| An investment property foreclosure is simply real | | | | investment property foreclosure, that means they |
| estate that's headed, undergoing, or has gone through | | | | must maintain that house and spend on it to keep it a |
| foreclosure. Foreclosures and other properties of the | | | | commodity that can be sold. |
| same nature are very attractive houses despite most | | | | Short Sales |
| of them appearing to be begging for a new coat of | | | | You can also invest in properties that have yet to |
| paint. They may need extensive repairs and are an | | | | undergo repossession by lenders. A good way of |
| eye sore for common people, but for investors, these | | | | pre-foreclosure investing is known as short sales. In |
| houses are a ticket to financial freedom. | | | | this business, you will negotiate with the lender to |
| There are various ways to make money through | | | | accept a lower amount than the mortgage owed so |
| these properties. One way is by rehabbing them. This | | | | you can purchase the property. Because you |
| business, also known as fixing and flipping houses to | | | | purchase the house at a lower amount, you can |
| many, concerns buying dilapidated property. The house | | | | probably add around $10,000 on its purchase price and |
| in disrepair will then be repaired and beautified so it can | | | | resell it to other investors such as rehabbers and |
| be sold for a high price. Rehabbers prefer distressed | | | | wholesalers. |
| properties because they are cheap but basically, any | | | | Flipping Homes |
| property will do. REOs, or real estate owned | | | | Television shows that feature a dilapidated house |
| properties, for example, are often rehabbed by | | | | being flipped into a beautiful home that can be sold for |
| investors. | | | | a high price are talking about rehabbing. However, |
| What are REOs | | | | that's not the only way of flipping investment property |
| REOs are also known as bank owned homes. They | | | | foreclosure. Another method is called wholesaling |
| are owned by lenders like banks. These houses have | | | | houses. In this business, you will not need to make |
| undergone foreclosure and were not sold during the | | | | extensive repairs on the property. Sometimes, you |
| bank auction. Because their number is growing, bank | | | | won't even personally inspect it. You won't buy it either. |
| inventories are being filled with such "non-performing | | | | What you do is to place it under contract to get a right |
| assets." Lenders do not like to keep these houses in | | | | to purchase the house and then assign the contract to |
| their books. One reason is because they do not want | | | | an end-buyer who will then buy the house. You get a |
| to spend on maintenance. If they will keep an | | | | fee for doing this. |