Buying foreclosed properties is getting more popular and more profitable every day. There are dozens of foreclosed properties hitting the Nashville real estate market every day. These properties can be both gold mines and land mines. In this article, we'll go over several simple tips to help ensure that your first foreclosure purchase is a successful one.

Opt for a Low-Repair Property for Your First Deal

We've all heard about people who make thousands of dollars buying fixer foreclosures and fixing them. The reality is, however, that doing such a deal requires a high degree of expertise.

Do you know how to fix a broken roof? Can you estimate how much it would cost to replace an entire shed? Can you estimate how much the repairs will cost and compare it to your selling price in the end?

Although you can make a lot of money doing fixers in Nashville, TN; you can also make a lot of money just by buying foreclosed properties, doing minor cosmetic repairs and selling them again. For your first foreclosure deal, look for houses that don't require much work so you can get some experience under your belt.

Research the Markets Surrounding Nashville Real Estate Market

There are generally three reasons you'd buy a foreclosure in Nashville, TN: To rent out, to sell or to live in. If you're buying to repair and rent out or sell, then market research is absolutely essential.

If you're buying to rent, it's important to know what other properties in the Nashville, TN real estate area are renting for. It's also important to know what the vacancy rates are. Based on these numbers, you can accurately predict what your cashflow will be like.

If you're buying to sell, it's important to know what you can expect to sell your property for once your repairs are completed.

You should know these numbers before you make your purchase. Remember that with any real estate investment in Nashville, TN, the profit is made on the buy end, not the sell end. You must know how much your property is worth or how much you can rent it out for before you can make a profitable investment.

These tips will help you avoid some of the biggest pitfalls beginning investors tend to fall into with their first investments. Foreclosures can be a very lucrative business, but it also has its dangers.

There is a lot of free information available to you about buying, selling or investing in the Nashville, TN real estate market. For complete information about the Nashville, TN real estate market including current homes for sale, foreclosures, property values and more, please visit the most complete website online dedicated to everything Nashville, TN real estate at www.RealtyWorldNashville.net.

In case you missed the inauguration of our 44th president, President Barack Obama today, he made a statement that I think we as Americans need to definitely take to heart .  In his speech, he said “Choose hope over fear”.  That’s a powerful statement.  Fear is a feeling and that is all that it is – a feeling.  Fear cannot hurt you.  Fear cannot kill you.  Fear cannot stop you.  Fear emanates from the past.  It is just a feeling.  What we should do is trade that one feeling for another.  Hope will lift you up.  Hope can make you feel good.  Hope can increase other good feelings.  Hope gives you a reason to get up in the morning.  Hope is all about the future. 

This economy has been very challenging, and let me say especially challenging for those of us in the real estate industry.  Whether you are a Realtor, mortgage broker, builder, or banker – it has been hard.  It has not been fun.  It has been down right terrifying.  I personally have had fears of my own home being foreclosed on, fears of not being to take care of my children as well as I have in the past, and fears of my business failing through no fault of my own.  My list of fears go on and on, too numerous to post here. 

But today I am choosing hope over fear.  The economy has been rough and it has been hard.  And that’s exactly what it is now – a “has been”.  I am choosing to look forward with optimism and renewed energy.  I am choosing to embrace hope and banish fear from my vocabulary and my way of thinking.  What has happened is in the past and that is exactly where we should leave those feelings of fear.  It is time to look forward to the future with hope, no matter what political party you belong to or which way you voted.  It’s time for a new way of thinking.  Choose hope over fear.

For the month of November 2008, there were 33 residential single family home sales in Smyrna, TN. These sales prices ranged from $77,000 to $353,000. The average days on market were 75 days from listing to actual sale. The median home price was $151,689. There were only two recorded condominium sales for the same time period. Each unit sold for approximately $104,000 with an average of 72 days on market. All of these figures are based upon numbers provided by the Middle Tennessee Regional MLS. Of these 33 residential sales, nine of the homes were listed as foreclosures. One additional home was listed as a short-sale property.

There are currently 321 single family homes on the market in Smyrna, TN. At a sales rate of 33 sales per month, this equals to a nearly 10 months supply of homes. There are currently 33 condominiums on the market in Smyrna, TN. At a sales rate of 2 sales per month, this equals to a 16.5 months supply of condominiums.

This is clearly a buyer's market in Smyrna, TN.  If you are interested in purchasing a home in Smyrna or any of the surrounding middle TN neighborhoods, and you want to work with a local area expert, contact Rhonda@RealtyWorldNashville.com at your convenience.