What To Look For In A Bank Foreclosure Listing
With the real estate market in a significant downturn, many new investors today are looking at bank foreclosure listings for bargains or first investments. A bank foreclosure listing can be a great place to find that perfect rental property or even a do it yourself fixer upper. In some cases you may even be able to find a gorgeous home that someone simply could not afford and was forced to give up. There are several things I look for before going out and examining a bank foreclosure listing.
Guidelines To Looking At A Bank Foreclosure Listing
These guidelines hold true whether you are looking at a commercial real estate foreclosure or a residential real estate foreclosure. Both properties will have similar things that you want aware of before you go out and look at a property.
The first thing you want to look at is what broker is selling the property. This becomes important, as sometimes certain brokers will only sell properties they know they can move. If you find a quality broker you can work with on their bank foreclosure listings, then you can also examine multiple properties in one shot. In addition they may be able to work out better deals on multiple properties that can turn into a life long relationship. But looking at it from the start up perspective it gives you one point of contact to research and trust in as opposed to looking at many different properties.
The next thing you want to be aware of when looking at a bank foreclosure listing is the location of the property. There are few things you cannot change or improve on when looking at a property, and the one thing that will not ever change is its location. When investing in a property, you basically are speculating on the neighborhood that it is in. If you can see positive things for that area five, ten or sometimes even twenty years down the road then you can tolerate an inferior home. This is what flipping is all about, finding properties putting work in and selling them for a profit.
The last thing is the cost. This will be very important as this will directly affect your bottom line and how much profit you can pull out of the property. This is quite possibly the most important part of looking at a bank foreclosure listing.
Follow the steps above and you will be well on your way to making money in real estate.