The Beginner’s Guide To Foreclosure Investing

Key Takeaways

  • Investing in foreclosure real estate can diversify your portfolio and increase your chance to profit, but it comes with its own set of pros and cons.
  • Individuals selling foreclosed homes are almost always motivated to sell fast and are therefore more likely to sell their home for a fraction of market value.
  • As of August 2017, the average foreclosure rate in the U.S. is one in every 1,758 homes.

Foreclosure investing is a beneficial strategy for new and seasoned real estate entrepreneurs alike. The strategy may sound advanced, but once you understand the process, you’ll have a new way to diversify your investment portfolio and increase your chance to profit.

Don’t fool yourself, foreclosure investing isn’t an easier strategy than investing in MLS residential properties, nor does it guarantee a good deal. The same due diligence rules still apply and it is necessary to assess and evaluate a foreclosure property the same way you would any other investment property. But once you’ve determined the deal to be sound, the added benefits can be astounding. Here’s a few to pique your curiosity.

The Benefits Of Foreclosure Investing

When buying a foreclosed property, the seller is almost always motivated (and every investor knows the inherent benefits that accompany working with motivated sellers).  Because the homeowner wants to get out of his or her property as quickly as possible, an investor is typically able to purchase the home for a fraction of market value.

Because foreclosure property sellers are desperate to move, they might also be willing to cover closing costs and other concessions along with offer to complete repairs.

Think foreclosure investing could be a good strategy for your business? Learn everything you need to know in our beginner’s guide:

foreclosure investing

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