3 Smart Moves for Investing and Buying a Foreclosure

After the US housing market collapse, nearly 5 million homes have gone through foreclosure in the half decade. According to the National Association reports, approximately 14%of home sales were foreclosures in the late 2013.

Foreign investors are looking at US foreclosed homes as great investment opportunities to diversify and strengthen their real estate investment portfolio. The US has always been the hottest and pricey real estate market. And it has never been easy to buy a piece of land on the US soil as it is now.

Where foreclosed home buying in the US looks might attractive, it is important to understand that not every cheap property on US turf is of great value. So, foreign investors really need to evaluate the value of the property before investing in it.

If you are also thinking of property investment in the US and wish to purchase a foreclosed home at low selling price but of high value, then here are 3 smart moves to ensure you buy the right foreclosure successfully:

Smart Move 1-Foreclosure Sightseeing is Important

Usually you can’t enter a foreclosed home to assess its condition before you bid so evaluating the interior of the home is often difficult. It is believed that an owner who couldn’t keep up with mortgage payments most likely didn’t keep up with normal maintenance on the home either. So, investing in a property properly unseen is risky.

At best, what you can do is analyze the exterior and or chat up a neighbor about the property’s recent history. You might get some scoop from the neighbors. If you are convinced by what you see from outside and what the neighbors have to say, then only consider investing. If not, then you might want to avoid the risk.

Smart Move 2- Hire a Professional

If you are home buying for the first time, then it is advisable to hire a professional. A professional real estate company can provide you quality guidance and help you seal a sweet deal. Also, there are some companies that offer joint venture programs that ensure your investment capital on property will be covered. Nothing beats this. It cushions the investor from loss and makes property investment less risky.

Smart Move 3- Line up Your Financing In Advance

Remember you are not the only one bidding for the home on auction. It is a war where you are up against numerous investors; therefore you need to make sure that you have your financing lined up. Cash buyers usually have an upper hand in bidding war but this doesn’t you can’t bid and win if you are purchasing through mortgage financing. However, to come across as a serious buyer, you need to make sure you have mortgage approval with you. This will increase your chances of getting your offer accepted.