Foreclosure Investing –  Patience and Planning Can Bring Rewards!

With the inventory decreasing and decent houses flying off the market, foreclosure investment is the hottest buzz word these days! Investors who are looking for major property flipping profits can always go for foreclosure homes,Foreclosure Investing do a little repairs and renovations here and there and then sell them off at great profits. Transforming foreclosure properties into cash generating rentals is also a good idea, as the demand for rentals is increasing immensely as summer arrives.

However, finding good foreclosure properties is one factor that emerges as the most difficult task for first time home buyers. Waiting for homes to arrive on listings usually backfires as all the good homes are already off the running by then. The competition in the market is extensive at the moment – you need to be on your feet at all times if you wish to score a good deal!

A lot of people rely on property auctions to find a decent foreclosure investment opportunity for them.

However, there have been way too many cases where buyers end up overpaying for a house. Strikingly low prices being quoted at these auctions fuel bidding wars between potential buyers and at the end the deal may backfire as you over pay for a house whose real value is way below the cash amount you paid for it.

So what’s the solution? Are there really enough foreclosure homes in the market to think about this prospect? And if they are, how can one get their hands on a decent deal without burning a hole in their savings?

According to the analytics obtained by CoreLogic, around 20,000 foreclosures were completed in Chicago alone within the 12 month period from Feb 2012 to 2013. However, it’s true that it does take a little time for these properties to become bank owned and become available for resale.
More important in this regard is how you find these properties and sell them off at a good price. Investors not only need to be competitive but also proactive in their research if they are looking for a chance to score big in the current real estate market.

When it comes to property listings, the marketing strategy in vogue these days is listing the property at a far lower price than what it's actually worth – this attracts buyers to overbid and more than often results in a major loss.

Getting in touch with a real estate investment company or agent is more of a viable choice for investors, because this way they can get their hands on a much secure deal. Though the prices may be somewhat higher, you can be assured of minimum repairs and renovations costs and put the property up for a profitable flip or even rent.

Coming to localities, the metropolitan area does have its charm, but investing in foreclosure properties in suburban neighborhoods is also proving to be a winning deal for a lot of investors. At the end of the day, it is all about the location and appeal of the foreclosure property that will bring real profits to you.
As the market is in favor of buyers right now, most experts agree on the prospect of investing in a foreclosure home and then turning it into a rental.

Source: Market analytics by CoreLogic