Foreclosures and Tax Sale homes are often neglected as a result, the real estate investor will have to do some improvements and repairs. While this will increase the investment property’s market value, it still would cost the property investor especially if the investment property is in a miserable condition. That being true hiring a home inspector for around $325-$450 before your purchase you may discover the estimate cost of repairs is not worth in headache.
High Competition for the purchase
Because foreclosed homes are below market value, a lot of property investors compete to buy these income properties, so your offer could be rejected. In addition, this high competition means the bank will receive so many offers which will drag out the buying process. If a your determined to buy the investment property, he/she will have to offer a higher price that sets him/her apart from the competition.
Approach with Caution
While foreclosed properties are a good option for beginner property investors with little capital on hand, buying these investment properties is not recommended. On the other hand, work with a mentor that has the groundbreaking experience to guide you through the business process and be successful. Gather your facts buying foreclosures isn’t the only type of real estate investments available. To name a few Short Sales, Tax Lien, or directly solicit the property owner. Life is always changing stay optimistic right place & right time diamond in the ruff could be yours!