 |
Tags: finance, investing, foreclosed homes
 Houses everywhere are turning into foreclosed property and houses are cheap and going cheaper. You don't need me to tell you that this is potentially a very good investment, but then that's just how it looks from afar. The general conception is that foreclosed homes for sale aren't in very good shape, but there are a few places out there that only need a bit of work before they can turn into something very profitable.
In light of this, I think it should be fair to share a few tips with would-be investors planning to take advantage of the low housing costs. These places might be a steal, but let's make sure you have the proper tools on you so you know that you're getting you money's worth when you want to buy foreclosed homes.
advertisement
When you're off to inspect one of the foreclosures take a notebook, a camera, a flashlight, a marble, a plug tester, a knife, a calculator and a pair of binoculars. Before going talk to the seller and ask about the house. If you know anyone in the area you can ask them about it, but the seller's information should be good enough.
They're entitled to answer your questions so ask for details. Now you're ready to inspect the property. When you're looking at foreclosed homes, emphasis on the plural, you better take a camera to document your trip because you may need to take several trips and taking pictures of the place now will save you the time of coming a second time to inspect the property.
Another plus is that you can compare pictures of your prospects. Document everything you find even if they are simple notes. Put them down on that notebook you brought with you. If you have a recording device you can use that, but I honestly believe that taking pictures is better than recording a video since you can focus on what you want to be recorded.
Some of the foreclosed homes you inspect probably won't have any power so carrying a flashlight with you is prudent. You can do an inspection of basements, attics or dark corners you can venture to. Remember the last part or you’ll drop your flashlight and break it. If you're not running around like some nut, you should get to work with that knife and marble.
The knife is supposed to check for wood rot on the walls or wherever there's wood. The marble is used to determine if the floor is level. Sloped floors could mean that there's trouble with the foundation that could prove to be very expensive to fix later. You can put the plug tester to action when there's still power.
This'll tell if the outlets are working and if they're wired properly. When you're done with the interior, step outside and take a look at the roof. Take a walk and check the roof out with those binoculars you brought along. There are a few things that you'll only see when you take a look at it from a distance; apparently, this goes for roofs too and all the foreclosed homes you visit.
When you've got all your notes, review your finds. Calculate the amount of cash you need to spend on repairs and what you’re paying. They’re foreclosed homes, they’re supposed to be cheap. After you've done a run of foreclosed homes and picked one or two you want to buy, it's always best to hire an inspector.
You’re no expert and need to protect yourself. These kinds of homes are a big risk because you might be spending a lot on repairs and it might not be worth the investment. Don't be afraid to walk away even if you already put in your earnest money deposit, there are other foreclosed homes out there.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
Share this article
You may reprint this article in its entirety on your web site, newsletter or ezine, providing you leave the About the author sections intact. You may not alter the contents.
|
|
