Bank foreclosures are a good way to buy a cheap house as most of the times the bank will recover less than the amount they are owed. As such, the investor’s margin for profit are larger than with other similar properties in the same area. Making sure that you learn about foreclosure opportunities, in time, will lead to better chances of buying a property for below market value and having significant profits at the end of your investment. Most of all, however, you shouldn’t feel pressured to buy until you have done your research, you know the neighborhood, and understand rehab costs.
These days, bank foreclosures are common. While many dread this type of financial recovery process, it is sometimes inevitable and it is also a good business opportunity for investors. When you see a bank foreclosure, there may be an opportunity to purchase the house at below market value in order for the bank to get their money back quickly.
It is a good idea to follow the auctions of bank foreclosures or direct sales as these provide a good chance for acquiring property at very good prices. Some, however, are hesitant for these transactions for fear of the lengthy bank contracts and legal work may need to be met before you can acquire the property. However, the best thing to do is be an intermediary – that is buy from a company like Realnet who works with attorneys and deal in bank foreclosures in bulk and sells them without any renovation or other interventions.
The cost for such bank foreclosures will generally be much lower than that of retail housing. Realnet can make the process as easy as buying a retail house, but you can expect to pay 40%-60% below market value. Once you’ve received the property from Realnet, you can restore it and market the house to retail buyers or leave it to Realnet Property Management to find a tenant for you. Most bank foreclosures end up selling for a lot more after they have been renovated and tenant occupied so they make profitable investments.
Some measure of precaution is always warranted, no matter whom you choose to deal with. When you choose to work with Realnet, you are granted access to a team of seasoned Real Estate Investment veterans. We have experts in Property Management and construction, as well as a top notch title company. When investing in Real Estate, you need to pay the same amount of attention to the details of the house, to the neighborhood, and the return on investment. In the end, people are interested in buying investment property that would make a good business opportunity and for every investor that has to be a primary focus.