take off.
If you are searching for a foreclosed home in which to live, make sure you will be able to perform all the necessary repairs, if there are any. This will help you get into the home much more quickly once it is purchased.
Buying foreclosed properties can be worthwhile, but as with any other real estate investment, there are definitely risks. Know these risks before entering into such a venture and you’ll be that much closer to making a profit.