Real Estate Investment Ideas: Securing a Foreclosed Property- By: Karim El Sheikh
If you are seriously contemplating on venturing into real estate investment, purchasing foreclosed residential properties is one solid step towards success. It is a common fact that foreclosed properties are sold at significantly lower prices. And with a few enhancements on the property, you can re-sell it at a considerably higher value, which ultimately means, more profit for you.
To get started, you need to have a more in-depth understanding of how the industry operates and the key points you need to be aware of. Real estate is a lucrative business, and in view of the rock bottom prices of foreclosed houses, now is the best time to get started to take advantage of highly rewarding opportunities that abound.
Why Home Foreclosures?
Basically, foreclosed homes refer to properties that have been repossessed by the bank or any lending intuitions from homeowners who are unable to pay their mortgage. This means, once a homeowner is in default of his mortgage, the bank or lender has the authority to reclaim the home, and then resell it in order to regain the money lost from the unpaid loan. In view of the widespread housing problem, foreclosed homes are now sold at auctions for as low as 30% to 50% below the property’s actual market value.
This presents an opportunity for investors to earn substantial revenues by purchasing a foreclosed home at a bargain rate, fix it up and resell it for a higher value. In fact, even if you only put up 10% increase, you can easily earn $ 10, 000. And if you happen to come across a really good bargain, you can make as much as 50% income – definitely some serious revenue margin that is well worth anyone’s time and effort.
How Profitable is a Foreclosure Investment?
If you are looking for a great way to earn more, then you should know that even inexperienced investors have their own share of success stories. Consider this possible scenario: a foreclosed property with a value of $ 50,000 is sold at an auction. An investor was able to secure the purchase for $ 28,000, after which he spends $ 2,000 for renovation and some repairs. In a competitive market, this property can easily sell for $ 60,000, earning him a profit margin of $ 30,000, which means he practically doubled his investment and earned 100% out of his initial investment.
For many who are bold enough to venture into this kind of business, while it may mean investing significant amount of money, which entails a degree of risk, a strategic approach can be very rewarding. Given the continued slump of the housing market, it’s an opportunity you definitely don’t want to pass up.
However, as with any business venture, real estate investment will require time and a lot of patience, but the payoff comes with huge benefits. Take time to check additional information online so you have a better idea on the current rates of foreclosed houses. Of course, contracting the services of a real estate agent is always a good idea since they are more knowledgeable on foreclosure deals and can assist you on how to work your way around.
Article Source :
Author Resource :
ForeclosureFreeSearch.com is one of the first foreclosure listing websites to emerge on the web. View all foreclosed homes for sale in your area.