Whatever your real estate goals are, investing in a bargain-priced foreclosure packs enormous potential for profit. With historically high supply and record low prices, there’s never been a better time to buy one.
Here’s why:
1. Dramatically reduced purchase prices. Bank-owned foreclosures (and pre-foreclosures) cost radically less from the outset, typically deeply below their market value. The reason is simple: every day a bank hangs on to a foreclosed home, the more money they lose. It’s an understatement to say that banks are in a hurry to get losing assets off their books. Foreclosure burdened banks like Countrywide, Aurora, Bank of America, Citigroup, Wells Fargo, and Washington Mutual are no exception.
Banks’ eagerness to quickly accept even below-market offers—sometimes as low as half the home’s original price—puts the deck in your hands. Your in a position to benefit—even profit—from a bank’s willingness to negotiate, often in your favor. What’s more, when you finance a foreclosure through the bank that owns it, you score even steeper purchase price discounts and better overall value. How far is the bank willing to go? You never know until you ask.
2. More house for your buck. With banks so eager to wash their hands of money-draining foreclosures, buyers are finding that they’re able to purchase significantly more square footage for their dollar. It’s a fact. First-time home buyers, and investors alike, are empowered to purchase larger, more expensive homes than they might otherwise afford.
3. Foreclosures make great fixer-uppers. Looking for a solid short-term investment? Consider foreclosures as prime “fix-and-flip†opportunities. The thousands of dollars you save on the initial purchase price of a discounted foreclosure can go toward home improvements that greatly increase the value of the home.
4. Foreclosures make great rental properties. Record numbers of Los Angeles and Orange County area home buyers and real estate investors are turning foreclosures purchased at record-low prices into rental properties. Rental units generate a steady flow of monthly income, improving owners’ quality of life, not to mention adding the comfort of extra security in lean times.
5. Foreclosures make great long-term investment properties. Bargain hunting foreclosure buyers are already saving an exceptional amount in initial investment. In time, they can sell them as investment properties and, if the market’s right, pocket a substantial return on investment. You could walk away with far above and beyond the foreclosure’s deeply discounted purchase price.
Considering buying a foreclosure? Check out my five helpful insider secrets to buying foreclosures now. Or sign up to get VIP access to my exclusive list of bank-owned foreclosures—BEFORE they come on the market.
Sincerely,
Mark Shandrow
REO Broker-Associate
Keller Williams Realty
markshandrow.com
