Getting Started in Real Estate Foreclosure Investing

Decide to Invest in Real Estate Foreclosure Investing

With the increase in Real Estate property appreciation rates across America, a prospective foreclosure buyer may want to fix up a property to improve its value to live in, to rent out or to resell. The strategy a buyer pursues will determine which foreclosure property to buy and the location.

For example with San Diego, California's media home prices topping at $500K+, a couple might not be in a position to afford a home of their own in San Diego, California. Yet, might be able to purchase a foreclosure property in another area or state with lower housing prices but in a faster growing market or with better future appreciation growth potential; when the property increases it's value in a few years time, sale of the property could provide the necessary capital to purchase in the San Diego area.

Locating Foreclosure Properties

Finding foreclosure properties can be done by visiting the local recorder's office and making photocopies, since listings are added on a daily basis, this can be daunting.

Using the internet, a number of web sites allow searches by state, county, city, and zipcode. All the sites listed below offer listings for a fee. Take advantage of the free trial period offered to fully evaluate thier listings. The sites should offer the latest listings with daily/monthly updates.

Determining the Distressed Property Valuation

Once you have identified a foreclosure property of interest in an area you have researched, determining the value proposition will determine whether or not to continue. The determination will be influenced by your investment strategy, i.e., whether you wish to live in, to rent out or to resell are factors to consider as well as your investment time frame.

The first step in foreclosure property valuation is the obtain information regarding the area. A number of web sites offer free sales comparables or "comps". This information greatly assists in determing the property value.

Securing Financing

Due to the quick window of opportunity a foreclosure presents, it is important for a potential buyer to be pre-qualified before engaging in Real Estate Foreclosure Investing.

Also, knowing the amount of monies available to the investor can be a guide to locating areas within the U.S. that are with the the investment range

Being pre-qualified allows the buyer to be in a financial position to purchase the foreclosure property. Pre-qualification provides an important edge in competitive markets. Once approved, financing in-hand makes negotiations easier.

Finding and working with Real Estate Agents

The single most important aspect of foreclosure investing involves finding and working with a Real Estate agent.

If a foreclosure property is being considered out of the area or state, then working with a local agent in that area -who can advise on the condition, knowledgable about the growth potential, advise on local conditions, is an important relationship to develop.

Since a majority of Real Estate agents focus on "traditional" real estate transactions, mentioning "foreclosures" might cause them to balk at potentially working with an prospective investor; Therefore, educating the agent on the opportunity of working with you is important.

"Buyer's representatives" have the home buyer's interests at heart, and are charged with finding the right property and negotiating the best price for their clients. Picking the right real estate agent will make a buyer's life much easier. There are agents who specialize in the foreclosure market, with specific experience in REO properties.

Look for an agent with foreclosure transaction experience, as well as knowledge of local, regional and state laws. But it's also important to consider the agent's knowledge of the area; their ability to close a deal; and their access to other professionals (attorneys, lenders, mortgage and title professionals) to ensure that the buyer is in good hands.

Making an Offer

Once you have determined the property valuation, researched the area and appreciation growth potential, and established a relationship with a Real Estate agent making an offer amount somewhere below the market value is the final step.

If the property is bank owned (REO), you could prepare an offer similar to a typical purchase offer, contingent on a full inspection and title search.

John Appleseed.

Learn more about bank foreclosures and how to get foreclosure listings at http://www.bankforclosurelistings.com/index. html

---

Water, Water Everywhere on the Waterfront

Waterfront living is among the most desirable of locations in... Read More

Getting Started in Real Estate Foreclosure Investing

Decide to Invest in Real Estate Foreclosure InvestingWith the increase... Read More

How Long Your Mortgage Runs Determines How Much You Pay

The first thing most of us think about when the... Read More

Condo Hotel Trends - A Look at the Big Picture in Vacation Home Ownership

Condo hotels are one of the hottest products in today's... Read More

Should You Allow Buyer To Rent During Closing?

It's not uncommon for an investor to sell a house... Read More

Fixing Houses for Resale: Three Beginning Steps to Increase Profits and Have Fun

Real estate investors specializing in fixers make higher profits when... Read More

Homes in Chapel Hill

Chapel Hill is located right in the middle of North... Read More

Joint Ventures In Real Estate Development; So How Do They Work?

There are many reasons why you would consider joining with... Read More

Real Estate Investment Requires A Team

I had a hard time at first with real estate... Read More

How Does Interest Rates Affect New Home Sales and Wheres The Best Place To Build?

These real questions on new home starts and interest rates... Read More

Investment Real Estate -- A New Twist: Be the Bank, Not the Landlord, and Get Rich Without the Work!

I was a landlord for a decade, and I believe... Read More

Real Estate Investing: How to Choose a Lender

To become a successful real estate investor it's vital to... Read More

Property Investment Strategy: Securing Properties with Little or No Deposit

Property Investing often requires creative strategies to make it successful.... Read More

Working With Your Real Estate Attorney

Purchasing or selling a home will probably be one of... Read More

Why Property Investors can Crash and Burn

Many experts say you can't lose if you put your... Read More

Investing in Real Estate Profitably: Eliminating the Need for Mortgage Insurance

In an earlier article, we presented various options for ensuring... Read More

The Secret to Maximum Real Estate Profits: Lighting

Lighting is the most important detail of interior Design Psychology... Read More

How to Find the Sweet Spot in Real Estate Investing

Psssssssssst, Want to know a great way to make FAST... Read More

Boston Real Estate ? You Still Have Considerable Control Over the Sale of Your Boston Home

Boston real estate is a hot topic. Daily newspaper articles... Read More

A Crash Course On The Payout Options Available To You When Selling A Mortgage Note

Okay, let's take a look at the typical payout options:Full... Read More

Estate Agents on the Costa Blanca Spain

Properties for sale or to rent on the Costa BlancaAs... Read More

The Sadness of Old Buildings

From the book No Smooshing!For years, I've carried on a... Read More

Realtors - Self Promote Your Way To Success

Okay, so we all can agree - listings are the... Read More

Timing Is Everything When It Comes To Buying Homes

The old adage that "timing is everything" especially applies to... Read More

Rental Property Management - Ten Questions

Why hire rental property management? Because doing it all yourself... Read More

How to Negotiate a Successful Short Sale

Anyone who has ever profited from doing a short sale... Read More

FSBO: For Sale By Owners Chapter IV [part 1]

Like a monarch, Red Haring reigned in the deep leather... Read More

Make Money With Room Rentals

I don't know why I didn't do it sooner, but... Read More

Should You Buy a House or a Condo?

A big debate these days is whether or not to... Read More

Termite and Moisture Damage Not Reported

I have done so many appraisals where I saw obvious... Read More

How to Achieve Financial Freedom with Your Home

The secret disclosed on how you too could achieve financial... Read More

When Showing Your Home

Here below are some of the reasons why buyers may... Read More

Dead Deals and Recycled Reports

Everyone knows that at the end of a home inspection,... Read More