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