Curtis Roddy, CEO @ RealTrac Info Systems, on Foreclosure Buys

Investing in real estate is usually a lifelong venture, with many benefits alongside the obvious risks. Many real estate investors choose to go the route of purchasing properties in the process of foreclosure for many different reasons, including flexible prices, optimal financing, and a variety of properties to choose from.

Under Market Value

Buying a foreclosed home usually means you’re buying a home under market value. The homes are usually priced at whatever amount is left on the homes mortgage, so the bank does not lose any money on the investment. They are also eager to gain that lost money back, so the price can often be negotiated if not being sold through an auction. The lower prices are extremely enticing for real estate investors, whose ultimate goal is to make a profit.

Financing

Since the sale of foreclosed properties is facilitated by the bank who originally provided a mortgage loan, that bank is much more likely to work with you in terms of getting better financing. Banks are usually looking to offload foreclosed homes as quickly as they can, making them a prime candidate for real estate investors who want more flexibility in negotiating their financing. Investors with good credit are ideal candidates for banks to loan money to, so it makes perfect sense for this to be capitalized on.

Options

When you think about foreclosed homes, usually the first thing that comes to mind is something negative like a beat up home that’s falling apart in a lower income neighborhood. While there are plenty of these to choose from, there are also plenty of other options on the market. Foreclosed homes come in all shapes and sizes, making them ideal for real estate investors who are looking to diversify their property portfolios.
While purchasing a foreclosed home does present some risk due to not always being able to fully inspect these homes before purchasing, the pro’s highly outweigh the con’s. Buying a foreclosed home can help broaden your real estate horizons, and help to drive profit from your portfolio.

Originally published at curtisroddy.co on November 5, 2018.