Buying repossessed homes is one of the best opportunities available in real estate investment. Because so many people are now unable to make payments on their mortgages, lenders are becoming overrun with repossessed homes. The lenders sell these homes at a foreclosure auction in an attempt to get rid of the properties as quickly as possible. Since lenders aren’t looking to make a profit on the repossessed homes, investors can often find great homes at well below market value prices.
Also known as REO properties, foreclosed properties and bank owned properties, repossessed homes can often appear to be a great deal, but investors should be wary. Many repossessed homes need work, whether it be major repairs or simple renovations.
Before bidding on any property at an auction, be sure to thoroughly evaluate the investment. This ensures that the repossessed home you’re considering isn’t a perpetual money pit. Look at other properties in the same area and make a note of rent prices and sale prices (depending on if you plan to resell the house or rent it out for a residual income). View the property, making notes of what repairs or upgrades it needs to be marketable.
Repossessed homes are a great way to start your real estate investment portfolio. Just be smart about it. Too many investors make the mistake of seeing a house worth $100,000 for $30,000, jumping on it, then find out that it needs too much work, or it won’t bring in enough income to make it worth it. Don’t make this same mistake!
Many banks have repossessed homes listed on their websites. Here at Realnet, you can view our foreclosure listings to find the perfect property for you. When you buy through us, as opposed to buying through the bank, you get all of your questions answered. We can help you find the perfect Florida foreclosures to meet your goals as an investor.