Buying at the public foreclosure auction is not for the inexperienced buyer or investor because it often requires significant amounts of cash and does not typically allow for a full inspection of a property prior to bidding. However, lenders are becoming more willing to discount opening bids at public foreclosure auctions, giving knowledgeable and careful investors an opportunity to buy far below market without the red tape of short sales or the bureaucracy of bank-owned sales.
4. BUY LOW AND RENT
With prices at 2003-or-lower levels, bargain-seeking buyers might want to consider buying low now and renting until the housing market recovers. Rental rates in many areas comfortably provide a monthly cash flow after mortgage, taxes, insurance and other expenses that come with owning investment property. Buy-and-hold investors can hold for the long- term or just until the market recovers and home prices start to appreciate again. Many economists predict that the national median price for a single-family residential home will dip another five to 10 percent before finally bottoming out by years end or early 2011.
5. BUY LOW AND FLIP
If becoming a landlord is not appealing to you, you might want to consider buying and flipping foreclosures. That’s what Jon Mirmelli, a Phoenix real estate agent and investor does. He buys foreclosed homes for cash at the Maricopa County courthouse and then quickly sells them for a profit to homebuyers and investors. Power-flippers are also making a comeback in Las Vegas, Nev., Cape Coral, Fla., Miami, Fla. and Los Angeles, Calif., where prices are at historic lows.
Flippers in 2010 will also benefit from a one-year reprieve in a Federal Housing Administration rule that is designed to discourage property flipping. This rule, which prohibited the FHA from insuring a loan for a home that has been owned by the seller for less than 90 days, was temporarily removed starting Feb. 1.
(The content of this message is taken from RealtyTrac Agent Advocate; Volume 6 Issue 6.)
Randolph County has its share of both short sales and REO properties (foreclosures) available right now. If you are interested in finding out more about properties for sale in the Asheboro and Randolph County areas, call or email me today.
I make offers for you on HUD properties for sale in NC….
For tactics 1 & 2, click here: 10 Real Estate Investing Tactics (1 & 2 of 10)
Waynette Hoover Araj
RE/MAX Central Realty
231 S. Fayetteville St
Asheboro, NC 27203