Turning Foreclosures Into Profit

So You Want To Get In…
They are all over the news. Everything you watch and read makes some mention of them: foreclosures. After a while, the thought occurs, “Could I get in on this and make a buck or two?”

The short answer is “Yes.”

The statistics are dramatic. Two million homes are falling into foreclosure in 2009. Housing prices have been dropping like rocks for a couple of years and now seem to be feeling around for the bottom. Lending rates remain low, some weeks historically low.

Uvestor Opportunity:
While there is definitely money to be made, there are also some important considerations to keep in mind before embarking on the process. Just because a house is being sold at a discount does not necessarily translate into guaranteed profit.

Be aware of what money is available to spend. Remember that the down payment is only the beginning. There could be multiple mortgage payments and renovation costs, as well as taxes and unforeseen expenses during the selling time.

Also, be aware of where you are buying. Remember the old saying, “Location, location, location.” Be informed about what other houses are for sale in the same area and how long they have been on the market. Find out what sales have taken place recently and what the final selling price was. It is tricky, especially for a beginner, to enter a foreign neighborhood, size it up, and make a tidy profit off a property in it.

Finally, remember the options. If selling is not going as well as hoped, renting is a viable alternative in many situations. Let the storm pass and go for it again when the time is right.