| What should you buy as an investor or a first time | | | | with homeowners that are losing their home, which can |
| homeowner? Should you buy bank owned or | | | | be tough. The process to work with pre-foreclosures |
| pre-foreclosure property is the question to ask. Let's | | | | is called a short sale, which requires you to understand |
| take a look at the pros and cons of both types of | | | | the bank or lenders process to initiate and execute a |
| buying techniques. | | | | short sale. This is not the easiest thing to do but if you |
| Bank Owned or REO - I know a lot of investors that | | | | want $25,000, $50,000 to $100,000 equity stake in a |
| buy bank owned because it is easier. You will be | | | | property then a little work should not be a problem. |
| buying the property with a free and clear title. That | | | | How bad do you want to make money in real estate? |
| means no surprises with liens or tax issues on the | | | | The bank owned properties that are flooding the |
| property. The property will be vacant so you will be | | | | market have some great buys. You will have to keep |
| able to start rehab work on it right away. You will have | | | | diligent buy watching the areas you want to buy in |
| to be careful when buying a bank owned that you do | | | | then taking action when you find the right deal. A |
| not overpay for the property, do the numbers and | | | | fellow investor just found a $235,000 bank owned |
| stick to your offer. | | | | home that was being sold for $129,900. That is an |
| Pre-Foreclosure - When buying pre-foreclosure you | | | | incredible discount with over $100,000 equity once you |
| will have more things to worry about such as the title | | | | purchase and rehab. The rehab cost to get this home |
| being clear. You will have to make sure there are no | | | | up to speed was about $10,000. |
| back taxes, old water bills, sewer charges or title | | | | Both types of investing or buying techniques have their |
| issues. The current owners or tenants may not want | | | | advantages but there are plenty of incredible deals |
| to move out. | | | | doing both if you look hard enough. Get out there and |
| To buy as a pre-foreclosure you will have to work | | | | start buying today. |