* Preforeclosures
* Foreclosures
* Homes for Rent to Own
* Short Sales
* Auctions
* Single Family Homes for Sale
Author: Kris Koonar
Now is the perfect time to invest in preforeclosures. With the sub prime crisis raging on, there are a lot of properties coming into the market, where the owner was unable to make his mortgage payments on time. Banks then auction these types of properties. Preforeclosure is when you can purchase a property before it reaches the auction block.
During this preforeclosure period, you just might be able to get a good bargain, and you could then either sell it at a higher price or could rent it out thereby creating a fixed source of income. You can search for these properties by either selecting notices, which are printed by banks in newspapers or you could contact the local government office or courts from where these notices are issued. Banks and other financial institutions normally want to avoid getting saddled with properties and hence are happy if somebody else starts paying off the stuck mortgage.
So, it does not matter to them if you are paying off that loan as long as you are consistent in your payments. The owner of the property is also stuck and so, he too would be happy to transfer the property to you and ease himself out of the financial mess in which he is stuck. On an average, you should be able to make around 20% to 30% profit out of the deal. However, competition has increased now, and you might have to compromise on that figure sometimes to get a deal. Also, find out if there is any other lien attached to that property because, they too will have to be involved in the deal.
You could also take the help of a real estate broker who is experienced in such matters. He would have the knowledge of the current market rates of that neighborhood and could guide you on how much less to offer to the owner of the property. His contacts could also help you in looking at a wide range of properties in the preforeclosure market. One more advantage, which you will have, is that you will not have to run around to arrange for a loan on that property. You will just have to take over the existing loan and continue paying the installments from where the previous owner left off. You will still remain eligible for all tax benefits and depreciation on that property.
Once you get enough experience in purchasing preclosure properties, you can then start searching and negotiating on your own. Slowly, you will be able to increase your profit margin on every deal you make. Buying during the foreclosure period is better because once that property is on the auction block, then it is very difficult to make fast decisions during the actual auction regarding the price to be offered.
So, do not feel guilty of stepping in to buy a property from someone who is hard on luck, but rather think of it as stepping in to help out someone who needs help. Making a profit out of that move is the icing on the preforeclosure cake.
Article Source: http://www.articlesbase.com/real-estate-articles/great-reasons-to-invest-in-preforeclosures-305257.html
About the Author:
Real Estate Investments in 14 cities are available now. These investment homes cannot be found under a MLS listings as they are part of our private wholesale investment home inventory. To see how we make Real Estate Investing easy visit our website at http://www.realnetusa.com .
Preforeclosure Investing: A Pocket Summary
By Ada Smith
Banks don't want to have foreclosure property on their hands. What this can mean for you is a huge real estate investing opportunity: buying properties that are in preforeclosure.
A preforeclosure is a property on which the bank has begun foreclosure because the owner has missed several mortgage payments. When the bank initiates foreclosure on a property, you can buy it up to the day of the foreclosure auction. Done correctly, buying preforeclosures can be a profitable real estate investing venture.
Buying a preforeclosure has many benefits:
- A low cash down payment on a preforeclosure is possible if structured properly.
- You have ample time to research preforeclosure properties -- you can buy a preforeclosure property up until the day of the foreclosure auction.
- Unique and flexible sales agreements are possible.
- Acquiring a preforeclosure property affords you a real estate investment at a discount averaging from 20% to 35% off market value.
- When you buy a preforeclosure, you help save the homeowner's credit by avoiding a foreclosure auction.
- It is sometimes difficult to contact the owner of the preforeclosure property.
- You will usually have a lot of competition -- it's no secret that preforeclosure investing can be lucrative.
- The courthouse research to find preforeclosure property can be time-consuming.
- You may need to negotiate with any holders of liens on the preforeclosure property.
- Locate loans in preforeclosure.
- Contact your county court.
- Search for County Recorder preforeclosure data online. A free resource to use is http://www.netronline.com.
- Lo OK in the "Legal Notice" section of the newspaper for foreclosures and upcoming foreclosure auctions.
- Evaluate and narrow selections to pursue
- Inspect the preforeclosure property
- Evaluate the property owner's needs
- Determine the market value of the preforeclosure property, fix-up costs, potential sales price and profits
- Arrange default work out by negotiating with the owner and the lender
- Close on the property, repair and resell it quickly.
Ada Smith is a real estate investor who has applies the principles described in several pre-foreclosure investment courses
Article Source: http://EzineArticles.com/?expert=Ada_Smith
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What Are Preforeclosures?
By Kevin Simpson
For a buyer who is looking forward to affordable real estate investment solution, Preforeclosures are the best way to go for cheap realty investment without burning a hole in one's pocket. Such an investment makes sure that you have the facility of availing cheap homes. While going for Preforeclosures homes, it is essential to have readily available funds as the seller of such foreclosed real estate wishes to make a prompt final deal.
In case you are deficit of cash, make sure you have pool your resources and take a loan that helps you in buying the Preforeclosures real estate. In case the real estate has already under the default due to non-payment of outstanding loan by the debtor to creditor, one has to check with banks and local courts to get current update about real estate solution. To know more about the Preforeclosures estate, it is always advised to check out the real estate personally and check out its fixture and fittings and other details that makes it a perfect real estate investment that too at affordable price.
In case the home comes with good amenities and perfect fixture and fittings, it is probably the best deal that does not require huge expense in renovation and other expensive details to name a few. Check out the neighboring locality to get the good idea about the real estate. For all those who wish to buy Preforeclosures homes, it is mandatory to check out the real estate personally to get the best idea.
Usually, foreclosure is a lengthy process and in order to save one from a tiring process, many debtors go for Preforeclosures sale that is often known as short sale where a debtor sells off the real estate to realize the bad debts to pay off the creditor. This is the best way to garner initial debts while saving oneself from the long drawn process of Preforeclosures that might take months altogether.
To know more about all those real estates that wish to sell off as Preforeclosures where the creditor does not wish to retain the property, one can check out the Preforeclosures listings from banks and other financial institutions that makes sure one gets the benefit of buying affordable real estate solution. For all those wish to buy affordable real estate solution, it is essential to check out the Preforeclosures that come at affordable price. In addition, one should always keep in mind the fact that one should stay away from brokers and realtors that try to sell Preforeclosures at inflated prices.
As the owner of such Preforeclosures wishes to sell off the property in order to garner bad debts, the price of Preforeclosures is not much higher. From an investor's point of view, these Preforeclosures are much better than buying a new home that requires huge investment. So, get ready to invest in the best Preforeclosures real estate and get your dream home at affordable price. Know more about Preforeclosures and get the benefit of buying affordable reality solution.
Search preforeclosures by state or get more information on preforeclosures at ForeclosureListings.com.
Kevin Simpson, GM Sales & Marketing, ForeclosureListings.com
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