Home » Real Estate

Foreclosed Homes: Can Make For Profitable Real Estate Investments

Jan 15, 2008
Repossessed real estate, also known as a "foreclosure", is often sold at up to half of the market price. This means that there is real potential for huge profits, if handled correctly. Real estate often becomes a foreclosure due to a financial hardship of the homeowners' inability to pay the monthly mortgage payments. Often, this real estate, sold in foreclosure auctions to the highest bidder, can make for a very profitable investment for investors.

Obviously, buying a foreclosure property can bring a substantial financial return or be a huge risk. You need a full understanding of pros and cons of real estate investing prior to making your first purchase. However, as long as you take into account the factors below then you stand a decent chance of making a profit.

Location in real estate is perhaps the biggest factor in deciding its asking price. Investors sometimes prefer to purchase homes that are located near areas where the unemployment rates are low, schools, universities, hospitals and other establishments that make for a prime location for homebuyers. Remember that if you buy foreclosure right, and they are in a popular location you are likely to make a very healthy return on your investment.

Condition of the property will directly affect the profitability of your investment. You will need to employ a professional real estate inspector to ensure the property is structurally sound. Neglecting this step could cost you substantial amount of money, not to mention that the property may be worthless. Foreclosed properties that need a bit of renovation may be an opportunity to cash in. With the money that you save on the purchase, fix the problems and claim the profits once you sell it.

It necessary for you to check the legal documents that describe the ownership of the foreclosed property; "secondary liens" and "adverse claims" need to be addressed. Make sure that you have access to the title deed of the house and that all of the people listed approve of selling this real estate. If you neglect to ensure that the house is legally for sale and has a clean title, you may be burdened by delays.

Here is a helpful hint, finding a real estate agent to assist you in buying foreclosed homes is usually a great start. It is easy to find lists of foreclosed properties through real estate agents although you may have to pay a small subscription fee for some of the information. Additionally, real estate agents are likely to understand the current market conditions, and advise you on which property the property, which may yield the greatest profitability.
About the Author
Thomas Bladecki is the author and can provide additional information about foreclosure listings, current real estate news and conditions on the most popular cities, visit Home Foreclosure Help to get the latest news and information about the foreclosure dilemma.

Read valuable information in his Foreclosure Blog.
Rating:
Please Rate:
(Average: Not rated)
Views: 137
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources