Thanks to the explosion of the real estate market a few years ago and the amount of people who are now defaulting on their home loans, the real estate foreclosure market is booming. Unlike a decade ago when a foreclosure was almost certainly a broken down/condemned piece of real estate, now foreclosures are just as likely to be beautiful and well kept homes! This makes investing in foreclosed properties incredibly lucrative.
If you are interested in investing in foreclosed properties, here are a few tips to help you get started:
1. Do your research! Before you jump off the high dive, make sure you do your research on each and every property that you are thinking of investing in. If you can afford it, you should have each property professionally appraised before submitting an offer on the foreclosed property. Make sure that you aren't going to be investing in something that is going to be more of a "fixer upper" than you originally thought.
2. It is better to buy a foreclosed property at public auction. This is because sometimes homeowners who are facing foreclosure will take the money they make from selling it to you and, instead of using it to pay off their current home loan; they use it to purchase a new home. This means that, technically, the bank could still seize the house you just paid for and you have little chance of recouping your investment.
3. Investing in foreclosed property shouldn't be looked at as a full time job, especially if you are just entering into the field. It is best to start investing in foreclosed properties while you still have a full time job or some sort of steady income to ensure that you are still able to pay your bills while you work on your foreclosed property and wait for it to "flip."
Investing in foreclosed properties isn't for the faint of heart, but it can prove to be quite a profitable business! Make sure that you do your research and learn every thing you can about the field before you get started!