On April 14, 2008, ABC News reported that 1 of every 428 houses in Ohio is going through some foreclosure process. That’s just indicative of the mortgage crisis that is currently gripping the nation by the throat. Profit from other people’s misery by learning preforeclosure secrets in real estate investing. You can make the seller’s misery a little less from buying a preforeclosure property than a foreclosure property. A preforeclosure does not say on a person’s credit record as long as a foreclosure does.
Location, Location, Location
In real estate investing, you will drive yourself insane looking at properties in random areas of the country or state. You need to select your location first and then see what properties are available. It’s no good buying a beautiful mini-mansion in Ohio if there haven’t been any significant sales in that town for ten years. Once you get your location chosen, then you can focus on the properties.
Many in real estate investing prefer to work with preforeclosure properties than ones already in foreclosure. You not only feel good helping the homeowner out a little bit, but you can often save as much as 40 of the house’s market value.
Don’t be surprised if the homeowner doesn’t answer the phone or the doorbell. They may be scared that you are a bill collector. They may also feel shame and confusion. Be patient. Slip a note under their doors if you have to, just to let them know that you are not a bill collector or their lenders.
Talk To Your Accountant
In order to save more money, those in real estate investing may be entitled to a large rebate for every foreclosure or preforeclosure piece of property they buy. This is due to the Foreclosure Prevention Act of 2008. However, since tax laws seem to change by the minute, don’t count on the rebates. If they happen – great, but do not gamble everything on getting a whopping great rebate check-in 2008.