5 Great Tips that Will Help You Profit in the Current Financial Climate.
Lance Thorington
The current financial climate has lead to an increase in mortgage defaults which puts the foreclosed properties on the market, often at a price well below market value. This would seem an ideal time to get into property investment, but before you jump straight in, there are some important things you really need to know. We will discuss these in this article.
Tip 1: Buying a foreclosed property is little different to buying any property, at any time. You need to research things like the best areas to buy property, property values and predictions, what you can afford, what you intend to do with the property etc. If you are buying as an investment, find out about the rental market in different areas, expected rent return, demand for rental property. Complete all your research before you start looking at properties, keep your list of results with you and refer to them when you are considering individual properties.
Tip 2: Organize your finance before you start to look at any property so that you are qualified to buy when you find the ideal property. A pre-qualified buyer has greater bargaining power when offers are being negotiated. Look for a lender who is experienced with foreclosures and understands the special requirements for this type of sale. When you are properly pre-qualified, there is less stress with the buying process.
Tip 3: Understand the laws and the process with buying foreclosed property. You need to know how the property is being sold - by auction, private treaty, open market etc. Make contact with a real estate agent who specializes in foreclosed property sales and increase your advantage. Look out for Sale by Owner properties in which you negotiate directly with the seller.
Tip 4: Stick to your game plan. If you have decided you want a four bedroom, two bathroom, double garage home, don't even look at a three bedroom, one bathroom, single garage house. The reason you spent time on research was to pre-determine what you wanted to buy, so keep to your plan. If there comes a time when you realize that your original decisions might need reviewing, do this at the appropriate time and not at an auction! You need to be happy with your purchase after the sale has gone through and there is no need to rush the process - there will be many more properties for sale.
Tip 5: Searching, short-listing, viewing and negotiating is a process that is the same no matter what type of property you are buying, the only difference being that you will be targeting foreclosures. It can be a long or short process but it takes as long as it takes. Don't rush into buying the first property because it seems like a good deal. When you find the right property at the right price, negotiate a better deal. Consider taking over the current mortgage, if you are dealing directly with the bank - they will look favorably at this at may lower the price.
Lance Thorington
The current financial climate has lead to an increase in mortgage defaults which puts the foreclosed properties on the market, often at a price well below market value. This would seem an ideal time to get into property investment, but before you jump straight in, there are some important things you really need to know. We will discuss these in this article.
Tip 1: Buying a foreclosed property is little different to buying any property, at any time. You need to research things like the best areas to buy property, property values and predictions, what you can afford, what you intend to do with the property etc. If you are buying as an investment, find out about the rental market in different areas, expected rent return, demand for rental property. Complete all your research before you start looking at properties, keep your list of results with you and refer to them when you are considering individual properties.
Tip 2: Organize your finance before you start to look at any property so that you are qualified to buy when you find the ideal property. A pre-qualified buyer has greater bargaining power when offers are being negotiated. Look for a lender who is experienced with foreclosures and understands the special requirements for this type of sale. When you are properly pre-qualified, there is less stress with the buying process.
Tip 3: Understand the laws and the process with buying foreclosed property. You need to know how the property is being sold - by auction, private treaty, open market etc. Make contact with a real estate agent who specializes in foreclosed property sales and increase your advantage. Look out for Sale by Owner properties in which you negotiate directly with the seller.
Tip 4: Stick to your game plan. If you have decided you want a four bedroom, two bathroom, double garage home, don't even look at a three bedroom, one bathroom, single garage house. The reason you spent time on research was to pre-determine what you wanted to buy, so keep to your plan. If there comes a time when you realize that your original decisions might need reviewing, do this at the appropriate time and not at an auction! You need to be happy with your purchase after the sale has gone through and there is no need to rush the process - there will be many more properties for sale.
Tip 5: Searching, short-listing, viewing and negotiating is a process that is the same no matter what type of property you are buying, the only difference being that you will be targeting foreclosures. It can be a long or short process but it takes as long as it takes. Don't rush into buying the first property because it seems like a good deal. When you find the right property at the right price, negotiate a better deal. Consider taking over the current mortgage, if you are dealing directly with the bank - they will look favorably at this at may lower the price.
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