With the guidance of real estate consulting, you’ll learn how to maximize your profits by investing in foreclosures and short sales. You may want to check out Haley Sutter, Amarillo Realtor™ – Amarillo Homes for Sale for more. Most individuals look at the current state of the real estate market and see nothing but a black hole. But, you’ll learn that investing in these properties not only earns you a significant profit, but it also helps revitalize neighborhoods that are slowly going downhill by getting families into the homes that you invest in.
Why Invest in Foreclosures?
Lenders foreclose on a property when the borrower has defaulted on their payments for 90-days or more. In an effort to recoup some of their loss, the bank typically lists the property for sale for the balance that the borrower owes on the property rather than the actual property value. Therefore, you can often find properties listed for $100,000 that are in actuality valued at $250,000 or more. By purchasing the home, you’ve instantly gained $150,000 in equity.
However, the largest profit can be had when investing in luxury foreclosures. This allows you to receive up to 50% to 70% off. Therefore, if the home is valued at $600,000, you may be able to swoop in and purchase it for as little as $180,000. If the home is in a distressed condition, simply upgrade the necessities to bring the home back to par and sell the home close to full value to the right buyer. If you purchase the home for $180,000, invest an extra $30,000 into the property and accept an offer for $550,000, your profit is $340,000 on just one home. It would take the average person over six years to earn $340,000 in their day job. As a real estate investor, it can only take a few months.
Investing in Short Sales
You may be asking yourself, “Why should I invest in a short sale when I can purchase a foreclosure for less money?” Well, short sales are sometimes a better deal than a foreclosure as you’re dealing with the current homeowner, rather than just the bank. It is in the best interest of a homeowner to sell the property. Therefore, you are far less likely to find that a short sale is in distressed condition.
When you’re considering buying a home that is in good condition and can be had at a bargain-basement price, it’s an ideal scenario. Because the home isn’t distressed your expenses involved with bringing the property back to an acceptable standard of living are going to be less. Therefore, your profit margin is higher. Just like foreclosures, short sales are listed for the amount that is owed by the borrower rather than the market value. Therefore, you’re often able to purchase a quality property at a steal.
Investing in foreclosures and short sales holds the keys to transforming your financial life. Making the right investment decisions requires a hard work, skilled eye, negotiation skills and the ability to spot the right property at the right price. Real estate consulting can help you make the profitable investment choices for you.