Monthly Archives: February 2012

Feb 28

Fannie Mae Begins Marketing Foreclosed Homes as Rentals

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If you’re interested in investing in foreclosure rental properties, then you should check out this article:

Fannie Mae plans to sell nearly 2,500 foreclosed properties to investors in the first phase of an initiative to aid the U.S. housing market through bulk sales of distressed homes.

The company’s regulator, the Federal Housing Finance Agency, on Monday released details of a planned pilot transaction under which the government-controlled mortgage-finance firm will offer the properties to investors in bulk and require those investors to rent them out.

Click here to read full article

Feb 24

What You Must Know For Foreclosure Investing

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The property market is good and provides great opportunities for investment in both the short and long term. Foreclosure investing is particularly attractive to many investors because properties can be purchased for a much lower price. Foreclosure investing does take some knowledge. You should know about property values, state laws, taxes and investors. Make sure you have at least a basic knowledge of these facts or your foreclosure deal could fail.

Before you purchase a foreclosure property, you need to have some idea of property values in that area. Look at similar homes in the same neighborhood that are done to a good standard. This should give you an idea of what the market price will be. If you do not have a good idea of what the market value of the property is then it is foolish to buy it. Without the market value, you have no way of knowing if you can turn this property into a profit making project.

Before you get too far into your foreclosure investment, you need to have some knowledge of the state laws regarding foreclosures. Each state is different in regards to real estate and laws governing foreclosure properties. Some investors have gone into property deals only to find out later that what they had agreed was not legal in that state. This can mean a large loss in money and the possibility of other legal issues.

Another aspect you need to be aware of is money. If you have your own money then great. Make sure you do your research before getting in to far. If you don’t have your own money then look for investors. The advantage of using investors is your not risking your own money, only your reputation. If you’re having trouble finding investors then perhaps you should rethink this particular property deal.

Finally, you need to know how to check for things such as federal tax leans, unpaid taxes, leased land, and wrong descriptions. Foreclosed properties run a higher risk for having some of these things then standard properties. Problems such as this can quickly turn your property investment into something unprofitable if not illegal.

Property can be a great way to make money. Foreclosure properties can be a great way to save money. Before you sign on the dotted line however, do some research. Saving a few thousand now could cost several in the future.

Feb 21

What Is Foreclosure Investing?

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Today, many are looking to property for investment opportunities. Some look to redo the home and resell at a profit, some fix them up and rent them out. Either route can provide you with income and good investments for the future.

Foreclosure investing has attracted the eye of many property investors. When a home is foreclosed it means that the bank is taking ownership of the property. This usually happens when the current owners cannot meet the mortgage payments. Investors are attracted to this type of investing because they can usually get properties for quite a substantial reduction in price.

If a person bought a home for 100,000 dollars and had managed to play off 20,000, the bank would be concerned mostly with recouping its loss. The current market value of the property would have to be considered but, foreclosure properties can be bought at a very good price.

Investing in foreclosures can bring about a good profit but you have to prepare yourself for lots of hard work. Generally, foreclosure properties are not in very good condition. They previous owner was likely not overly concerned with maintaining the property once they realized that they were going to loose it. The bank also isn’t likely to put any work into the house. Banks make their money by loaning money and charging interest. Their interests are much better served by getting the property resold to someone who can make mortgage payments.

Before you buy a foreclosure property, you need to make sure it has good potential for profit. You don’t want to spend more on fixing and improving the property than you are likely to get when you re-sell it. Stay away from any property that requires major structural work or rebuilding. These properties can be fixed up for profit but usually by investors that have more experience.

The property market is good for investing. Money can be made by purchasing homes and re-selling them for profit. Foreclosures present good opportunities for profit because they generally are sold for less money. With some research and common sense, you can be well on your way to making money by foreclosure investing.

Feb 18

How To Train Your Eye For Foreclosure Investing

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You don’t need to spend thousands of dollars on real estate seminars to become expert in the foreclosure investing business. Many who have made millions in this line of business are completely self taught. You also don’t need expensive gadgets and computer programs. All you need to get started is a pen, a pad with paper, a map of local neighborhoods and on open mind.

You should start by looking at neighborhoods in streets close to you. A good radius is your commute to and from work. Perhaps leave early one day and take 30 minutes looking at one particular street. Take note of the kinds of things that you see. Is there lots of renting? What kind of conditions are the homes in? Do people park their cars on the road? Ect. Once you have a feel for the neighborhood, practice finding the home that doesn’t quite fit. There may be a home that is UN kept, or abandoned. There may be a house that just looks more run down than the others. Keep doing this on other streets in other neighborhoods.

As you look at other neighborhoods, try to get a feel for how each neighborhood is maintained. You’ll find that there may be a great deal of variance even between neighborhoods that are close together. As you do this with several neighborhoods, you will start to develop skills essential for investing. Investors must know how neighborhoods compare with each other. By driving into a new neighborhood and being able to see how the house quality compares with those of nearby neighborhoods is something that good property investors can do with 100 percent accuracy.

Generally, properties get more expensive if they are close to good amenities. Properties that are close to schools, parks, shopping and leisure facilities will likely be maintained and sell for top dollar. Properties start to drop in value when they get closer to highways and large commercial and industrial areas. Try to locate some of these areas on your neighborhood map, then drive through slowly and see if the theory holds true. Sometimes the homes are only slightly less maintained but this can mean a price difference of thousands.

It costs very little money to train your property developer’s eye. By simply purchasing a map and scouting out local neighborhoods, you can develop several of the essential skills needed for good foreclosure investing.

Feb 06

Foreclosure Home Maintenance

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Homes are most people’s biggest investment, and it makes sense to take proper care of them right from the start. Most people do their best to keep up with home maintenance to make their daily living better and more enjoyable as well as protect the investment they made in their home. Even so, there is always something that needs to be done on a house. People who are facing foreclosure generally have fewer resources to spend on home maintenance, so, usually; houses in foreclosure need home maintenance even more so than other houses do.

In addition to the minor repairs that most houses need, foreclosure home maintenance may include repairs that go beyond the typical handyman-special repairs that are a normal part of owning, buying, or selling a home.

Just about any home, foreclosure home or otherwise is going to have some or all of these common home repair needs:

• Holes in walls – it is quite common to see small holes in drywall. If there are any in your home, they should be fixed.
• Cracks – lots of homes have cracks in the sidewalks or on walls or on floor or bathroom tiles. Those are hardly even noticeable when you live with them day in and day out, but others who are looking to purchase a home notice things like that immediately.
• Leaks – If your kitchen or bathroom faucets leak, they should be repaired.
• Improperly fitted doors – Sometimes the doors of kitchen cabinets or
• Bathroom vanities don’t close exactly correctly. Usually, replacing a hinge will do the trick.

If you intend to invest in an REO property, you are almost certainly guaranteed to be taking on foreclosure home maintenance. The above minor repairs are likely to be a part of the package, and you also may face more major repairs. Foreclosure home maintenance needs often include:

1. Roof repair
2. Foundation repair
3. Major appliance repair or replacement
4. Window replacement
5. Wood rot replacement

Even though the thought of having to do major repairs may seem daunting, the price of foreclosed property may make the investment in foreclosure home repair worth the cost and effort. Of course, you should be cautious and seek professional advice before buying any property, foreclosed or otherwise or in need of repair or not.

When you do become a homeowner, whether you purchase an REO property or make a more traditional purchase, you should always keep your home’s value as high as possible by keeping up with repairs and maintenance, but since the whole reason behind foreclosures is financial, you should expect your foreclosure home purchase to come with a list of foreclosure home maintenance issues.

Feb 02

Foreclosure Home Investment: The Time has Come

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Several years ago, right after I purchased my home after a divorce, a housing boom made its way into the American real estate market. Housing prices soared as interest rates fell; sellers had the opportunity to evaluate several offers at a time on one piece of property; buyers scrambled to purchase the home of their dreams before interest rates rose again; some sellers even had bidding wars going on over their property.

All that has changed now! The seller’s market has turned around, and many of those people who were so willing to pay top dollar to get the house they wanted are finding themselves in financial woes. It is now a buyer’s market as houses all over the country sit with for sale signs in the front yard for months and even years at a time. Asking prices are being slashed to the bare minimum; the number of foreclosures is at an all-time high, and economists predict that the number of foreclosures is only going to increase for quite a while.

Regardless, real estate can still offer a decent return on investment if you take advantage of the market conditions wisely. One way to do that is to venture into foreclosure home investment.

Whether you want to purchase a house to live in or are looking for a way to make your money grow for you, foreclosure home investment is a strategy whose time has come. With the increased numbers of foreclosures that have already taken place and the forecast of even more to come, lenders are finding themselves with too darn many houses and other pieces of property in their possession.

Many folks believe that banks and other lenders are thrilled with the idea of foreclosing on a piece of property, but the opposite is really true. Banks, credit unions, asset management companies, and the like would much prefer to do what they are in business to do—banking. Most lenders find the foreclosure process ridiculously time-consuming, expensive, and contrary to their fundamental purpose which is to loan and invest money, not sell houses.

With that understanding, it becomes clear that the possibilities to make a profit via foreclosure home investment are upon us. With so many foreclosures already happening and the likelihood of even more in the near future, real estate is available at all-time low prices.

After purchasing a piece of property, you can choose one of several paths to travel in your foreclosure home investment travels. You can purchase a home to live in and sell later. You can purchase a distressed property – one that is in need of repair – and fix it up to turn around and sell it again. Many lenders find themselves not only owning houses they don’t want, but also owning houses that are in bad shape. They definitely are not in the carpentry business, so fixer-uppers can often be purchased at a steal

You may also consider using your home foreclosure investment as a rental property. All those people who are losing their homes still need a place to live, and they find themselves renting. Some people are hesitant to buy in today’s economy, so they choose to rent as well. Students rent all the time. Lots of people rent.

Home foreclosure investment is an opportunity whose time has come.