The sparkling property investment!

Around 4 million homes in U.S. Neighborhood have entered foreclosure. Thanks to the plummeting economy since 2008, many borrowers have ended up with unpaid loans, leading to foreclosures. Banks and lenders’ primary objective is to recover their unpaid loans and not possess the property itself. Thus, banks and lenders sell Texas Investment Homes at deeply discounted prices; ranging anywhere from 10-50%.

Even in the dipping economy, investors saw gold in these foreclosed properties. Buy/fix sell or buy/fix/rent is their winning formula. Even if you are lured by Texas real estate investing, these are the steps you need to follow to be profitable on this path.

Hunt for a promising property: The first thing you need to do is to hunt for the right property. What is the right property? As foreclosed properties are sold "as-is", they demand repairs and rehab before transforming into a place called "home". Choose a property that will require as little work, quick and inexpensive repairs. While a broken window pane or painting can be easily taken care of; structural repairs like fixing a broken pipe or a dilapidated wall may be challenging. What’s more, such repairs might eat up into your expected profit margin.

Finance: Cash-rich investors can easily purchase such foreclosed properties; that often come with the "cash-on-sale" tag. Others may not be disheartened. Hard money loans, conventional loans and so forth are available for Texas real estate investing.

However, remember to arrange for the finance before choosing the property. There’s a huge rush for promising foreclosed properties. Without your finances in hand, you may lose out to another investor with ready finance.

Repairs and rehab: The next step in foreclosed property investment is to beautify the Texas Investment Homes. The repairs and rehab works is what transforms the property from a distressed one to a place called "home". Reliable and efficient laborers and contractors can add the required edge to the foreclosed property.

Exit strategy: Finally, it’s time to exit and get the returns. You can choose to sell the property or rent it out to a prospective tenant. While you can make a one-time profit by selling the property, you can enjoy a fixed monthly income through rental properties. Furthermore, you will also have a strong equity in hand. Based on the market demand and your investment goals, you can choose your exit strategy.

However, remember to work on the strategy from the beginning itself. For instance: If you wish to rent it out, you must ensure that the neighborhood in question has a market for rental properties. Furthermore, you must be ready to carry out the regular maintenance expenses and manage the tenants too. If you are interested in selling the property, then you need to undertake the repairs in tune with the buyer’s demands. For instance: If the neighborhood homes have TV cabinets, then the investor must build a TV cabinet.

For a novice investor, it may be difficult to understand all these steps and embark on a new path. A smart solution is to employ the services of experienced real estate wholesalers. For, the primary goal of these wholesalers is to provide knowledge, opportunities and resources to real estate investors interested in foreclosed property investment.

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.