ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Make Money from Foreclosure and Short Sales

Updated on September 16, 2014



The real estate industry is making a comeback and its the time is right to invest in foreclosed homes and properties. Investing in real estate is a wise decision as the returns can be substantial. However, real estate investments are not a means of making quick money, as they are not a liquid asset. The market conditions at present are volatile; with a number of foreclosure properties available at discounted prices. This trend will not last for long and soon the surplus properties available for grabs will be sold out. It is time to act now.



Things to Do Before Buying Foreclosed Property


The first thing to know is that there is no quick method involved. Investing in properties requires some amount of strategic planning. You just don't go and purchase a property. Here is what you need to do -


Determine a Market Area

You will need to identify an area where you want to purchase a foreclosed property. It is better if the area is easily accessible, one where you can drive to check out properties.


Do a Survey

Any area you pick will have more than one property on sale. Make the effort to locate every foreclosed property before you finalize the purchase.


Engage a Professional

Hiring a realtor will save you a lot of leg work. Be generous and offer them something extra in addition to regular commission. You do this and you can be assured of getting the best bargains in town.


Organize Your Finances

This is crucial because without money you are not going to get anywhere. If paying hard cash, you will be asked for proof of funds. If the purchase is being financed by a third party then you will need to have the paper work completed.


Line Of Credit

This is another option that you may choose to opt for. You get a "line of credit" from your bank. This will allow you to issue a check and give you enough time to find a mortgage company to finance you later.


More Tips to Help

The majority of foreclosed properties require remodeling; which adds to the cost of the purchase. You have to keep this in mind while buying the property. A contractor can work out on how much the remodeling will cost. On the other hand you can approach an estimator to check the property and give his suggestion. Most of the times they will provide a rough estimate based on square foot area. With a rough figure in hand you can bargain the price for modifications with the contractor.


Don't ever purchase a property directly from an owner. You might think you are getting a good bargain, while in actual you will be inviting trouble for yourself. There are known cases of sellers disappearing after the sale, without having paid the mortgage. In such case you will only have the deed copy to call your own as the mortgage company will take over the property to make even its loss.

Hire a professional attorney, realtor, surveyor or a Title Company to help you with the transaction. These professionals are qualified to ensure transactions are carried out smoothly and there are no frauds and you don't incur losses.

© 2013 Juana

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)