BuyingÂ repossessed homes is one of the best opportunities available inÂ real estate investment. Because so many people are now unable to make payments on their mortgages, lenders are becoming overrun with repossessed homes. The lenders sell these homes at aÂ foreclosure auction in an attempt to get rid of the properties as quickly as possible. Since lenders arenâ€™t looking to make a profit on the repossessed homes, investors can often find great homes at well below market value prices.
Also known asÂ REO properties, foreclosed properties andÂ bank owned properties, repossessed homes can often appear to be a great deal, but investors should be wary. Many repossessed homes need work, whether it be major repairs or simple renovations.
Before bidding on any property at an auction, be sure to thoroughlyÂ evaluate the investment. This ensures that the repossessed home youâ€™re considering isnâ€™t a perpetual money pit. Look at other properties in the same area and make a note of rent prices and sale prices (depending on if you plan to resell the house or rent it out for a residual income). View the property, making notes of what repairs or upgrades it needs to be marketable.
Repossessed homes are a great way toÂ start your real estate investment portfolio. Just be smart about it. Too many investors make the mistake of seeing a house worth $100,000 for $30,000, jumping on it, then find out that it needs too much work, or it wonâ€™t bring in enough income to make it worth it. Donâ€™t make this same mistake!
Many banks have repossessed homes listed on their websites. Here at Realnet, you can view ourÂ foreclosure listings to find the perfect property for you. When you buy through us, as opposed to buying through the bank, you get all of your questions answered. We can help you find the perfectÂ Florida foreclosures to meet your goals as an investor.