This is an article about purchasing bank owned properties for investment.
I decided to write an article with the mentioned title after having many people asked me about it.
In my understanding, for almost every state in the US, purchasing a foreclosure home is a sure thing.
Buyers are likely to jump on to properties which are acquired by the banks, because they are allegedly a great deal.
But the question is, are they? There are bank properties that are qualified to be a good investment, but unfortunately, there are also some which are not.
In order to get the best of bank-owned properties, there are considerations that must be put into action.
The first one is competition.
There is a great competition in real estate properties owned by the banks.
If you think you are ready to compete against other buyers, then you are ready for the second thing that needs consideration.
Purchase price.
There's a great competition like I said earlier and it drives up the purchase price.
Do you think you are in the right place already that you can offer high enough purchase price to compete with the other buyers who are sure to give more? You should know your limit in order to limit your risk.
Inspection.
You have to know if the property which you have your eye on has passed the property inspection.
You might end up having some troubles if you purchased it not knowing if it passed the inspection or not.
If you found a property that you like and you decided that you will be the one to finance it, but then you found out that it is in a homeowner's association, you must work hard for the lender to approve the purchase.
Lenders are quite strict these days.
They look at association delinquency rates and pending litigation when agreeing to a loan on a property.
If you get lucky and your loan was accepted and approved by the lender, you have to make sure that the appraised value is higher than the purchase offer made by you and by your competitions.
Remember, if you acquire a property with a purchase price higher than the appraised value, you will have difficulties gaining returns.
There you go.
I hope you learned something useful in this article and may you find and purchase that one bank owned property for investment and prosper with it!
I decided to write an article with the mentioned title after having many people asked me about it.
In my understanding, for almost every state in the US, purchasing a foreclosure home is a sure thing.
Buyers are likely to jump on to properties which are acquired by the banks, because they are allegedly a great deal.
But the question is, are they? There are bank properties that are qualified to be a good investment, but unfortunately, there are also some which are not.
In order to get the best of bank-owned properties, there are considerations that must be put into action.
The first one is competition.
There is a great competition in real estate properties owned by the banks.
If you think you are ready to compete against other buyers, then you are ready for the second thing that needs consideration.
Purchase price.
There's a great competition like I said earlier and it drives up the purchase price.
Do you think you are in the right place already that you can offer high enough purchase price to compete with the other buyers who are sure to give more? You should know your limit in order to limit your risk.
Inspection.
You have to know if the property which you have your eye on has passed the property inspection.
You might end up having some troubles if you purchased it not knowing if it passed the inspection or not.
If you found a property that you like and you decided that you will be the one to finance it, but then you found out that it is in a homeowner's association, you must work hard for the lender to approve the purchase.
Lenders are quite strict these days.
They look at association delinquency rates and pending litigation when agreeing to a loan on a property.
If you get lucky and your loan was accepted and approved by the lender, you have to make sure that the appraised value is higher than the purchase offer made by you and by your competitions.
Remember, if you acquire a property with a purchase price higher than the appraised value, you will have difficulties gaining returns.
There you go.
I hope you learned something useful in this article and may you find and purchase that one bank owned property for investment and prosper with it!