This is an excellent year to begin investing in real estate, if you have not done so thus far. It is sad but true there are many properties being foreclosed through the United States that a keen investor eye can receive a substantial amount of equity and require little or no repairs.
As a realtor, in recent months, I have many clients qualifying for properties in the low hundred price range. In looking at the property on the market, I would say that 80% of the properties being listed are foreclosures or properties that are being sold under a short sale.
Many properties are being listed below tax value, market value and the mortgage amount that was foreclosed on. Most of my clients are coming in to properties that have $20,00-50,000 equity upon closing and are ready to move in.
Owner occupant clients are now enjoying the benefits of moving into a home that has more value than they paid for it. Well, Investors can buy properties with equity and receive a return on their investment.
Now the problem that most investor face in trying to refinance in a short period. Most lenders wants the loan to season (mature) a short while before giving you cashout. They want to see the person ability to repay the mortgage in a timely manner. The investor could get a hard money loan , make a few improvements and refinance to a better rate.
Depending on the time frame, you might not get that reasonable interest rate most investors look for, but who cares when you main objective should be tax write-off and the interest rate is exactly that. Investors can either turn around and resell or rent out the property at a profit to receive monthly income. So a key to investing in real estate is: do your homework!
Deals are out there, there is money to be made. But you can get caught up if you do not study key elements. Such as the price your are paying for the property, value of similar properties within a 5 mile radius (comps), amount of improvements needed on the property, and identifying your short or long term goal for keeping the property. So get to making money-real estate is still a secure investment!