Profiting from Foreclosed or Distressed properties is not "rocket science" if you understand the basics.
Anyone who invests wants to make MONEY!
There is an old saying in that states “You make your Money when you first BUY the home, not when you sell it!” That means that when you are knowledgeable about your community, understand a bit about what it takes to bring a home up to saleable condition, have a goal for your profit on that home, you have already made money by purchasing that property at the RIGHT PRICE!
My wife and I during our days of buying and selling homes tried to remain local, but did expand out almost 60 miles when we found properties that fit our parameters for SUCCESS!
I will tell you that with today’s gas prices, we might not do that again, but the most money we realized on a single home was an older home in a nice area and neighborhood about 35 miles away from where we lived.
Why should you know about all the real estate in the area? It’s because this can help you determine what the market will bear in regards to price and condition. I have bought foreclosures in neighborhoods where there were many homes for sale, worked on them for a couple of months, put them on the market at prices close to or even under what the average in the neighborhood told us, and sold them before those homes that had been for sale for months. HOW? By making them RTMI! Ready to Move IN!
Most people today do not have the time, money or inclination to really fix up a home. If they are first time home buyers, which most are and can’t get a 203K form of FHA loan but could only do a straight low down payment FHA loan, they do not have the funds to do any FHA required repairs. (I will talk about financing later). They want it RTMI! Where most of the other properties in the neighborhood may have been in decent condition, we make our home feel like brand new with NO defects outside and inside. RTMI!
That’s why your research is so important. You really need to KNOW YOUR MARKET. Make notes of areas that are selling or not, values and valuations, etc. All of these put together should give you a good “feel” to what is happening in the market. This will absolutely help you to ensure PROFIT and SUCCESS in your efforts!
Profitable Foreclosure Hunting
Inspecting the Exterior of Recently Abandoned Foreclosure (Free Video)