How To Identify The Right Real Estate Investment Opportunities

How To Identify The Right Real Estate Investment Opportunities By Andrew Stratton

Buying real estate can be a great way to increase your wealth. Whether you want to buy property to sell once it appreciates or you want to buy property to rent it out, you can create a nice portfolio for yourself if you choose the right opportunities. However, identifying those opportunities can be easier said than done.

Here are a few things you can look for to help you identify good investment opportunities:
Location Potential

The primary rule of real estate is "location, location, location." The value of any home or commercial building is heavily influenced by where it is located. Everything from the quality of the school district to the types of businesses that are in the neighborhood will have an impact on value.

If you are looking for investment opportunities, you should look for neighborhoods that have the potential to appreciate rapidly in the coming years. If the neighborhood is already popular, prices are probably already high and won't go much higher. What you want to look for are neighborhoods that will be impacted by planned developments, such as a new highway that will make commuting easier or a trendy new shopping mall that will attract workers and visitors. Do as much research as possible to make the best decision.

Foreclosures

An easy way to get some built in equity in a property is look for foreclosures. These homes and commercial buildings are being sold by the banks, which are just trying to recoup whatever money they can on the defaulted loan. You will be able to pay thousands less than market value for these properties in most cases.

Of course, everyone else who wants to invest in real estate will be looking at foreclosures, as well. You will have to be persistent in your search and fast on your offer if you want to get the best deals.

Fixer Uppers

If you're handy with a hammer, you might be able to buy real estate that needs a little help, then fix it up and sell it for a considerable profit. You'll need to have vision to identify the properties that can command high sales prices once they are renovated. Then you'll need to be willing to put in the work or have the budget to hire someone else to do it for you. Before you buy, you'll have to have a very good idea of what work needs to be done and how much it will cost. You can then compare that to the profits you expect to get when you sell.

Investing in real estate can be a great way to grow your wealth, but you have to have some investing savvy to identify the right opportunities. Learning as much as you can about the neighborhoods in your area is a good place to start, and then you may want to consider looking at foreclosures. If you don't mind the work, buying a property and fixing it up, or "flipping" it, can also be a great way to make a profit.

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7 Reasons Why Real Estate Investors Should Learn How to Buy REOs From Banks

7 Reasons Why Real Estate Investors Should Learn How to Buy REOs From Banks By Roland Frasier 

Most real estate investors have heard of the amazing deals that are available when you buy bank owned property (also known as REO property), yet most people aren't really sure why they should learn how to buy REOs. This article discusses 7 Reasons why real estate investors should learn how to buy REOs from banks.

There are challenges with purchasing REOs. For example, many of the properties suffer from neglect and need substantial fixing up or rehabbing.

Also, REO deals can take months to negotiate and close, and sometimes it's not that easy to track down the bank personnel you need to negotiate with.

However, if you can get the right price, REO properties can provide tremendous upside potential and quick cash from wholesaling. With that said, let's look at 7 reasons why real estate investors should learn how to buy REOs from banks:

Reasons #1 - Opportunity to Wholesale For Quick Cash. Because many REO properties need fixing up, and because you can buy them from highly motivated banks at cheap prices, you have a great opportunity to do "wholesale" deals with REOs (deals where you buy low and then flip the contract to another investor for a quick cash profit). Usually, you can find REOs that need only minor fixing up or mostly cosmetic work, then do the work inexpensively before flipping the deal to a retail investor.

Reason #2 - Large Available Inventory. With foreclosures at all time highs, the inventory of REO real estate has never been as high as it is right now. This large inventory means you have many more REO properties to choose from presently than you would have even a few short years ago. This means that your chances of finding an REO property that fits your needs is better now than it has been in a very long time.

Reason #3 - Great Prices From Highly Motivated Sellers. Banks are not in the business of owning property. When they loan money, the last thing they want is to have to take the property back in a foreclosure. So, when they do find themselves owning real estate foreclosures, they tend to offer substantial discounts on those properties just to "get them off the books." That means great prices for savvy real estate investors who know how to buy REOs.

Reason #4 - Availability of Favorable Seller Financing. Since banks actually ARE in the business of loaning money, they can offer more generous financing terms when they find themselves in the position of selling real estate. So, when negotiating for REOs be sure to ask about financing options.

Reason #5 - Availability of No Cost Expertise. Many realtors, looking for ways to grow or maintain their businesses in these falling markets, have become experts in dealing with REOs. You can use their expertise to walk you through the unique aspects of the REO finding and buying process and they get paid by the bank for helping you make the deal happen.

Reason #6 - Convenience. Banks want to move their properties so they generally make it easy to see and inspect the REOs they have for sale. Homeowners facing foreclosure may be resentful of your attempts to inspect their home. Dealing with the bank removes this emotionality from the equation.

Reason #7 - Professionalism. Many homeowners, especially those going through the challenges of foreclosure, can be emotional and difficult to deal with. Banks are all business, so you can count on dealing with someone who is professional and interested in getting the deal done.
As you can see these 7 reasons why real estate investors should learn how to buy REOs from banks make a powerful argument for adding REO buying to your current mix of real estate investing activities. If you haven't already explored the world of REO buying and investing, it's definitely worth a look!

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Real Estate Investors - Foreclosure - Opportunities and their profit

Real Estate Investors - Foreclosure - Three Opportunities For Profit By Jennifer Bland 

Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. There are three opportunities in purchasing foreclosures: 

1. Prior to the auction
2. At the auction
3. After the auction

Prior to the auction

This first opportunity is called pre-foreclosure. When a property is in pre-foreclosure, the owner still has a chance to stop the foreclosure process by paying off what is owed or by selling the property. Lenders are required to advertise foreclosures in the legal newspaper for four consecutive weeks prior to selling the property at auction. During that time, the investor can seek to purchase the property, either by paying cash for it, or by attempting to purchase the home contingent upon his ability to reinstate the foreclosing loan and taking title "subject-to" the existing loan.

Buying a pre-foreclosure can be a method to purchase a property with little or no money down and no credit especially if you are able to purchase the property "subject-to" the existing loan. Investors get the equity in the property in exchange for helping the property owners avoid foreclosure. The downside of purchasing a pre-foreclosure is that most homeowners are in denial, and it may be difficult to deal with them.

Purchases made during pre-foreclosure are considered "regular" sales in the sense that there will be a written purchase contract, your attorney will search title and offer you title insurance, and there will be a normal closing at your attorney's office just as in any other home purchase.

At the auction

The second opportunity is in purchasing the property at the courthouse steps during the public auction. If nothing has been done to cure the event of default which led to the original foreclosure notice, the lender will, through the foreclosing attorney, conduct an auction on the courthouse steps. The property will be sold for cash. Only bank money orders will be accepted, and you must bring the funds with you. The bidding opens with a bid on behalf of the lender in the amount of the indebtedness plus all late payments plus attorney fees. Bidding continues until the highest bidder wins. Typically, all junior liens on the property are wiped out at the auction.

Purchasing a property at the courthouse steps lets you avoid having to deal with a property owner in denial. The downside is purchasing a property unaware of the interior condition of the property.

This is not considered a "regular" sale because there is no contact and typically no title search is performed.

After the auction

This final opportunity is called REO. If, after the opening bid from the lender, there are no additional bids, then the ownership of the property is transferred to the lender, and the lender will typically try to sell the property as quickly as possible. Lenders will list these houses with real estate agents, who will place them in the multiple listing services. Lenders consider these REO properties to be "non-performing assets," and want them off their books quickly; especially if they believe they have more coming in behind them. Often they will sell for substantially less than the loan amount, especially if the property is in poor condition or the lender has a large inventory of such property. Prior to the purchase the investor will be able to inspect the property.

This is a "regular" sale in the sense that there will be a contract, title search, and a standard closing in an attorney's office.

There are multiple opportunities to purchase foreclosures and they can be purchased at three distinct phases of the foreclosure process.

There are many ways to make a fortune investing in real estate. For more information about real estate investing visit my website at InvestInRealEstate101.

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Real Estate Foreclosure Listing

Real Estate Foreclosure Listing - List of Real Deals By Reese Evans

A real estate foreclosure listing is a great place to find some deals on foreclosure properties. You can find a real estate foreclosure listing the same place you would find properties that are available on the traditional market. I can tell you where to find real estate foreclosure listings, but is a foreclosure the way you want to go? You will hear many arguments for both sides.

It's very true that as an investor or even someone looking to purchase a home to live in, you should look at foreclosures or pre-foreclosures as ideal properties. But at what point in this process is the best time to purchase the home. A home goes into foreclosure because the homeowners and are unable to make the required mortgage payments. The whole process from when the homeowner first starts missing payments to when the lender holds the deed can take up to a year. Up until the final moment the homeowner has the ability to make all the missed payments plus any foreclosure fees and keep possession of the property.

As an investor, if you're looking for a short sale or a pre-foreclosure you are dealing with the homeowner in the period just before the home goes to auction. You can be constructing your deal, working on financing and even working on getting a new buyer or tenant for the property, and the rug can be pulled out from under you. The original homeowner may come up with the necessary funds to keep their home. And now you have to start all over again and find another real estate foreclosure listing.

If you wait until the home has been foreclosure on and then you buy it, you may have to deal with homeowners or tenants who are still in the home. At this point, the home is yours and it's your responsibility to get rid of the people who are living there. Can you deal with the emotions that come with evicting someone?

There are many things that you have to think about when you're purchasing a real estate foreclosure listing. But you must keep in mind that anything worthwhile you have to work at. No one said that this was going to be easy, it will take some effort, but there is money to be made.

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Real Estate Foreclosures-what,How

What You Need To Know About Real Estate Foreclosures By Michael Contaro

Many people today are losing their properties to lenders by foreclosure. Foreclosure is the legal definition for the process regarding the transfer of a borrower's properties to a lender because the borrower wasn't able to meet the terms of the loan repayment. The property is repossessed by a lender and it is auctioned or sold as a foreclosed property.

This article tries to give some general information regarding real estate foreclosures and other kinds of foreclosures in general. If one is buying foreclosed real property, he might want to spend a few minutes reading this article.

How Properties Are Foreclosed

A foreclosure action is usually initiated when a borrower isn't able to pay up three mortgage payments. A notice of default will be issued by the lender against the real property. If the borrower is unable to pay up the debt, the lender will have the right to foreclose the property and sell it in a trustee sale.

Problems Regarding Buying Foreclosed Real Property

When we talk about something that is as risky as buying a foreclosed property, we might as well lay down the problems that might arise in this venture. Although one can have a great deal out of purchasing real property that is foreclosed, one must have a keen eye on the details.

A simple rule in buying foreclosed real estate property is- "beware." There are not much available schemes for buying foreclosed properties in general, therefore, one must be very liquid and this entails a lot of disposable money. An impulsive buyer should be careful in engaging in auctions and sales of foreclosed properties. The title of the real property should be checked meticulously so as to avoid purchasing a deficient title. One of the more serious concerns that should be considered is that the condition of the property is not known well and usually, an inspection of the real property will not be possible before one purchases it.

Types Of Foreclosures

There are two main types of foreclosures out there, the judicial foreclosure and the non-judicial foreclosure of properties. A judicial foreclosure is a process by which a trustee, a mortgagee or a lien holder requests a sale of the property which is supervised by the court to be able to pay the outstanding balance of a debt. The non-judicial foreclosure action is a process wherein an owner of a real property sells under the power of sale in a trust deed which is in default.

How To Find Foreclosed Properties

If one is really interested in getting his hands on foreclosed real property, he should be keen and act fast because of the stiff competition in the market. In almost all states, notices regarding foreclosed properties can be found in the legal notices pages of the local newspapers. One can also spot a foreclosed property by taking a drive because they have notices in them (just like advertisements) saying that they are up for sale.

One can also go to the webpage of the U.S. Department of Housing and Urban Development where they advertise foreclosed real properties- http://www.hud.gov

There are a lot of foreclosed real properties out there, however, people should be careful and smart in proceeding with purchasing these properties. With the proper research and wise actions, one can actually get a great deal out of buying foreclosed real properties.

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Real Estate Foreclosures Investment-Lot of Money

Investing in Real Estate Foreclosures Can Make You a Lot of Money By Alex Rodrigo

Real estate foreclosures are properties that have been repossessed by lenders because the previous owner of the property failed to make mortgage payments under the terms of the loan. The lenders then sell these properties to the public in order to recover their losses. Sometimes these properties are sold at a real estate auction, where foreclosure real estate goes to the highest bidder. But they may also be sold by the homeowners themselves, or by government agencies.

There are different types of foreclosure properties that you can buy. These include foreclosure homes, bank owned properties, repo-homes, HUD homes and VA foreclosures.

While their popularity and value as a commodity is now higher than ever, foreclosure homes have been around for many years and have always been a great way to invest in real estate. The most important thing to know about real estate investing and foreclosure properties is that while many foreclosures can be bought at prices way below market value, this is not the rule. Some foreclosure properties are sold at or around market value and will not allow you to earn as much money. You can still get very good deals, but you must do your research and carefully evaluate each opportunity

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An Outline of Real Estate Foreclosure

An Outline of Real Estate Foreclosure By Hayley Bingham

Real property is often put on the line when it comes to obtaining loans. Since most creditors ask for collateral before approving loan requests, most people present their most valuable property. For ordinary people, this would have to be their house.

This can be a problem, however, when the debtor fails to keep up with his or her financial obligations. In this situation, the term real estate foreclosure slowly but decisively enters the scenario. This technical term, used by creditors, serves as an ultimatum to most debtors. Real estate foreclosure carries a threat of permanent acquisition of certain collateral to make up for the unpaid loans. Whether the property in question is a simple bungalow or an extravagant mansion doesn't matter. All that matters is that the debtor and the creditor both agreed on a mutually advantageous contract.

However, this drastic move should always come as a last resort. There are certain processes which need to be gone through before properties are foreclosed.

Before this stage is reached, a lender must first send notices and warnings to the concerned party, which is the debtor. A responsible debtor will respond to these notices by either paying portions of the debt or simply asking for payment extensions. If the debtor chooses the latter though, he or she must be sure that she has what it takes to fulfill the promise.

After that, an investigation will take place. If the debtor is deemed guilty of non payment, he or she will eventually lose property through strict foreclosure or foreclosure by sale. Either way, the nonpayer will also receive a scheduled law day.

Lastly, an order of ejectment will be sent by the court if the defaulter refuses to leave the property on or before the prescribed law date.

There are other alternatives the debtor can choose. First option would be to sell the property in question. This might save tons of money when real estate foreclosure becomes imminent. The seller will just have to make sure that the property is sold for a price that can cover the total debt. If not, then more actions can be expected from the creditors.

A person may also seek the help of mortgage assistance programs and other financial problem intervention schemes. This will be his or her gateway to temporary relief from losing the property. However, she or he will still have to pay off the debt in the near future.

Last but not least, a debtor might want to just bow down and offer the deeds to their property. If the creditor accepts the offer, the property may be lost but so will the debt. This is the best alternative for mortgage loans which have expanded due to high interest.

When it comes to real estate foreclosure, it's always best to keep one's options open. The more options a debtor has, the more chances he or she has of a financially sound real estate life.

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