October 10, 2024

Jocuri

Mad about real estate

Foreclosures and Short-sales: Advantages, Disadvantages and More

Many investors would say that now is the best time to purchase houses. Now is the best time to purchase a house because you can get it a much cheaper price than its actual market value. However, it is not advisable to sell them. Basing on this fact, you would think that it would be difficult to find a house to buy. After all, who would sell their $100,000.00 house at half a price.
At first glance, it is indeed a bad deal. However, with the current financial obstacle we are facing today, it is not impossible to find such deal. You can easily find properties sold at a wholesale price. There are several reasons why homeowners would sell their homes lower than its market price. One is because of foreclosure, they could also be in dire need of cash. Relocating to another country can also be a reason.
Advantages
An obvious advantage of purchasing foreclosures is that you will be able to buy the estate inexpensively. This in turn is a good investment. With all the people losing their homes, you can resell the house or have it rented. You can find terrific homes in prestigious neighborhoods such as Power Ranch in Gilbert, Arizona
Many investors are earning continuously because of this. They are constantly looking for properties to buy.  They check listing from banks and different lending agencies in order to land a good deal. After purchasing the properties, they can sell it right away or make few repairs first. Repairing the house will give it more value. As a result, the investors can earn more from its sale.
Disadvantages
Although it may look like a good deal, not everyone is eligible for the said purchase. Let us take the above property for example. It may be offered at half its market price, however, you have to make twenty purchases. That is still a million bucks. Not everyone can generate that amount in a limited time.
Another disadvantage is that usually, the properties sold are not in good condition. Some might even cost you more if you have it repaired. There are also houses occupied illegally because it has been empty for quite some time.
Another difficulty when dealing with foreclosures is that some of the properties have issues in terms of the titles and other related documents. It would be very tiring to deal with these kinds of issues especially when you need to resolve it right away.
Although this is the case, you can still take advantage of it. First, you have to know where to look for properties sold on a bank owned basis in nice areas like Power Ranch in Gilbert, Arizona. This way , you can check the houses and be aware of the possible problem in the future. You do not have to shell out large amount of cash as well. Several banks and lenders offer flexible purchasing arrangements for foreclosed properties. They are ready to work it out with willing investors.
When engaging in this type of business, it is important that you are aware of the possible challenges instead of just focusing on the advantages. By doing so, you will be able to handle the issues better.
Summary:
The real estate industry has offered a lot of opportunities. However, you should know what you are getting yourself into before closing any deal. If you are complacent, you can be losing instead of earning.