You may already know what a huge profit potential there is in foreclosure investing. You may also know that investing in foreclosure homes is a great way to get started in real estate investing. But here are three more reasons to invest in foreclosure homes:
In today’s economy, many foreclosure homes can be found in upscale neighborhoods.
Many people simply can’t afford to continue making large mortgage payments on their upscale homes, and consequently, they default on their loans, placing their home into foreclosure. When this happens, many people in this situation can be encouraged to avoid a foreclosure auction and preserve their credit by selling their home quickly to someone who can solve their problem by taking their foreclosure home (and their loan) off their hands. If you’re that “someone,” you may get a fantastic deal on a high-value home you may not otherwise be able to afford.
Buying foreclosure homes can allow you to invest in other homes with the money you save (foreclosure or not). Or, you can use the money to convert the foreclosure home into a rental home, or flip it and make still more profit.
You can buy a foreclosure home quickly (provided the owner is willing, and he usually is) and without undergoing financial scrutiny. Because the foreclosure process is a fast process (usually about three weeks, from beginning to end), and because you’re likely to have a cooperative seller under the circumstances, you don’t have to go through the regular financing channels. You can deal negotiate with the owner to take over his/her loan, offer cash (if you have it), or use other creative financing that doesn’t involve a long, drawn-out financial process.
Foreclosure investing has always been a great investing opportunity. In today’s economy, it may be just a little easier to take advantage of this opportunity.