4 Tips On Foreclosed Real Estate Investing Success

Foreclosed real estate investing will take more than just having enough capital to invest. Such a venture may require you to learn more about the ins and outs of foreclosed real estate investing. Such investments also come with their own risks, just like any other profitable venture. Success belongs to the wise investor and that is what you should aim for if you wish to profit from your real estate investments.

Real estate investing is governed by rules and guidelines that you should be following. Along with such guidelines, there are also a number of useful tips that you can utilize when you venture into foreclosed real estate investing. Here are just some of them.

1. When looking at the profitability of properties in foreclosed real estate investing, one of the things that you should first be considering is its location. Location has everything to do with foreclosed real estate investing.

The right location will determine the attractiveness as well as marketability of such foreclosed real estate properties. The best locations where you can get the best deals in foreclosed real estate investing is in mid-level to upscale neighborhoods. Property investments in such areas not only will make you acquire properties that have a wider market among prospective homebuyers, they might also be easier to sell.

2. Investing in properties during an economic downturn can also work to your advantage when you are into foreclosed real estate investing. With the slowdown in the economy, some families may not be able to cope up with their higher than average mortgages and might opt to put their homes up for foreclosure in order to salvage what might be left of their investments.

And it is during these times that many foreclosed real estate can be acquired at very attractive bargains. And with the bargains that you might get will result to more profit when you put up such properties for sale.

3. During a typical foreclosed property transaction, never sign any purchasing contracts without including an inspection contingency period for the property in question. This will be able to safeguard your own interests especially when you find out about serious problems that might show up during such property inspections. Remember that most foreclosed properties are fixer-uppers, with some in need of major repairs.

Such a case is not necessarily a bad thing since they can also help bring the property prices down even lower. But you must also be able to weigh out the costs of repair with the property value that you have in mind. Be also wary of hidden problems that may crop up only during inspections. This way, you are trying to cover all the bases and keep your investment options work to your advantage always.

4. Before you go into price negotiations with the property seller, try to obtain a loan pre-qualification or a loan pre-approval letter. This will make you a very attractive potential buyer in the eyes of the property seller, knowing that financing such purchases on your part is already guaranteed. Property sellers are more likely to deal with buyers with available funds than someone whose financing capabilities might still be in doubt.

Success in foreclosed real estate investing would rely on how you follow such tips and make them work for you. It would be a mistake going blindly into any investment opportunity that comes your way. It pays to know and learn what you are getting into. That is essential to every successful real estate investor.

Attention Homebuyers: Double-Barrel Stimulus Deadlines

By Jamie Johnson The great author and speaker Og Mandino once said, “I will act now. I will act now. I will act now.” This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to their completion. First, the Federal Reserve’s Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher…and potentially even higher…over the last year. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% of the supply in a given month. When this program ends, a lack of willing buyers will likely cause MBS prices to drop and rates to rise as a result. The second shot will come on April 30th, which is the deadline for purchasers to get under contract to qualify for the Home Buyer Tax Credit program, which has been providing a tax credit of up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers. Just How Much Will Waiting Cost? While no one knows for certain what the future holds, two things appear clear. Home loan rates will likely be higher in the future, and free money from the government will be gone. These deadlines will affect both affordability to purchase and the opportunity to refinance. In a recent Wall Street Journal article, it was estimated that 37% of all borrowers with a 30-year fixed rate have interest rates of 6% or higher. The article also quotes Credit Suisse that more than half could lower their rate by nearly 0.75%. For prospective homebuyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards. If you or anyone you know is looking to purchase or refinance a home, waiting could be costly! Act now…so you can save later!

 I am here to assist you!! 

Best regards,

Jamie Johnson

Mortgage Advocate

Security National Mortgage Company

6965 Union Park Center, Ste. 470

Midvale, UT 84047

Office:  801-748-4878

Mobile: 801-792-0583

Fax:  801-303-9232

4 Tips On Foreclosed Real Estate Investing Success

Foreclosed real estate investing will take more than just having enough capital to invest. Such a venture may require you to learn more about the ins and outs of foreclosed real estate investing. Such investments also come with their own risks, just like any other profitable venture. Success belongs to the wise investor and that is what you should aim for if you wish to profit from your real estate investments.

Real estate investing is governed by rules and guidelines that you should be following. Along with such guidelines, there are also a number of useful tips that you can utilize when you venture into foreclosed real estate investing. Here are just some of them.

1. When looking at the profitability of properties in foreclosed real estate investing, one of the things that you should first be considering is its location. Location has everything to do with foreclosed real estate investing.

The right location will determine the attractiveness as well as marketability of such foreclosed real estate properties. The best locations where you can get the best deals in foreclosed real estate investing is in mid-level to upscale neighborhoods. Property investments in such areas not only will make you acquire properties that have a wider market among prospective homebuyers, they might also be easier to sell.

2. Investing in properties during an economic downturn can also work to your advantage when you are into foreclosed real estate investing. With the slowdown in the economy, some families may not be able to cope up with their higher than average mortgages and might opt to put their homes up for foreclosure in order to salvage what might be left of their investments.

And it is during these times that many foreclosed real estate can be acquired at very attractive bargains. And with the bargains that you might get will result to more profit when you put up such properties for sale.

3. During a typical foreclosed property transaction, never sign any purchasing contracts without including an inspection contingency period for the property in question. This will be able to safeguard your own interests especially when you find out about serious problems that might show up during such property inspections. Remember that most foreclosed properties are fixer-uppers, with some in need of major repairs.

Such a case is not necessarily a bad thing since they can also help bring the property prices down even lower. But you must also be able to weigh out the costs of repair with the property value that you have in mind. Be also wary of hidden problems that may crop up only during inspections. This way, you are trying to cover all the bases and keep your investment options work to your advantage always.

4. Before you go into price negotiations with the property seller, try to obtain a loan pre-qualification or a loan pre-approval letter. This will make you a very attractive potential buyer in the eyes of the property seller, knowing that financing such purchases on your part is already guaranteed. Property sellers are more likely to deal with buyers with available funds than someone whose financing capabilities might still be in doubt.

Success in foreclosed real estate investing would rely on how you follow such tips and make them work for you. It would be a mistake going blindly into any investment opportunity that comes your way. It pays to know and learn what you are getting into. That is essential to every successful real estate investor.