“One man’s loss is another man’s gain.” This Latin proverb has been around for a very long time, and with reason. Despite the compassion for another person’s difficulties, a savvy investor can turn those difficulties into a waterfall of financial chances for his or herself.

One of the top portfolio builders in the past decade has been foreclosure investing. The era of easy credit standards has finally come full circle, which means the adjustable-rate, subprime mortgages handed out so readily in the past few years will be shifting up to a higher interest rate. According to Fitch Ratings, an investment analysis firm, nearly one fifth of all home loans are suprime, leaving a bleak future outlook for the number of people tenaciously holding on to their properties in the Columbia South Carolina real estate market. Investors in Columbia South CarolinaWill find that they can fill a hole in the real estate market unseen at this level ever before.

Out of every option you look at in the game of real estate, foreclosures are the best way to go. With their only requirement being that the amount the house sells for covers the amount owed, and it be paid in cash,banks are not set up to be landlords, so they often auction off the houses as quickly as possible. Generally meaning, those investors with the means to pay outright for the house at auction, will be able to save a lot of money. This makes the field very competitive because most investors prefer giving less money to a bank than buying a property outright.

Moving prior to foreclosure is one feasible alternative to battling with the hundreds of foreclosure investors in your area. This also provides an opportunity to get a conventional loan for the property purchase rather than having to have cash upfront, giving the more casual investor a chance at a good deal without having to pony up a lot in the beginning of the process. A pre-foreclosure purchase takes place before the homeowner completely defaults on their loan and you deal directly with the home owner. There is much less competition for this kind of opportunity as most investors will go for the better bargain of buying at auction. Which can be identified by looking for titles with a “lis pendens” notice filed by the lender,the county clerk’s office in your area keeps a list of pre-foreclosures.

Do not contact a potential seller until your own financing is set and ready to go. Even a few days can mean losing an opportunity to the auction houses,and these types of real estate deals do not have the luxury of time. Also, use the experience in foreclosure sales that a real estate buyer's agent will have, you will gain security and know that your interests are important. Few things beat the excitement of the foreclosure auctions, especially if you walk in with tens of thousands of dollars in cash to buy the property you’re after. As exciting as that is, however, there are safer ways to secure an investment property at a much lower than market price without having to duke it out with professional investors via the pre-foreclosure sale. As with any type of real estate investment, foreclosure investing has many different options, and each should be carefully measured before moving forward with the sale, to find the best fit for your needs.

Comments

Printer version

 Tags: Columbia South Carolina Real Estate, Columbia South Carolina Homes, Columbia SC Real Estate, Columbia SC Homes, Adrian La Fosse

Article's Author

Adrian La fosse
Asset Realty, Inc.
Columbia, SC

Contact Adrian La fosse