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A few points to consider
Posted: Aug 27, 2014
Since the 2008 recession, the US economy is witnessing an uptrend in the number of foreclosures. This is a result of the dwindling economic conditions, unemployment and so forth.
As foreclosed properties are available at deeply discounted properties, real estate investors are allured by the price to value of these properties. Properties are now available at prices like never before. This is the right time for real estate investors to purchase foreclosed properties at discounted prices, fix it and then re-sell it at the prevailing market price. Atlanta Real Estate investing is indeed a means of quick money!
However, you need to understand a few things before stepping into Atlanta Investment real estate.This is the right time: In the words of Warren Buffett, "Be fearful when others are greedy and greedy when others are fearful."
The economy is facing a downtrend. Investments are risky, but foreclosure properties are now available at historically low prices. You can acquire a property at deeply discounted prices, fix it and re-sell it for a better deal.
The right candidate: Most foreclosed properties are sold for "cash on sale". For, bankers and lenders do not want to be further burdened with unpaid loans. Ideally, cash-rich investors are the right candidates for foreclosed property investment.
However, hard money loans, otherwise known as private loans or bridge money is available for investors who are not cash-rich.
Creative financing: Creative financing is yet another option for acquiring foreclosed properties. A group of people, family or friends can combine their savings and invest. Furthermore, you can also distribute the responsibilities amongst the group; thus, making the task easier.
Hard work pays: Foreclosed property investment seems like "quick money". But, Atlanta real estate investing is also fraught with risks. For instance: If you purchase a property that requires structural repairs, the rehab charges might eat into your expected profits. Or, you might end up with a vacant property for lack of demand in the neighborhood. Strong market knowledge is essential for success. Research and patience are the ideal ingredients for success in foreclosed property investment.
The ideal exit strategy: After rehabilitating the property, you can either flip it for a quick profit or hold it till the market turns better. Your investment goal coupled with thorough market knowledge will help you to boil down on the best exit strategy. For instance: While your goal may be to flip the property, the
neighborhood may not have a demand for the same. It may have a strong demand for rental properties. In such case, either you must look for another property that fulfills your ambitions or change your exit strategy.
Atlanta Investment real estate is indeed a promising venture for real estate investors. However, foreclosed property investment differs from the regular real estate investment. Therefore, a safer and smarter option would be to hold the hand of an experienced real estate wholesaler, who can guide you throughout the investment journey. In this way, you will stay away from the risks and cash in on the benefits, by using the knowledge and experience of the experts.
The author, Robert Wills is attached with New Western Acquisitions, a real estate firm who specialized in real estate investment properties,houses and real estate wholesaler.