The Houston Investment Property MarketIn Houston, pre-foreclosures and wholesale properties still produce profits for investment property investors in the know.
The Houston investment property market has changed a lot over the last few years. It used to be that you could buy just about any property you wanted and be able to quickly sell it and turn a profit on it or rent it out and watch it appreciate as it sat in your portfolio.
But the real estate investment market has become saturated, as there are simply too many typical foreclosures on the market. You used to have to scratch and claw your way to the front of the line to add typical foreclosures to your Houston investment property portfolio, but now you're best to leave them alone in most cases.
There are other types of properties that represent sound real estate investments. Pre-foreclosures and wholesale properties are still available in the marketplace, you just have to know where to look.
Pre-foreclosures in Houston
Pre-foreclosures are homes that are headed towards foreclosure but are not quite there yet. Homeowners in pre-foreclosure received a warning that their home is at risk, and the owner still has a chance to stop the house from going into foreclosure by paying what is owed.
If the owners are facing foreclosure and exhaust their hope of a getting a loan modification, their best bet is to find an investor such as yourself and sell their home to you at a discount for the outstanding loan balance or maybe less. This could be an ideal situation for both parties. To get more detailed introductory information on pre foreclosures, check out our article, The Basics of Foreclosure.
The best way to find pre-foreclosure deals is to contact the owner directly to see if they are interested in selling. Arranging a meeting is best, since it will give you an opportunity to evaluate the property. Click here for an article regarding how to calculate your offer price.
Since pre-foreclosures are not necessarily for sale, they can be difficult to find and contract. Sellers in these situations might be working to rectify the pre-foreclosure status. For sellers who are especially motivated to sell, pre-foreclosure listings can be a great option. However, the easiest way to access a steady stream of investment deals is finding wholesale properties.
Often times, purchasing a typical foreclosure at an auction does not happen at a significant discount. Foreclosure auctions have become competitive, with too many investors who are willing to pay more for properties. Another option is to seek out investor-ready foreclosures. These properties were not purchased at a foreclosure auction and now bank-owned.
MyhouseDeals helps you avoid the auctions by compiling a list of these investor-ready properties. You’ll be able to weed out the properties with no profit and only see the good deals for sale at a big discount. These properties are just waiting for investors to buy them.
Wholesale Properties in Houston
Another profitable type of Houston investment property is wholesale properties. These are properties owned by other investors who are looking to sell quickly in order to free up capital and be able to apply the funds to another purchase.
Wholesalers (investors who contract and sell wholesale deals) find wholesale properties by seeking out motivated sellers. Sellers become motivated to sell quickly for many reasons, including inheriting unwanted houses, falling behind on payments, and not being able to afford repairs to the home. Many investors begin their investing career by finding motivated sellers, selling the motivated sellers home to an investor and taking an assignment fee. This is a low risk, but profitable way to enter into real estate investing.
How to Get Started with Pre-Forclosure and Wholesale Properties
Not only can you view these deals with a free account, but if you have a wholesale property to sell, you can post it on our site for free.
By their very nature, both pre-foreclosures and wholesale properties are hard to find. These kinds of properties are not listed in the newspaper or listed with local real estate agents. In most cases you can only find them if you are in-the-know.
That's where MyHouseDeals comes in. We compile a list of the most profitable Houston investment properties that give our members an edge over the competition. Not only that, but we actually follow-up regularly on all the deals we have listed to see if the owners are willing to lower their price based on how long the home has been available. You won't find this kind of commitment to your success anywhere else.
By Doug Smith