Are you a new investor? If so, you have probably taken the first steps to being a successful investor. Now you are ready to take the final steps finding property and investing. Bank owned foreclosure property should be on the top of your list. This particular property is owned by the bank and is sometime referred to as REOs (Real Estate Owned). There are great advantages to purchasing bank owned foreclosure properties, and it seems that every investor wants to get a piece of this market. Consider purchasing a property listing. This list will contain information regarding properties that a bank owned, the asking price of the homes and other valuable information.
Before you go out and get started investing in bank owned foreclosure properties, you need to know what the advantages and disadvantages are. Otherwise, you could make a seriously bad investment and lose a lot of hard earned money.
The most obvious advantage is the asking price by the bank for the home. The home will be marked substantially lower than market value. This does not necessarily mean the home is in bad condition or not worth investing in. It is marked down because the bank wants to get rid of any foreclosed property they own as quickly as possible through a quick sale. The bank asking price for the property will be substantially below market value in order for this to happen. This is a great opportunity for an investment and hopefully the investor can resale the property and make twice that amount in return.
However, there can be a substantial downfall to purchasing bank owned foreclosure property.
Most individuals do not purchase anything without inspecting the item. If you went to a store to buy new clothes, even if the clothing is on the clearance rack, you would inspect for flaws. Well, foreclosure bank owned property is typically sold as is. If you do not have the opportunity to inspect the property first any errors to the home will become your costly expense. This is truly one great disadvantage. Most home owners who lose their home are furious. They may have invested thousands of dollars into making the home large by adding rooms or an extra bathroom and due to unseen circumstance have now lost their home. Some will go as far as damaging the home or taking everything they have put into it out. New sinks, ovens, ceiling fans, toilets and more. Its theirs and they want it. This leaves the home with substantial damages, costly damages.
Some states require the bank to provide all buyers a disclosure with a summarize discovery of property damage. Such as, damage to the roof, plumbing issues or electric problems. This disclosure is valuable to investors and home buyers alike. Discuss this option with the bank that you are working with. If they are not lawfully required to provide you with a disclosure ask if you are allowed to have the home expected and how much time you have to do so. Some bank owned properties are not available fore inspections or your viewing. If this is the case it may be wise to just drive around the neighborhood of where the property is located. Talk to neighbors and get an idea about the people who once lived there. You never no, someone may have seen the property before repossession.
However, you need to remember that investing comes with its advantages and disadvantages. This is a risk most investors are willing to take, because the rewards are well worth the investment.
Yes, it is possible to make good money by investing in foreclosure properties, but you need to know what to do or you can lose a lot of money quickly. For more information, go to http://www.wcf-ltd.com/foreclosure/ to learn some great techniques to save money when investing in foreclosure properties.
Source: www.articledashboard.com
