subject: After Finding a Listing of Foreclosed Homes [print this page] After Finding a Listing of Foreclosed Homes
Have you ever wondered what real estate investors do after finding a listing of foreclosed homes? Common people are clueless. The next thing they know is that investor goes on a vacation with this family their fourth in one summer! Just what transpires between the two events? Take peek here.
Real estate investors have a lot options after finding houses in a listing of foreclosed homes but the most popular perhaps in rehabbing, in this business, the investor will need a cheap property, a lot of financing, handyman skills, and some killer marketing strategies. And when they are searching for cheap property to rehab, foreclosed homes are among their top choices.
Foreclosed homes are very affordable. That's because these properties already have a clean title. The bank or lender already crossed out all liens and claims in the property. What makes these houses extra cheap today is the lender's motivation. Banks want these houses out of their inventories fast, and that is why they are willing to sell them at deeply discounted prices. Lenders cannot afford to keep these houses in their inventories. Banks are not house sellers, they are lenders; they cannot spend on the maintenance of a huge number of properties. Instead of losing more money, they will just sell the houses to investors.
The next thing real estate investors do is to search for financing. They need money primarily for three expenses: home purchase, repair, and closing. They usually go to a hard money lender or a private lender. These creditors are usually willing to provide the investor with money to buy, repair, and sell the house. of course, they will only fund the deal if they think that it is profitable. After finding a house from a listing of foreclosed homes and securing financing, rehabbers will then buy the property and make repairs on it.
While the repairs are being done, the investor will concentrate on marketing the property. He usually has a list of buyers who are purchasing properties in that area. He might choose to publish it on local newspaper ads. However, most real estate investors choose to advertise their properties online. There are a lot of websites where advertisements on houses for sale may be posted. Some of them even offer free services. Once sold, the rehabber will take home a five-figure paycheck. Now you know why they're on a vacation again.
Want to take as much vacations? Learn how you can start in this business by going to RehabList.com right now.
