We've been covering the hot topic of foreclosures a lot lately, because the number of homeowners defaulting on their home loans has been rising at an unprecedented rate across America. Today I want to look at the topic from a different angle.
While there are many homeowners today who are struggling to meet their mortgage payments, there are just as many would-be investors who are eager to capitalize on the situation by investing in foreclosures and - they hope - selling them for a hefty profit.
This may seem easy on the surface, given the rising number of foreclosed properties; however, potential investors should take the time to understand what they are getting into before heading to an auction or purchasing any bank-owned property.
This article from RealEstateJournal.com covers some of the caveats to investing in foreclosures. If you are investing in a property with the hopes of "flipping" it for a quick re-sale, you should consult an experienced Realtor first to get a clear picture of the current real estate market in your area. Homes may not be selling quickly in your area, which means you could end up with a property that continues to sit on the market while you keep making payments on it. Also, most homes purchased at auction cannot be inspected first, so your new property may come with major structural damage, hidden liens, or utility bills that need to be paid. It is up to the potential buyer to weigh out how much you are willing to invest in improvements over and above the actual price of the property.
If you are thinking of investing in Ludlow VT real estate, please email or call me at 802-353-1983. You can also visit ISellVermontRealEstate.com or begin searching the MLS here. I would be happy to help you invest in your future in Ludlow VT.
1 Comments on Buyers Beware When Investing in Foreclosures in Ludlow VT
Very good advice, Irene. I've seen some investors experience unexpected repairs or a larger scope of repair once they get into a project. That takes more of their 'cushion' out of the project. In some cases, they've held house quite a while before they could sell. Others had to value add items, even a new 2-car garage, in one case! TV shows make it look easy. Like most things in life, there's more to the story.
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Very good advice, Irene. I've seen some investors experience unexpected repairs or a larger scope of repair once they get into a project. That takes more of their 'cushion' out of the project. In some cases, they've held house quite a while before they could sell. Others had to value add items, even a new 2-car garage, in one case! TV shows make it look easy. Like most things in life, there's more to the story.