The Truth About Buying REO Properties the Bank Will Never Tell You (And What You REALLY Need to Know About Buying Investment Properties)
Real estate is a fast growing field of opportunity, particularly in a cosmopolitan, fast paced city like Philadelphia. The secret to success in real estate is to buy low and sell high, but where can you find properties at a low price with the maximum potential for resale profit?
An investor will likely find out that the big money is not made at the foreclosure auction after their first visit. They instead direct their attentions to purchasing REO, or real estate owned properties. These properties are ones the bank was unable to successfully sell at auction and have been placed back on the open market. At this point the bank is anxious to wash its hands of them and is willing to reduce the price. This sounds good. However, this is not the opportunity it appears to be. By this time the property has cost the bank a great deal of money, both in initial investments and foreclosure and auction fees. The bank's sole motivation is to recoup as many of these expenses as possible while at the same time not incurring any more. What this translates into is that while the property will be available for purchase at a lower price than originally named, the accumulated fees are still driving the prices higher than the actual cost of the house.
There is a better way! For years real estate dealers have become wealthy from their investments because they know the secrets of purchasing property in the Philadelphia area for the lowest price possible. There are two main methods for buying bargain property with a minimum investment but a maximum profit potential. You can buy wholesale from a private dealer or take advantage of a motivated seller lead. Both of these are privately listed properties, which equals less competition, lower purchase prices and greater profit margins.
Wholesale properties are ones that have been purchased by a wholesaler for the express purpose of reselling them to an investor. Wholesalers are real estate professionals who have devoted themselves to finding properties at rock bottom prices that possess a much higher possible resell value. They then contract these properties, turn around and resell them to a professional investor for a small profit. The investor then is able to rehab the home and resell it for a much higher price than they paid for it.
Motivated seller leads are properties that are on their way to the foreclosure auction if the owners are unable to sell them prior to that time. These owners are usually in a great hurry to sell, and therefore are likely to make the house available for no greater cost than is necessary to avoid foreclosure. This means no fees, and since you are dealing directly with the owner there is no one else raising the price in an attempt to make a profit.
Wholesale properties and motivated seller leads have been the well kept secrets of success of the professionals for ages. Now is the time for all young and seasoned investors alike (this means you!) to take advantage of the secrets of the pros, forget all of their prior beliefs regarding property purchase and begin making a great living in real estate. Come join us at MyHouseDeals.com.
As a member of MyHouseDeals.com, we'll keep you updated about new properties in your area daily, and each new house added to the list comes with full descriptions, value and repair estimates, and full contact information for the seller. That's right. We do all of the leg work for you, so all you have to do is focus on establishing and expanding your business. Become a member for free today by clicking the button below!