How to Make Money with Foreclosures
There are as many ways to make money in real estate as there aret ypes of investors. What is important is to find the style that suits you and your goals. To do this you must practice a simple principle, "begin witht he end in mind'
Are you looking for a quick flip? Would you like to get into a positive cash flow situation? Or are you goals more long term?
Identify your strengths
Investing in Real Estate is different than investing in stock or bonds, in that you are getting something real, a house (usually and property), which means that you are going to have to physically take care oft he property. Are you an expert plumber? Do you enjoy roofing? Maybe you hated rywall work. Maybe you like restoring old homes? If you play to your strengths than you will have fun and make money.
Have a vision
I remember one client who had the vision for every property we looked at. He could see what other people couldn't, how moving a wall, or making small changes to the layout could improve the functionality and thereby the overall appeal of the property.
Be ready to make a quick decision.
When we are talking about huge returns there is competition.Investors need to be able to make a decision quickly; this means having your financesi n order, knowing general terms of how much things cost to repair and how much you can afford.
Take the time to do additional inspections
Do your due diligence, most all the bank owned properties will say you are buying the property as is, this is language that is in all of our real estate contracts, it does not mean that you cannot do a complete inspection of the property. This is a buyers expense, so it is important to have the property under contract while you do your due diligence to uncover latent defects and or anything else that could be wrong
Keep an eye on the market
These listings can go pretty quick so have your finger on the trigger , meaning be ready to make a decision. Expect competitive bidding. Most all the websites that offer inside info are not worth subscribing to, they draw on public records. Just because a house is foreclosed on zillow doens mean its ready to sell.