The world of foreclosure investment property is not that difficult to navigate with the proper real estate comps. The first thing you have to do is to locate a foreclosed property. Below I want to take some time to share some tips on buying foreclosures and being successful with your deals.
There are 3 known methods that you can use when buying foreclosures:
Pre-foreclosures. This happens when you purchase a property before it is up for an auction. The current owner may no longer be paying on the property or may have a debt and opted to put the property on sale.
Purchasing at an auction. This is equivalent to almost any typical auction. You bid a price for the property and the one who makes the biggest bid would get the property. There are many ways to find a foreclosure property for auction. Among the most known ways is by searching on the internet. On the other hand, a disadvantage when purchasing from auctions there is no warranty or returns associated with the purchase. You, as the new owner will be responsible for any issues that the property may reveal.
REO. This method is also termed “real estate owned”. This procedure is considered as risk-free because REOs are quite different from purchasing from a normal sale. There are really no cons to the method of purchase. A foreclosure investment property can bring great income to most investors. And this is the reason why it is appealing.