Who doesn’t like to make easy money? This is the attitude that made foreclosure investing a booming industry these days. Besides, the premise seems simple and sound enough. Banks don’t want to bother with foreclosed homes, so to get their money back quickly they sell them off at heavily discounted prices. You swoop in and buy them, then you invest a little time and money sprucing up the property, and then sell them at fair market value. Voila! Instant profits!
But actually, it’s not that simple.
So if you are contemplating putting your money, time, and effort into foreclosure investing, make sure that you have ample knowledge and experience about the following factors:
It’s not just the property itself which you need to research on. You also need to find out about the land the home is sitting on, as that can affect the price as well.
If the property is still occupied, then that adds another layer of complication. Again, you need to have a lawyer clarify your situation. Factor in the time you have to deal with a bank, and the entire process is not as quick and easy as it seems.
If you are a newbie to real estate, then foreclosed homes are not ideal investments for you. There are too many complications to consider, and you can get way over your head quickly. You need a lot more experience to succeed at this.
But if you do have the requisite experience, then you can try it out. Just make sure that you have the knowledge, the money, and the patience to see it through.