Buy Or Walk Away? | Part Two

Buy Or Walk Away?Last time, I discussed the challenge that investors face when considering foreclosure properties. I think it’s importance to consider the cost when stepping into a business deal. Let’s look at some other important aspects of foreclosures, like the physical shape of a property, as well as location.

When investing in foreclosures, you must consider the actual state of the house. Some foreclosures stand empty for years, resulting in costly damages that may outweigh the value of the home. Be smart and go through an inspection process, so be sure to hire on a competent inspector to determine what the issues are, then get a contractor in there to decide the cost of the repairs. Major appliances are a huge expense, as is new sheetrock on the walls, new flooring, and cabinetry.

Another important consideration when investing in foreclosure properties is the area itself. It is important to find out why the home found itself into foreclosure in the first place. There are situations when a house goes into foreclosure because of the lending practices used to sell it in the first place. Other times it could be the location of a property, meaning a decline of an area, and people have left because of crime or a lack of solid work. Taking these points into consideration can help shore up your investment.

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