A lot of investors will tell you that it is one of the best ways to make money in real estate. Of course, it is true, but there are no guarantees that you will make money. However, if it is done correctly, you can make a great profit in the end.
Due to the crunch in the real estate market and the recession in world economy there are many foreclosures. While it is a tough experience to go through, foreclosures are generally good options for real estate investors.
With a large number of foreclosures, lenders are attempting to attract buyers with great deals and offers. The lenders have put great discounts on foreclosed houses as they would like to recover their losses and move on. Consequently, based on how you want to use the house, you should be searching for the discounts. For instance, if you would like to refurbish and sell the house to make money, it is recommended to look for 20 – 30 percent discount; if you choose to rent the house with an option to buy, then you should look for 10 – 20 percent discount; if you want to rent the house out with an option to purchase, then you should be looking for a 10 percent to 20 percent discount; if you want to just rent out the house; you should be satisfied with a 5 percent to 10 percent discount.
There are three ways to purchase a foreclosure. One is to negotiate with the house owner before the lender forecloses the property. Second would be to purchase it through the county foreclosure auction; and finally you can buy a real estate owned house, also called as REO. A real estate owned (REO) house is one where the lender has bought it back in an auction. This is the easiest way of purchasing a foreclosure, but in this case you may not get a great discount for an REO property. It is always a good idea to have an experienced professional Realtor to assist you in your transaction.
When you purchase a house a foreclosure auction, you will not get the chance to inspect the house in a proper way. It can cause you many headaches because there were many cases when owners damage and vandalize the house as a way of coming back at the lender. Moreover, you should be waiting for the redemption period to come to an end, before you will get the title.
On the other side, when we talk about an REO property, you will have a great chance to make a thorough inspection of the house. Moreover, commonly, these houses are the best choices in the foreclosure market. You can even use a regular mortgage to finance the purchase of the house.
If you would like to invest in
Looking for foreclosures, land, or luxury real estate in the Scottsdale/Phoenix market? No problem, simply visit http://www.PrimeAZrealestate.com or call #1 producing Realtor Jen Wehner today at 480-748-6925 ~ Thank you for reading.
****If you or someone you know is facing FORECLOSURE get FREE assistance today at http://www.azforeclosurehelptoday.com
Tuesday, February 9, 2010
INVESTING IN ARIZONA FORECLOSURES CAN BE VERY PROFITABLE
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