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Pre Foreclosure Home Property Investing

A house in pre foreclosure or foreclosure presents an excellent opportunity , you will definately want to look at foreclosed property. National Association of Realtors said that there will be more than one million  over the next 2 years foreclosed properties . Consider before purchasing a property in the foreclosure marketplace, be sure to do your home work. Purchasing a house in foreclosure can be quite simple , but but there are risks . (You might consider using a reverse mortgage product to fund your property investments).

ordinarily, you can buy one through the state process. It’s generally held at the local courthouse in the clerk’s office or in front of the foreclosed house. Property Investing from buying at an auction, probably represents the highest potential payoff, but also the most venturesome.

You might want to think about purchasing a house in pre foreclosure. Pre foreclosure properties can be located by researching the public notices about houses in nonpayment. The data is available from such Internet firms as Homeforeclosures.com, HomeForeclosure.com and RealtyTrac.com. You’ll pay a fee, though, for their services.

There probably won’t be much competition , if any, because thehouse usually is not advertised , the deal is private . What you do is make sure that the amount you offer is enough to cover the bank loan, well below market value. . What makes it difficult for people is the idea of approaching a home possessor who hasn’t put a for-sale sign up yet .

Selling retail after purchasing a property wholesale is one of the best ways to do an investing transaction. The idea of flipping is not very popular these days, butin reality ,that is what wholesaling is all about . All you’re doing is buying at a discounted price and than reselling it in a short flow of time. There are dissimilar types of people involved in wholesaling, such as scouts, dealers and retailers. If you need cash to fund your project, you might consider refinancing your mortgage.

A bird dog or a scout , if you will, is someone who will accumulateinfo , locates potential deals and then sells the info to other investors. When you become a bird dog , very little experience or funds are necessary. The scout will locate distressed properties , gathers the information and then offers it to another investor for aprice . A scout can make $500 to $2000 on each lead he provides to an investor, depending on the price of the property and the potential net profit.

A dealer will locate a distressed property and enter into a contract with the owner. Dealers sometimes buy properties wholesale and then sell it retail or sell the contract to another investor. When you are a dealer it is more risky than being a birddog because dealers provide their own money to secure the deal. A dealer doesn’t have to deal with tenants and can make a bigger income without having to fix up the property .

What a retailer does is buy properties from dealers. Retailers fix-up properties using their own money , hence, assuming the top risk, but also receiving the greatest profit.

About the author

Sherry Fields Sherry Fields has been working in real estate since 2002. Working with the development team for the Hilton Garden Inn gave her strategic information on the commercial real estate market in Missoula. Broadening her scope she moved into the residential market and earned the designation SFR in short sales and foreclosures. Currently affiliated with Prudential Montana Real Estate, she works with both buyers and sellers "building relationships so you can buy & sell with confidence". Sherry Fields has recently earned the CREN designation - Certified Real Estate Negotiator. While price is a large part of negotiation - it is also about timing everything from the closing date to inspections, appraisals, home insurance - and it is about negotiating items that can show up in home inspections to achieve a mutually acceptable outcome.

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