| Buying foreclosure property is a good way to make | | | | needs major repairs this is a house to be avoided. |
| money for many people. But if you're just starting out | | | | Paint, paper, small repairs are all you want to take on, |
| you need to look at some very important factors | | | | otherwise you will be losing a large portion of your |
| when buying. Here are five to keep in mind when you | | | | potential profit, if not all of it. You're looking for a |
| start your search for a property you want to invest in. | | | | shabby house that's structurally sound. No major |
| 1. When you find a property in a listing that you think | | | | plumbing, structural or electrical problems. Remember |
| you'd be interested in, go and take a look at the | | | | that the amount of money you spend on repairs |
| neighborhood before going any further. The real estate | | | | comes out of your pocket right up front. |
| slogan 'location, location, location' holds just as true for | | | | 4. When buying a foreclosure property you need to do |
| foreclosure property as it does for conventional house | | | | a title search to make sure you are paying for only |
| sales. The house may be beautiful, may be grand, but | | | | one mortgage. If there is a second mortgage attached |
| be sure to look at the other houses in the | | | | to the house that you didn't know about before |
| neighborhood. If they are in decline or are in poor | | | | purchasing, you will have to resolve this second |
| condition your house will be more difficult to sell. That | | | | mortgage before taking possession. There may be |
| doesn't mean that it won't sell; it simply means that it | | | | other liens on the property, as well, and a title search |
| may take more time to sell and you may have to | | | | will reveal this. |
| decrease your selling price and take a lower profit. If | | | | 5. Take good look at yourself. Do you have the ability |
| this your first property it will be easier for you to start | | | | to finance a project of this size quickly? Do you have |
| with a house in a better neighborhood. | | | | the ability to pay cash for a property, such as in a tax |
| 2. Check to see how close schools are to the | | | | sale? Would having a second investor with you be a |
| neighborhood you're house is in. Does the school have | | | | good idea? When you are buying foreclosure property |
| a good reputation? Other amenities to consider are | | | | it is essential that financing is available and ready. |
| shopping, parks, and possible neighborhood upgrades. Is | | | | Banks do not like holding a property; they want to |
| shopping close by? Is there a neighborhood park for | | | | move it as quickly as possible. Timing is key at this |
| the kids? Is the city going to revitalize this area of the | | | | point. |
| city? All of these issues will have an impact on how | | | | Buying foreclosure property as an investment can be |
| quickly you can sell the house. They also make great | | | | a good way to make money. But, be sure to do your |
| selling points to prospective buyers. | | | | homework. It will pay off in spades. |
| 3. The condition of the house is a key issue. If a house | | | | |