Foreclosures vs. Pre-foreclosures vs. Fixer Uppers
Foreclosures vs. Pre-foreclosures vs. Fixer Uppers
I am often asked if foreclosures is the only way or the best way of investing.
The answer is NO.
Let me explain the differences here.
These are MY definitions and only for the purposes of this blog. By no means am I giving you the definitive foreclosure descriptions here.
Foreclosure refers to a house that has already been reverted to the lender and is being listed anew by the bank. I also refer to this as REO property (Real Estate Owned) which implies property is owned and managed by the bank.
Pre-foreclosure refers to a house that's in default and is behind in payments. It could be in various stages of being foreclosured upon.
Fixer uppers also known as Handy Man Specials.
I work and search out all kinds of properties including the 3 stated above.
You need to find a real estate bargain where you can and in competitive housing markets, one can't be too picky as to the source of the "deal"
By far, the house that's already been foreclosed upon and managed by the Bank (REO) is the hardest area to focus on if you are limited on cash or experience. Especially in a hot Real Estate Market. For an experiences investor, this is a prime area as he/she can negotiate directly with the bank/seller and get some good deals from them.
Pre-foreclosures are where the home owner is behind on his payments. This is a very competitive marketplace as you'll find alot of people chasing after these type of properties. We'll go into how you can differntiate yourself and how you can get into these deals where others will get turned down in an upcoming blog.
Fixer-uppers are another area where a new investor will find some good deals. One thing you have to be careful of is the structural integrity of the house. Do your homework and seek out professional inspection services to make sure you are not getting a lemon.
I'll cover each of these individually in future blog postings.
You need to keep an eye on any bargain in any real estate market and not limit yourself to just foreclosures.
Good luck and happy investing
filed under: foreclosure investing
I am often asked if foreclosures is the only way or the best way of investing.
The answer is NO.
Let me explain the differences here.
These are MY definitions and only for the purposes of this blog. By no means am I giving you the definitive foreclosure descriptions here.
Foreclosure refers to a house that has already been reverted to the lender and is being listed anew by the bank. I also refer to this as REO property (Real Estate Owned) which implies property is owned and managed by the bank.
Pre-foreclosure refers to a house that's in default and is behind in payments. It could be in various stages of being foreclosured upon.
Fixer uppers also known as Handy Man Specials.
I work and search out all kinds of properties including the 3 stated above.
You need to find a real estate bargain where you can and in competitive housing markets, one can't be too picky as to the source of the "deal"
By far, the house that's already been foreclosed upon and managed by the Bank (REO) is the hardest area to focus on if you are limited on cash or experience. Especially in a hot Real Estate Market. For an experiences investor, this is a prime area as he/she can negotiate directly with the bank/seller and get some good deals from them.
Pre-foreclosures are where the home owner is behind on his payments. This is a very competitive marketplace as you'll find alot of people chasing after these type of properties. We'll go into how you can differntiate yourself and how you can get into these deals where others will get turned down in an upcoming blog.
Fixer-uppers are another area where a new investor will find some good deals. One thing you have to be careful of is the structural integrity of the house. Do your homework and seek out professional inspection services to make sure you are not getting a lemon.
I'll cover each of these individually in future blog postings.
You need to keep an eye on any bargain in any real estate market and not limit yourself to just foreclosures.
Good luck and happy investing
filed under: foreclosure investing
posted by Mr. Foreclosure at 9:56 AM
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