Many investors that are just starting out can sometimes get caught up in all the terminology and processes of the investment business. Without a strong support system or help with the real estate comps and valuation of a property, many can get left in the dark. Let’s take a look at foreclosures and how they work into the grand scheme of things for an investor.
A true foreclosure is a court sale, so generally you won’t see foreclosures as listed property. (This may be argued as some counties do now pre-advertise the sale prior to auction) When purchasing at the courthouse, you may hear that the sale is on the “Courthouse Steps”, you will need to pay the entire portion of the purchase in cash within 24 to 48 hours depending on County. This will take this option off the table for most homebuyers, as this is an investor-saturated world. We all know cash is king. However, if you are looking at a home that was a foreclosure be sure to ask about open liens prior to making an offer. You don’t want to find out 25 days in that there is an open electrical permit and the home can’t close without inspection and possible code violations. $$$ It adds up.
As an investor learning the in’s and out’s of these two types of property sales gives you the opportunity to be prepared for the next BIG deal. Working with InvestorCompsOnline equips you with the tools to make that deal a reality!