Archive for the ‘investment property’ tag
Affordable Housing As an Investment
When you hear the term affordable housing you’re more likely than not to think of low income assisted home purchases or rentals. To what if you’re fortunate enough to think about an investment? What’s the best way to go about doing that?
By Low, Sell High (or lease out)
Buying a house or property at a good price is easier nowadays due to the fact that many homes are in foreclosure. First off, put the guilt you might feel in doing so away. It’s not your fault that someone is losing their home and if you don’t buy it, someone else will. Forget the preconceived notion that you’ll pay a mere pittance for a mansion. In 2007 the national average for buying foreclosed property was approximately 25% below the market value. You may, in reality, only enjoy about a 10% discount. Just remember not to sell until the economy bounces back!
There’s Always a Catch
There are things to watch for when taking the leap into the pool of foreclosure investment. Be sure to do your homework; knowing how to do a title search (check for second mortgages), find out just exactly what “as is” entails. Don’t end up spending the 25% you saved on a leaky roof, or plumbing and electrical repairs. Unfortunately, some former homeowners will even sabotage their lost properties by kicking holes in walls and doors and generally trashing the place. There are three basic ways in which to purchase these homes. Real Estate Owned properties (REO’s) is the least risky; Auction, possibly the most risky; and Pre-foreclosures. With the latter, be sure to make the sale “subject to mortgage”.
Profiting from someone else’s loss may seem cold, but as I’ve stated; if you don’t seize the opportunity it will be your loss someone else will profit from.