Is Foreclosure Auction Investing Right for You?
If your a real estate investor or property flipper and are wondering how you can still make a substantial profit in today’s softening real estate market you should consider purchasing your next property at the foreclosure auction. The dramatic rise in defaults and foreclosures nationwide and the general downturn in the real estate market have created a “perfect storm” for real estate investors to make substantial profits by purchasing distressed homes at the foreclosure auction. Every week a small group of savvy investors throughout King, Pierce and Snohomish Counties are routinely buying these properties for 25-40% off market value.
For most investors, however, the foreclosure process can prove daunting. Excellent buys are available, but they require research, preparation, patience and persistence. Without the right experience and specialized local knowledge the process of finding and evaluating properties, bidding at auction and funding the purchase can be intimidating and costly. There is an awful lot of information to know in order to avoid the potential problems and pitfalls one can run into when buying foreclosures. It is extremely important for an investor to get up-to-date auction information and act on it as quickly as possible. A solid tracking system must also be in place since the chances are an investor will be evaluating and pursuing several properties at once often over a period of several months.
Some of the important items every investor needs to consider when evaluating properties are
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What is the market value? What can I turn around and sell the home for?
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What is the condition of title? Are there unpaid liens and judgments you may become responsible for paying?
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What is the condition of the property?
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What should my maximum bid price be?
With the proper knowledge and the right team and resources on their side an investor can greatly reduce the risk inherent in purchasing foreclosed homes at the auction and reap the rewards time and time again.
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