The first step in the fix and flip process is to find that golden fixer-upper in a desirable neighborhood that will resell in no time. If you find a property with an extremely lucrative after-repair value, you can even qualify for 100% financing from a few hard money lenders (*cough* Do Hard Money *cough*). 100% financing means the hard money lender will cover 100% of the property purchase price, rehab costs and even other closing costs and fees and you won’t have to bring a dime of cash-to-close to the deal. However, finding a property is often a step where people have the most difficulty.
Many either search in undesirable real estate areas or severely limit themselves by sticking solely to the MLS as their finding resource. However, there is a much better way to find fantastic properties to fix up at lower selling prices, thus increasing your overall profit. This resource is top secret and will cut your time and efforts finding properties in half. This blog post will self-destruct after you read it to ensure that competition for these properties remains low and your opportunities high. Ready for the secret?…
Here’s the secret resource: Foreclosures
Why Search for Properties in Bank Foreclosures?
There are several advantages when it comes to searching foreclosure listings for good deals:
They involve less risk and less competition.
Foreclosures are usually clear of any liens which may have been recorded against the property.
These properties seek to be sold quickly, which speeds up the overall process of securing the property. This is good news for you, as the terms of hard money loans are short and it will get the resale check into your hands sooner rather than later.
Why Search in the Foreclosure Listings Now?
Do you remember the phrase, “strike while the iron’s hot?”
According to ATTOM Data Solutions, foreclosure activity in the U.S. increased by nearly 27% from September 2016 to October 2016. This was the largest month-to-month increase in foreclosures the nation has seen since August 2007. One in every 1,258 residential housing units had a foreclosure filing in October. With the greater number of foreclosures occurring recently, there’s a greater number of opportunities to find a great property for a fraction of its market cost.
Where Can I Find Foreclosure Listings?
Some of the best foreclosure listings are found on RealtyTrac, Foreclosure.com and Remax.com. Keep in mind that every foreclosure is different (some come with major discounts, others do not), so it’s very important to do your homework beforehand. Ask the following questions when you come across a foreclosure listing that looks promising:
How long has it been sitting on the market?
How is the quality of the area around the property?
How much rehab work/costs would be involved to make this property desirable?
Remember, searching foreclosure listings is only one of many other surefire property-finding methods our research has uncovered. If you’re looking for other ways to find lucrative properties to fix up and resell, give us a call at 801-948-9774 or click on this link to schedule an appointment with us. We look forward to chatting with you and helping you take the first steps toward financial freedom through real estate investments.