6 Considerations For Locating A Great Foreclosure Investment Property
Finding a good foreclosure investment property is about more than grabbing the first bargain at auction you see. A smart investor considers property quality, location, neighborhood amenities, title liens and much more before jumping into a foreclosure investment.
For information on what to look for in a good real estate investment property, keep reading.
The Fewer Foreclosures, The Better
Don’t buy a foreclosure property in an area that’s riddled with foreclosures. Property values in that area are only decreasing and you’ll have a hard time reselling the property if you’re competing with other foreclosures and short turn-around sales.
Location, Location, Location
Location is key and about 90 percent of every real estate decision. Look for an area with a healthy property value, properties that are actually appreciating in value, good schools and proximity to desirable amenities.
Remember, you can always change the house, but you can’t move the plot of land on which it’s sitting.
No Residents in the House
Most foreclosure investment properties are sold vacant, meaning the bank or lender has already evicted the previous homeowners from the premises.
However, if you purchase a foreclosure property and the previous owners are still living in the home, you will be responsible for evicting them - an undesirable task at best.
This means, you’ll be responsible for the long, expensive and incredibly taxing eviction process. So, look for a property that is not only listed as vacant, but also confirm that fact for yourself before you take over the deed.
No Liens
Ask for a Warranty Deed that states the property has no other liens on it in the form of outstanding taxes or possible building code violations.
Have the Property Inspected
Most foreclosure investment homes and properties are sold “as is.” This means the bank selling them makes no guarantees about the condition of the property, its ability to meet building standards or the land on which it sits.
This is why a good and thorough house inspector is crucial to any foreclosure investment purchase. A quality inspector can tell you, for example, if you’re going to be saddled with a $10,000 roof repair or a termite problem that’s not going to go away.
See The Potential
Don’t walk away from a property just because it doesn’t look good or grab the eye. Instead, look at every property and see the potential, asking yourself how you could improve it with just $1500 or even $500. From washing to a good paint job, you’ll be amazed how far a little investment can go.
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