We have all heard how investing in real estate can make us a lot of money in a short amount of time, however there is more to it than meets the eye. Simply purchasing a property to resell or rent to tenants is not the end of the story. Smart real estate investors look for properties that are below market value. A good way to find these is to look at foreclosures. Some homes that have been foreclosed on will be ready to rent or resell at a profit. Other buildings may need renovations or updates in order to sell them. Working with a trusted real estate agent who specializes in foreclosures, knowing what you are investing in ahead of time by carefully looking the property over and making the best deal you can is the best way to come out ahead.
Get a listing of properties that have been foreclosed on
Obtaining and reading a listing of properties that have been foreclosed on before you look at any of the properties that a real estate agent may want to show you can have its advantages. Ideally a listing will have a photo of the property as well as any pertinent information about the property. You will know ahead of time what features and amenities the property has. If you are planning to purchase the property strictly as an investment, these features can be strong selling points. Other pertinent information will include the asking price, which usually can be negotiated even on a property that has been foreclosed on. Most banks, credit unions and mortgage companies want to get rid of these properties as quickly as possible. The lot features such as lot size, sewer and utilities should be listed as well as building interior and exterior features. If appliances are going to stay they will be listed as well. Homes that have been foreclosed on will not have a tenant or homeowner there so the real estate listing will be your main source of information. This also generally means possession after closing is immediate so there is no wait for the current tenants to move out. This is the best way to make a quick turn around on your investment.
Viewing the properties
Once you have narrowed the list down by looking through the listings you obtained then contact a realtor that specializes in the type of properties you are seeking if you do not already have a realtor you work with. If you want to look strictly at properties that have been foreclosed on seek a realtor that knows about selling this type of property. Take the real estate listing with you so you can jot notes down about each property as you go. If you wait until you get home, pertinent information may be forgotten. Ask the realtor to find out the possible selling price of the home if it were put back on the market immediately. Find out what properties in that area rent for if that is your goal. Most real estate agents know this information and will be more than happy to help you.
Many people assume that the real estate training that licensed real estate agents have taken give them in-depth information on dealing with foreclosures. This is a real misconception. Savvy real estate agents often invest in additional foreclosure real estate training so they can lead their clients down the right path and know the answers beforehand. There are numerous seminars as well as various books and courses that help real estate agents understand foreclosures inside and out.
Advantages of real estate seminars
Like any seminar, a real estate training seminar that deals specifically with foreclosures can give a real estate agent a real advantage over their competitors. Real estate training seminars generally offer information on the pitfalls to avoid, hidden costs, creative financial strategies as well as current foreclosure listings. This information can be invaluable to real estate agents current clients who are looking to purchase property that has been foreclosed on as well as potential new clients. Some seminars will direct real estate agents who want additional information to their books or advise them to take a course where they can get more in depth information.
Other ways to learn
If attending a seminar is out of the question there are books as well as foreclosure courses that real estate agents can take. Some of these books and courses work hand in hand with the seminars and some stand alone. Some real estate training courses can be taken online although most of them meet in person once or twice a week. When looking at courses use your own judgment. Other real estate agents in your area who deal with foreclosures may be willing to guide you to the right information. Remember that you need solid information and not the next get rich quick scheme. Your clients are counting on you to be informed.
Stay on top of the real estate foreclosure market
No matter how much real estate training you invest in if you do not stay up to date on the latest trends, laws and information you may find that your client base is dwindling. The real estate market is changing. Foreclosures are at record levels and house prices are plummeting. Savvy investors are looking for real estate agents who know the foreclosure market inside and out to help them make good decisions that they can profit on. Advertise your foreclosure real estate training. Tell current clients that you can help them purchase a foreclosed property and then let them know why that may or may not be to their best advantage. Keep your knowledge up to date, keep your skills sharpened and put your real estate training to work for you.
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