As an investment, real estate is one of the best you can make. It is possible to generate massive profits from this investment, but there’s no hiding that properties are expensive. So, whether you’re buying a commercial property or a residential one, it’s crucial to try and find the best bargains around. After all, the less money you spend on a property, the more money you can make from it.
So, how do you find real estate investment bargains? Well, two excellent tricks could help you find some highly cheap properties to invest in:
Look for foreclosed homes
A foreclosure is a home that a lender has seized. The owners couldn’t keep up with their repayments, so the lender took control of the house. As a result, it is possible to purchase a foreclosed home for a lot less than its actual market value.
Effectively, you have three main options here:
- Buy the house through a short sale
- Buy the house at an auction
- Buy the home directly from the lender
A short sale happens when the homeowner wants to sell the home for less than what they owe on the mortgage. Technically, this home isn’t a foreclosure yet. You talk to the homeowner and their realtor about this, but the lender must also approve the offer.
Buying foreclosed homes at auctions is perhaps the most common tactic. Loads of banks and lenders list these properties for sale as they want to get rid of them and reclaim as much money as possible. You have to pay in cash here, so it’s only a viable option if you have the cash with you. As it’s an auction, you can snag an insane deal here and bypass the need to pay for any estate agent fees.
Finally, you can contact lenders to see if they are willing to sell foreclosed homes. This can be challenging, and you will need a real estate agent to help you with this.
You can find a great real estate bargain through foreclosed homes in any of these cases.
Look for properties with sketchy backgrounds.
Every city or town has at least one house that people claim is haunted. Or, there’s a property where everyone knows something dodgy happened in it – perhaps a crime was committed there. These homes have sketchy backgrounds, meaning people are afraid to buy them. As a result, excellent properties are listed for years without any offers, meaning the owners are desperate. This is a fantastic opportunity for you to make money and snag a bargain. Even if something terrible happened there, you can pay for crime scene cleanup and renovate the property as much as you like. Sometimes, you can knock the whole thing down and build it up.
You’ve got some prime real estate here at an affordable price because other buyers are too afraid to go near it. If you get a bargain deal, you have more than enough potential to turn the property around and make it profitable.
Now you have at least two ways to find real estate investment bargains that will set you up for an excellent return on income.