Of all the investment propositions in the world, real estate is probably the most profitable one of all. The reason is because of the returns you can get on it. It doesn’t matter if you a veteran investor or a newbie, you must exercise a great amount of caution when you are making a deal. What would you categorize as a good deal? A deal that you would bring you excellent profits in the end, right? A deal where you shell out less, but earn huge returns. So if you are in the quest for looking out for cinching deals, here is what you should do:
Look out for foreclosures
If you want a good property at affordable rates, preferably at market value, you will get it through foreclosures. The profit margin would be really high here and thus too irresistible to pass. A foreclosure happens when a homeowner doesn’t have enough funds to make his mortgage payments and his house will be put up for sale. The proceeds of the sale will be used to pay off the pending mortgage. What makes it a really good deal to a real estate investor is its low price tag.
Bank owned properties also pose excellent real estate deals. You can search for such properties through online means or by going directly to the lender. A bank can own a (foreclosed) property when it does not get any buyers at the auction. If there is no good bid for the property, it goes back to the lender, here, the bank, and it would become a bank-owned property. The main reason why Bank-Owned REOs are good deals is that you don’t have to worry about property liens or any such encumbrances. Another thing is that you can buy properties with low market value; but the advantage is that there is no risk or competition.
Chatting up with disgruntled landlords
Owning a property and renting it with the aim of getting an income is a good thing. But sometimes, the hassles of looking after a rental property may force certain landlords to sell their property. You can look out for such landlords and placate them with irresistible deals. While some landlords are willing to sell the property some may not; but it is worth a try.
A property will be put up for auction when it goes into foreclosure and nothing happens there. Auctions could be risky but once you research on the property before buying it you can get a good deal on it.