| Doing the sums is stage two, gathering your data | | | | is a sensible way to work out your offer. That's |
| quickly and cost effectively is stage one and that's | | | | because once you have a top resale value you can |
| where online foreclosure listings come into their own. | | | | compare that to the total of all loans in default or the |
| The challenge to take full advantage of today's flood | | | | minimum bid or reserve of a property going to auction, |
| of foreclosures yet allow for the necessity to sell back | | | | to see if there is any equity. Equity means a level of |
| into a depressed market is not so great for the | | | | profit without speculation or excessive risk. |
| experienced investor who has a pre-tested method | | | | Use your same foreclosure listings provider with its |
| that he flexes according to the particular lead. | | | | home valuation tool, or access several free home |
| First up fundamentals mean knowing a lot about the | | | | valuation tools available on real estate sites to help you |
| immediate neighborhood, knowing the total of the liens | | | | assess true market value. From this figure, deduct your |
| recorded against the property, what stage of the | | | | buying costs, the discount you should expect to get |
| foreclosure process has been reached and when. All | | | | buying a foreclosure (a minimum of 15% is suggested |
| this data and more is available in online foreclosure | | | | by some Gurus) and you repair costs and arrive at |
| listings. Want to get an idea how much time you have | | | | your offer price. |
| to work up the costs of investing in a particular | | | | Just a reminder, this method assumes you are a home |
| foreclosure, then deciding what to pay? You need | | | | buyer looking to make the best of an opportunity to |
| access to a summary of the various state foreclosure | | | | buy a distressed price home and make your money |
| laws that apply (they vary considerably); again you will | | | | go further. It assumes you will settle for a while. |
| find these available online. Many reputable sites offer | | | | Otherwise you would have to factor in your resale |
| search features that give neighborhood demographics | | | | costs. Another word of caution, stay away from |
| that help you with estimating market value. | | | | houses needing structural repairs, or houses in streets |
| Remember that market value generally means a | | | | and districts with clusters of foreclosed bank owned |
| home in good shape for its age, no repairs needed. | | | | property that have been sitting for a while. Leave |
| Now, you may not be intending to buy, fix up and sell | | | | those leads to the experienced investor. Identify those |
| this foreclosure property that's in your sights, but it sure | | | | issues through smart use of foreclosure listings. |