subject: After Finding a List of Foreclosures [print this page] After Finding a List of Foreclosures After Finding a List of Foreclosures
So with a bit of luck, you stumbled upon a list of foreclosures. Now what? You've probably heard that they are perfect investment properties but as for what investment methods are perfect for them, you are sadly clueless. If you ask seasoned investors, such inventory is a powerful tool that can be used in various investing methods all yielding returns even in a bad market.
Rehabbing houses. One good business where foreclosed homes can be used is in a real estate rehab. In this venture, the investor will search for cheap properties. He will sell these properties for a profit but only after raising their value through home repairs and improvements. You might be wondering how this business can thrive under current market conditions. Although the economy has yet to fully recover, and so as property prices, investors are making a killing rehabbing houses because they can buy investment properties at very low prices.
In a real estate rehab, it is important that the investor buys as low as possible. Remember, prices are not at their peak so the investor must compensate for this by buying as low as possible. Foreclosed homes make this possible. Take note that these are houses repossessed from owners who failed to update mortgage payments. Banks have had enough headaches from these houses, which are swamping their inventories. Lenders are not by nature sellers of properties, that's why they cannot maintain such a huge list of foreclosures. That's one reason why they are disposing of them at discount prices.
Apart from such homes, other properties that are the process of being foreclosed are counted as foreclosures. There is another investing opportunity here: pre-foreclosure investing, otherwise known as short sales. In a short sale, the investor will serve as the mediator between the banks and the homeowner. He can then use the property for other forms of investing, such as rehabbing houses.
Rental properties. If you're not into the documents and mediation, you can try opening rentals. To do this, you must consult your list of foreclosures and find a property that's located in an area where there's a huge number of prospect tenants. Buy that property and apply some repairs if necessary to attract more tenants. This is a good source of income without doing as much work. However, it might take some years before you recover your full capital from this type of investment.
Now, you know what to do with the list, in case you find one. And by the way, don't count on luck to lay your hands on the list. Simply go to RehabList.com right now and find scores of properties to rehab.
