Property for Investment
What is the best way to find good property for investment opportunities today? There are several great methods for identifying and purchasing investment properties. Options range from REO bank owned properties to HUD foreclosures and distressed sellers. Below are explanations on why these types of properties are ideal for property investing.
- REO (Real Estate Owned) properties are bank owned properties which have gone through the foreclosure process without successfully finding a buyer. There is no longer mortgage debt on the property, and the bank is just looking to recover its costs and loan payment. These are great opportunities as the banks usually will list the properties at below market values to spur multiple bids. Ask your Real Estate agent for details on identifying REO properties and creating a search list for you on REO properties.
- HUD Foreclosures are FHA backed mortgage loans that have gone into the foreclosure process. There are many sites that auction off these foreclosed homes with priority going to owner occupied bidders, and second priority going to investment bidders. Search for HUD foreclosures in google to find the closest company offering HUD foreclosure auctions in your state. Generally you can get a HUD foreclosure home for 70% of the value or lower, depending on the aggressiveness of other bidders.
- Basic Foreclosures are Non FHA backed mortgages that have gone into foreclosure. Check with your local real estate agent, bank or even other property investors to find out when potential investment properties can be found through the foreclosure process.
- Distressed sellers are usually sellers who are trying to avoid the foreclosure process. Usually they will sell at a price just above their current mortgage payoff price so that they do not have to enter into the foreclosure process, and can fulfill their debt payment to the bank. Look for ads in the newspaper or ask around the real estate agent community for distressed sellers.
As you can see, property for investment can be found all over if you look for the right criteria, especially in hard economic times. Remember that the majority of profit is made at purchase time, by securing a solid investment property at a good price, and acquiring an investment property loan at a reasonable interest rate.
Tags: Property for Investment