Find more properties to boost your portfolio it certainly is not a simple task. As a real estate investor looking to buy foreclosed or recently foreclosed homes in any market, you have probably wondered at some point how you can go about gaining more properties for your portfolio. One of the most important things to remember is that you are always looking for bargain property whether you’re buying a REO property, bank-owned foreclosure, or any other type.
Find more properties by getting the best deals on foreclosures
If you want to get the best deals on foreclosures or bank-owned homes, you need to target the right market and find the properties that fall into your target markets. You can’t just look for vacant properties needing repairs because there is not a target market for those types of properties. But you can target any property in any market and this article will give you several tips to do just that. We will discuss taking over the deed on the unpaid property from the original homeowner to anyone who is willing to pay the asking price, target all buyers in any market, and take any properties that come up for sale in any market.
Target foreclosed or bank-owned properties
A good way to target foreclosed or bank-owned properties is to check out properties in any market where the price hasn’t been driven up to the highest level in years. In an unsteady market, people who own homes in good repair and are willing to sell will likely be trying to unload their properties to minimize their risk and get a better return on their investment. Don’t be shy; simply look for properties that have seen minimal, if any, increase in value over the past year. Take note of these properties and call the county clerk’s office to see if there are any taxes due on the property, which could make it more affordable.
Be extra careful with taxes
Many buyers don’t care about taxes, because they are so focused on paying the down payment. But they should think about taxes while they are shopping around because they could end up paying an additional property tax to the county, which could be higher than the actual value of the home. In areas where property values have declined, the tax rate may be lower, but you can still expect to pay a bit more each month. Also ask about the lender’s policy on liens and encumbrances. The lender may have an early-payment policy (with penalties) that will kick in if you fall behind on the loan.
Work alongside with a real estate agent
If you want to add to your portfolio of properties for sale, consider working with a real estate agent. A real estate agent can help you list the property and negotiate an open market price with the seller, even if the seller has decided to list the property for an unreasonably low price. Real estate agents usually work with sellers who are motivated to sell their property quickly. Plus, they can search the online classifieds for properties that fit your criteria. They can also assist you in preparing all of the necessary paperwork, which may take a little extra time and effort, but will save you from having to deal with the lender on a property sale.
For sale by owner properties
You can also look for “for sale by owner” properties. These types of homes may not have been pre-owned, but you can purchase them at a lower price than they would normally cost. Some owners may be looking to sell their homes for one reason – to move on to greener pastures, but you can buy a home for much less than you would normally pay. However, keep in mind that the lower price is probably because there are many maintenance costs that are not reflected in the open market. It is up to you to evaluate whether or not the property has potential.
Search the local real estate magazines
If you already have a few portfolios of properties for sale, you may want to start searching the local real estate magazines. These publications will offer a wide range of listings of homes and lots for sale in your area. You may also find information about property tax rates, deed restrictions, and other fees and charges that may affect your ability to purchase the property. This information will give you a better idea of what to expect when you go to the property, as well as how much money you should ask for the property.
Network with other real estate investors
Another thing that you can do to build your portfolio is to network with other real estate investors. Find a local realtor who you can rely on to represent you and get you in touch with buyers. Other investors may also be willing to help you sell your portfolio, and may even help you advertise your listings. Networking with other investors will allow you to make connections that may be important to you in the future.
Real estate investing can be an exciting and rewarding career. It allows you to establish financial goals and build a strong personal real estate portfolio. By staying organized and networking with other investors, you will be able to easily meet your many real estate investment goals.