A "Repo" or foreclosure home is any house, condo or manufactured home whose original owner defaulted on his mortgage resulting in the lender repossessing the home. The lender then reserves the right to sell the foreclosed home to another buyer. Savvy home buyers can sometimes purchase foreclosed homes from the bank at a discount.
Lenders have an interest in recouping their losses, but don't want foreclosed homes to sit on the market or in their accounting ledgers. Because of this, interested buyers can sometimes purchase foreclosure homes for less than fair market value. Doing so gives the home buyer instant equity and helps him realize a greater profit should he choose to sell the home in the future.
Are All Foreclosures In Bad Shape?
Bad condition and good / excellent condition can be found in all types of homes. I find it best to treat each home on the market and each transaction independent of all others. This way my clients, and I, go in with an open mind and determine the best strategy for each situation. Sometimes when faced with foreclosure, disgruntled homeowners may strip their homes of everything from the carpet to the doors and fixtures. Even when homeowners leave their homes intact, foreclosure homes face the risk of break-ins and theft if they are left sitting empty for long periods. Some foreclosed homes carry large rehab expenses such as an electrical or plumbing problem. For the right person this can provide the opportunity to earn extra sweat equity in a home already purchased for rock bottom pricing If you are interested in purchasing a foreclosed home, hire a qualified home inspector to thoroughly inspect the property and inform you of any problems. This helps you avoid unpleasant surprises after closing.
Do I Want To Buy A Foreclosure?
While a foreclosed home might sell for anywhere from 10 percent to 50 percent below appraised price, thereby offering an incredible value, the buyer should be aware there are some risks involved. Since foreclosures are offered "as is," it is important that a thorough inspection be performed; securing title insurance is also a good idea. There are several stages of the foreclosure process during which the property may be purchased. You will want an experienced agent who knows the process like Nick Bellmore.
I Am A seasoned Investor, What Can You Do For Me?
We understand the intricacy of purchasing investment property. We are aware that this is not an emotional buy—you are not buying an investment property because you must live there or “need” it. The primary reason that you are seeking to buy an investment property is to achieve a profitable return on your investment. Therefore, we understand that the goal is to acquire the property at a price that is economically feasible. We have helped investors with the acquisition of properties that achieve these goals. We can also help guide you with the following services...
* Property evaluation * Repair and renovation * Find a good Tenant for your property * Buy and Hold * Tenant Screening * Bulk sales * House Flipping * Identifying the right investments * Accounting * Investment and Landlord coaching * Property Management * Contractors List