If you have ever found yourself wishing there were more ways to making money than being stuck working for it in the daily grind of a 9 to 5 job, then your wishes may have been answered. Investing in real estate properties can provide a nice sum of money if done correctly. While investing may be easy, finding the right property in Georgia to invest in can be a little tricky, unless you know where to look.
There are many homes right now that have become repossessed or are in the process of being foreclosed upon. These properties are the ones you need to be on a lookout for as possible additions to your investment portfolio. You can decide to rent them out or flip them. The nice thing about these distressed properties is you can buy them either with little or no money down and at a fraction of what they are worth.
Banks are not in the real estate business. They are in the business of lending money and earning from the interest. When they have non-performing loans on the books, these loans do not make the financial institution look good. They may look like they have problems with their judgment and investors will not want to invest in the lender’s portfolio. This, in turn, costs the lender money. By clearing the bad loans off the books, it puts the lender in better standing with their investors. This is where you can clean up.
Lenders are willing to look at any offer that is made on a property. They will also say no to ones which are just too low for the value of the home. You need to do your homework before you make an offer and profits can be achieved by doing the following:
Find out how long a property has been in foreclosure or vacant. This information will give you a good indication as to how much the lender will negotiate when it comes to the property. A new listing will be harder to obtain a low bid on than an older one. Should you find one that has been on the market for a year or more, you can usually set your own price, within reason.
Search the government repossession lists. This is one of the best places to start looking for the right property. You can find some of these homes with prices of less than $10,000. The key to negotiating a deal with the HUD office is to be patient. You can offer as little as $500 for a property which has been listed as a foreclosure. Many of the properties that are for sale under $10,000 will actually sell for far less. The nice thing is most of these homes are valued at over $30,000.
Resell the property either as a rent to own or land contract. Finding the right property for this is not very hard. It is about finding the right buyer you could have problems with. There are so many people who have poor credit or have not been on the job long enough to establish a good credit rating. These are the ones you will most likely be dealing with if you choose to lease option or land contract the house. Finding the right property for these people is simply a matter of asking.
Form a buyer’s list. This is a list of people who are looking for a specific property to buy. You will know what they are looking for and have it all listed. This will ensure when you come across the right property you know who to contact to sell the home too. It is a win, win situation. You can sometimes create a deal with no money out of pocket when you have a buyers list. It is a simple matter of negotiating.
Set up a deal with the seller. The buyer would be able to tour the home. If the buyer is willing to purchase, he or she would come up with the money to purchase the property. You would be acting as the middleman. For a percentage of the sale or an agreed upon price, the deal would be sealed.
That is all there is to find the right investment property. Follow these steps and you too will be making the profits you have always dreamed of.