| You can get started in real estate in many ways. One | | | | soon be overpriced because an unaware buyer bids |
| of the methods many successful real estate investors | | | | up the price. A better way is to look for properties that |
| have used for decades is in foreclosure properties. | | | | did not sell at the auction and work closely with a real |
| Traditionally foreclosed properties are generally sold at | | | | estate agent and the bank to do what is called a short |
| a much lower cost. However most of these homes | | | | sale. |
| will require you to invest some money into the | | | | Once you have found a property you like you must do |
| property to increase the value so that you can make | | | | some research. with the help of a real estate broker |
| a profit. | | | | find out what properties like the one you want to |
| Foreclosed properties are those properties that the | | | | purchase have sold for recently. These are called |
| owner failed to pay the mortgage lender whether it | | | | comparable sales. Once you know what you should |
| was a bank, savings and loan, or even an individual | | | | be able to sell the property for you can work |
| person. Once the owner falls behind on their mortgage | | | | backwards to figure out what you should pay for your |
| the mortgage lender has the right to take the property | | | | property. Most properties will require some sprucing up |
| back and resell it to someone else in an attempt to | | | | prior to selling them. The key to making money in |
| recover the money that was lend to the previous | | | | flipping real estate you must remember that you only |
| owner. Generally the mortgage lender will be willing to | | | | want to spend the minimum amount to repair what's |
| sell the property at a reduced price to avoid having to | | | | need. Remember this is not going to be your home. |
| pay fixed costs like insurance, taxes and custodial | | | | That doesn't mean that you don't want to do quality |
| services. This allows us the real estate investor to buy | | | | work it just means that you don't want to go |
| properties at a fraction of their value and hopefully | | | | overboard spending money that you may not recover. |
| make a profit. | | | | Once you have identified the repairs you should |
| There are a couple of ways to buy foreclosed | | | | consult at least two reputable contractors to give you |
| properties. In many states the mortgage lender will try | | | | a price and a time line on how soon the repairs could |
| and sell the property at a Sheriff's sale usually held at | | | | be done. Armed with this information you will be able |
| the county courthouse in the county where the | | | | to add up all your expenses and subtract that from |
| property is located. There are many services that | | | | what you can expect to sell the property for which will |
| provide foreclosure list that you can look over prior to | | | | tell you whether or not this property is a money maker |
| going to the sale. However, many times there will be | | | | or a money pit. |
| several buyers there and what might be a bargain can | | | | |