With so many foreclosures on the real estate market, it may be profitable to buy bank homes as investment properties. This requires some preparation and money to invest.
With so many foreclosures on the real estate market, it may be profitable to buy bank homes as investment properties. This requires some preparation and money to invest.
Real estate-owned (REO) homes are properties that were foreclosed and are now owned by the lender. Buying an REO property requires planning and knowledge of how to get the best possible deal. The bank will often fix up a property it owns in order to get the highest possible price. If you want to buy bank homes and get a profit, you probably want to find properties that haven't been fixed up yet.
For website links to foreclosure listings of major banks and government entities, go to this article. It includes the link to thousands of U.S. Department of Housing and Urban Development (HUD) REOs.
When you buy bank homes, home renovation is typically what creates the profit on the property. Make a list of the problems you see from biggest to smallest. Focus on the biggest issues first, and if you have money left over, eliminate the small problems as well. Follow these tips to help save money and ensure you get the most for your money:
- Get multiple quotes from contractors on any work you plan to have done. Quotes can vary, and most contractors offer them for free.
- Don't forget the front yard and exterior of the home. These two areas are the first thing potential buyers will see.
- Try to make the home as appealing as possible to the largest number of people. Stay with safe colors and appliances that are liked by the majority.
Once you renovate a home, you can sell it. It is important to make it look as good as possible in order to sell it quickly, for the best possible price. Don't forget to clean the property and make it look perfect. Most likely, your home will first be seen online. Many listings have amateur pictures of the house. However, it's best to hire a professional photographer, who knows how to take pictures that show your property in the best possible light. A real estate agent can help you sell your rehabilitated properties quickly. To find a listing agent in your area, go to Reply.
Click here to get free foreclosure listings.
You can make good money buying an REO property and fixing it up. The key thing to remember is that when you buy bank homes, you make your profit by reselling it for more than you paid, so the key factors to consider are always price and condition.
Photo credit: Webb Zahn via Compfight CC.