Buying Foreclosures

Investing in foreclosure property is a great way to set up another stream of income. Many people decide to invest in a foreclosure property so that they will have some additional money coming in each month. But before you start looking for a foreclosure property to invest in, you will want to make sure you know what to look for.

Assessing a foreclosure property can sometimes be the most difficult part of the buying process. It is during this stage that you will decide which property is best for you, and how much money you think you will be able to make. Remember you make your money when you BUY.

When assessing a foreclosure property the first thing that you want to do is find out how much the repairs will be before you can re-sell it, or set it up as a rental property. Every dollar that you have to put into the home will cut back on the amount of profit. If you are not skilled enough to make an accurate assessment in this area, you will want to get a contractor to look at the property. They will be able to give you an estimate of how much the repairs are going to cost.

After assessing the repairs, you will then want to figure out how much profit you think you can make on the home. This may seem difficult, but you should be able to make an educated guess without many problems at all. The first thing that you will need to do is factor in all of the repair costs. After that, if you plan on renting the home, you will want to get an idea of how much rent you can charge per month. This will give you an idea of your monthly cash flow. You can then take this number to calculate the amount of time that you will need to make back your initial investment and start profiting. If you are going to be reselling the house, get an idea of what the market value is on the home. This can be done by checking out similar homes in the area. You can easily get CMA (competitive market analysis) free from myself or your local Realtor. After you have done this, you should be able to calculate your profit.

Investing in a foreclosure property is a great way to make some extra money. Who knows, you may find yourself buying a second property before you know it.

When you build bridges you can keep crossing them.