Tuesday, July 19, 2011
Inventory for Investors in Pre Foreclosure Homes
The real estate investor who can purchase property at under fair market value is in good position to make increased profits from the deal . Where does an investor locate excellent properties at severely discounted prices ? One niche market is pre foreclosure homes. Pre foreclosure homes are homes that the bank or lender has filed a notice of default on, but the property has yet to be sold at a public auction or trustee sale. There is a period of time between the filing and the sale when the home owner still has control of the home . To stop the foreclosure, the homeowner must bring mortgage payments to current, or he has the option to sell the property . This period of time is the ideal chance for the real estate investor to make an offer on the home . As an investor, you can increase your profits through negotiating with the seller for a deep discount off of the current market value of the home . As the buyer, you will also be able to inspect the house and learn what repairs and renovations might be needed . This inspection will also help you decide the amount you will offer on the property . There are foreclosure subscription services that will provide listings of pre foreclosure homes. The fee for the service issmall , and worthwhile in time and effort saved. The old method of researching records at the county courthouse was difficult and tedious. While getting to go through the public records is free , your time should be worth more, and the little charge for the subscription service will pay you back with your first pre foreclosure homes purchase. The foreclosure market has been a favorite for the real estate investor because of the severely reduced prices. The same deep discounts can be found on these pre foreclosure homes, with the extra advantage of being able to deal and negotiate with a highly-motivated homeowner . It’s worth taking a look at the pre foreclosure homes market.