Real Estate Investing – Successful Strategies for a Shaky Market

There is no doubt that the real estate market has changed dramatically over the past few years. Housing values have declined rapidly, foreclosures are at an all-time high, and investors have to hold onto properties for far longer than anticipated. And if these reasons aren’t enough to scare off the most die hard investor; there are a host of other things that further diminish the allure of real estate investing.

Many have simply pulled out of the market altogether and are waiting on a brighter time to come along before they start investing again. But those that have stayed in the game continue to rake in staggering profits. Why are they succeeding while so many others are failing? They have adapted their investment strategies to compliment the current market.

The real estate investing game has changed, so it seems reasonable that investment strategies have changed as well. Gone are the days of buying a property only to flip it in a month’s time. Gone are the days where property prices inflated overnight and investors awoke to find that they amassed a fortune while they slept. While these days may be gone, the following strategies are still proving successful:

•    Foreclosure investing – Foreclosures are hot, and there a ton of foreclosures on the market. The most successful strategies involving foreclosures today are purchasing foreclosures to be used as rental properties, selling foreclosures through rent-to-own programs and purchasing foreclosures dirt cheap and flipping for a modest profit.
•    Holding – Since most property values are either stagnant or dropping, selling an investment for a quick profit is no easy task. Therefore, many investors are buying properties for pennies on the dollar and holding onto them until the housing market turns around.
•    Financing – Many investors are helping people stay in their homes by offering to buy distressed properties that are facing foreclosure. They purchase the property and allow the original owners to remain on the property and pay rent. Once the homeowner is back on their feet, they have the option of repurchasing the property from the investor.

Successful real estate investing is still possible. All that is needed is a positive attitude and a good strategy to get started.

Visit my lens on the five reasons why real estate investing equals big profits. Read more articles on real estate investing.

 

Foreclosure Listings: What They Don’t Tell You

Using foreclosure listings is a great way to find a bargain. This is because buying foreclosures is kind of like buying a home off of the clearance rack. In many cases, a foreclosed home can be purchased for 30 to 50% less than its value. And there are foreclosed homes in every neighborhood in every price range. 

 

But before you head right out and purchase a home that is listed, you should know that there are a few things that foreclosure lists cannot tell you. These things you will have to determine for yourself:

 

• The Condition of the Home – Some foreclosed homes need major repairs. If you purchase a home at auction, you may not even be able to see inside the home or have an inspection performed before you make an offer. So, you will have to do your best to determine whether or not the home is a good value. Problems such as black mold and a crumbling foundation may make a home a liability rather than a good buy.
• Final Purchase Price – Many foreclosed homes are sold at auction. Of course, a few are sold directly by the bank, but these are not usually the best bargains as the bank sets the price. If you choose to purchase a foreclosed home through a silent or public auction, you will not know how much you will ultimately pay for a home just by looking at foreclosure listings.
• Neighborhood and Schools – You will need to investigate the neighborhood and school system before you decide to purchase a home. Listings will not give you this information, and real estate agents are ethically bound not to say anything that will encourage or discourage you from buying in a particular neighborhood.

 

Foreclosure listings are a great tool to use to find properties. However, you will need to follow up with some dedicated research of your own. Never purchase a property sight unseen from a description alone. Do your homework. After all, it is your money. Don’t spend it unless you know you are getting a great deal.

 

Get more information on getting the most out of foreclosure listings and making money on foreclosure listings.

 

What to Expect from Free Foreclosure Listings

With all the hype surrounding the purchase of foreclosed properties right now, you may be wondering what all of the buzz is about. You may even have wondered if you should look into investing into foreclosed real estate. The truth of the matter is that there is good reason why people are so excited about buying foreclosed properties in this market. The supply is high and the demand is low. This means that an investor can purchase virtually any foreclosed property without much competition and at a bargain price.

If you’re interested in learning more about foreclosed properties, the first thing you should do is obtain a foreclosure list. You can find free foreclosure listings at your local courthouse, online, in the newspaper and on government listing sites. Once you have a list, you can use it to browse foreclosed properties.

Here’s what you should expect from free foreclosure listings:

•    Large Number of Properties – Most lists contain a lot of property listings. Unfortunately, some of the properties could already have been sold or disposed of. So, you will need to follow up on the listings that grab your attention.
•    Wide Variety – There are foreclosed homes in every neighborhood and in every price range. Don’t think that foreclosures are only happening on Main Street; they are happening on Rodeo Drive as well.
•    Picture – Many properties will have a photo, but not all will. While most photos are accurate, you should never rely on a photo. Drive by the property to see if there are damages to the property that are not evident in the picture.
•    Description – You should expect a brief description of the property, but not one that would rival a listing in a real estate brochure.
•    Contact Info – You will also be given additional contact information that you can use to follow up on the property and ask questions.

If you are looking to purchase a home, you owe it to yourself to at least browse free foreclosure listings. There are a lot of good homes out on the foreclosure market right now. One of them may soon be yours!

Here’s another great article on using free foreclosure listings.

Check out my hubpage on how to find free foreclosure listings.