subject: Make A Profitable Investment With New York Distressed Properties [print this page] New York distressed properties refer to those that are in danger of foreclosure for unpaid mortgage balance. By putting them up for sale, the mortgagees hope to recover their losses from the proceeds of the sale. If the mortgagor does not make good his loan, the mortgagee will forfeit the property and sell it to recoup his money. This is a wonderful opportunity for buyers since mortgagees are always aiming for a quick sale and at below market prices just to recover what was owed on the property. Here are some tips which can help turn in profits for you.
Observe, Act Quickly, and Negotiate
The first thing you need to do is to get a preapproved loan even before you shop for New York distressed properties. This is to ensure that once you see a property that you are interested in, you will be ready to pursue such property and not run against something like a disapproved application. This will frustrate your process and hamper your efforts.
Second, research the prevailing market rates for properties within the same locality and neighborhood and compare the prices with other similar properties. This should give you an idea on how much to negotiate. If possible, you may even want to research how much money is still owed on the property. Between that figure and the amount already paid to the lender is his break even figure. Knowing this will enable you to plan your offer while avoiding an outright rejection due to a too low bid.
Finally, do not forget to inspect the property. Do not defeat your purpose of buying New York distressed properties by buying one that requires a big investment to repair. Make sure that the property you are buying will not eat up the savings you have just gotten from the purchase as well as your projected profit. Check every nook and cranny as well as any possible money pitfall that can send your investment to an uncontrolled level of spending. Work with a contractor and a team of handymen who would be able to carry out the repairs without making money out of you.
Make A Profitable Investment With New York Distressed Properties
