Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Start Your Real Estate Investment Portfolio in Florida by Purchasing a Foreclosure

By William Hauselberg Subscribe to RSS | February 24th 2012 | Views:
loading
 
  



Purchasing a home to renovate and resell is a great way to turn a profit and add to your real estate portfolio. As you begin your journey in real estate investment Florida is an excellent location, and one of the best ways to get started is to consider purchasing a home in foreclosure.

Real Estate Owned Property

There are a few different avenues you can take to acquire a Florida foreclosure investment property. Arguably the best way to begin your foreclosure investment is to purchase the property from the lender itself after the foreclosure sale. This type of property is known as an REO (real estate-owned ), Repo (repossessed property), lender owned or even corporation owned properties. The process of purchasing an REO is still quite similar to purchasing a regular home, but with a few differences. For example, when purchasing an REO, you will likely not receive a seller’s disclosure statement, so you may not be privy to potential damage or other flaws within the home.

Pre Foreclosure Properties

The next option is to purchase a home in pre-foreclosure. This means the home is in the very early stages of being repossessed by the bank. At this point in the real estate game, the current homeowner may be able to sell the home before it goes to auction and use the net sale proceeds to cover outstanding mortgage debt. Because sellers want to be free of their mortgage debt and avoid repossession and auctioning of their home, this can prove to be advantageous for buyers looking to purchase a home at a low price point for real estate investment purposes. There are, of course, risks involved when purchasing a pre-foreclosure. If the seller is desperate to get rid of their home, they may neglect to inform you of problems or damage in the home. As a real estate investor, the choice is yours to make.

On the Auction Block

The final option for purchasing a home in foreclosure is at the auction itself. This method presents the most risk, as you will have no real estate agent, no escrow, no inspections, and so on. You are essentially buying the property blind without knowing what you are getting. You are also often expected to pay in cash. You are, however, going to find homes for extremely low prices at an auction, which can mean a big investment return in the end.

As with all foreclosure purchases, it often comes down to a matter of risk versus reward, and for many who are building their real estate portfolio, the greater the risk, the greater the reward.

William Hauselberg - About Author:
The author has an immense knowledge on real estate investment Florida. Know more about Florida foreclosure investment property related info in his website.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/start-your-real-estate-investment-portfolio-in-florida-by-purchasing-a-foreclosure.htm

Related Finance Articles Subscribe to RSS

Tricks for investment with regards to India
Published by Isol on August 13th 2012 | Finance



The American Indian Stock as well as Investment in today's years, shows the final boom...
 
Save your property through Landlords insurance
Published by Ashish Pandey on February 3rd 2012 | Finance
Having landlords insurance can be very advantageous for all the landlords and can protect the proper...
 
HOA management- Capable providers for financial as well as property management
Published by Ema Sis on January 12th 2012 | Finance
HOA management companies shall be actual asset for communal administration amenities. They undertake...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...