I was listening to Fox News this morning and Donald Trump was being interviewed on various subjects and one was about Real Estate.
His words were that now is the time to buy real estate. A Year ago he was saying it was too expensive and he was right. Now is the time to buy.
A lot of people will be looking at foreclosures. It has been said that some foreclosure properties are selling 50% less than their previous sale price.
The warning is.
1. Check for Unpaid property taxes and who is responsible to pay them.
2. Mortgage payments: Is there a lien on the property. Who is responsible for these.
3. Are the owners off the property? Some delinquent home owners refuse to move.
4. Make sure owners have not caused any damage to the property, seen and unseen. Unseen being anything that may cause a fire or permanent odor problem. Have the whole house checked out.
5, You cannot always check the house before buying at an auction. My advise is, if the house is in a good real estate area and the price is very cheap then it will probably be a good buy. The chances are you will get your money back on the land alone.
If I was unable to look in the house before the auction and the tenants were still in the house and the area was not a viable real estate area, I would not even consider bidding for it unless it was going for a “song” and I could see potential, even if the house had been damaged.
6, Buy the home directly off the lender. The chances are that you will not get as good a price, but you are able to inspect the house before buying and that could save you thousands. By dealing with the Lender who has foreclosed on the property you are able to make sure that there is no claims against the property.
These are just some of the things to look out for, it is not meant to put you off making an investment.
If you are going to buy the property and rent it out, consider the position. Remember the old Real Estate quote ” It is about position, position, position. So keep that in mind when you are purchasing a property. I have purchased many properties and always by the ocean. That sort of property nearly always makes you a profit. In your case, if you are not by the sea then the following places are what I call “Food for thought”
1. Is it near a college or university – you may find it easy to rent to students, teachers and administration.
2. Is it near a good shopping mall? Is it within walking distance. If so, that has to be a good buy.
3. Is it near public transport? That is very convenient for those who don’t have a vehicle or cannot drive.
4. Is it near a school? Families with young children will always be looking for rentals near their children’s school.
If you are about to make an investment in property well I think you are doing it at the right time as all the signs are good for property investment at the moment.
So Good luck and may you be prosperous.