Buying a foreclosed property is a great way to get a house at a discounted price. Foreclosure homes are sold at auction, so there are many different ways you can purchase them.Rental Home Financing Investment Loans
Key takeaways for buying investment property from banks and foreclosures:
- Build strong working relationships in the real estate industry.
Agents in the industry can provide leads you may not be privy to.
- Investment Research is Key to Success
Understand the selling condition of homes, check for condition indicators, and learn how well the home was protected from wear. Hud housing is a good research tool to locate properties.
- Refinance companies like Rental Home Financing can help your portfolio grow.
Refinancing can be a quick method to expand your portfolio.
Tips For Buying Foreclosed & Bank Owned Real Estate
Real Estate Agent Toolbox
Searching through foreclosure listings is a good way to see what is out on the market right now in your area, but bank-owned real estate sells fast. Meet as many real estate agents as you can and bank agents for foreclosures, and find agents you can build strong working relationships. Agents might have previous experience with foreclosed homes and information on deals as well as unlisted properties.
Do Your Investment Research
Foreclosures are Sold as-is
Any foreclosure property is sold as-is. People often forget when they're excited at the auction. As an investor be sure you know the condition of the property, it could be a money pit.
Check the Wear Indicators
Neglected landscaping can be an indication that the occupants of a home have been absent for a long period of time. Market time and vacancy time are not the same. Abandoned property will deteriorate quicker than a well-looked-after property so this should be an indicator for your inspections.
Was it Winterized?
Even if there are obvious signs the property has been taken care of, ask if it was winterized. You don’t want to end up in a flooded home so check for winterization and bring a plumber before you even turn the water on.
Buy HUD Homes
A HUD home is when a homeowner has defaulted on their mortgage and the property was taken over by the Government. HUD homes are listed on the HUD website and are completely searchable but in order to place a bid, you are required to use a realtor.
Mortgage Refinance Companies Help Your Portfolio Grow
Use cash-out equity in current investments to quickly finance the expansion of your portfolio. An investment home refinance using the potential income of the property is not only faster than traditional loans but requires less paperwork.