There are many foreclosed homes for sale that can prove to be great long term investments. Foreclosures are at an epidemic, as anyone who turns on the evening news knows. The real estate investor who knows how to find the best deals will be able to turn his investment into positive cash flow.

Real property investors create positive cash flow with foreclosures by flipping, renting, wholesaling, and lease optioning. Flipping a house refers to buying low and selling high, and can still be accomplished even though the market is experiencing challenges. Buying a foreclosure that needs limited rehab work can help increase resale profit because the investor will not have to invest heavily to make the house ready to retail.

Wholesaling a foreclosure is when one investor buys a foreclosure and then sells it to another investor for a profit, albeit a smaller profit than if he would sell the house retail. The advantage that wholesaling has over retailing is that the investor does not have to pay for rehab costs. He buys the foreclosed house and sells the house to another investor, as is, who will then rehab the property and either retail or rent the house.

The investor who buys a foreclosure with the intent of renting the house should buy a house in a family oriented neighborhood. It is easy to rent a house if the property is located near schools, shopping malls, and laundry mats. On the other hand, a house located in a high crime area where unemployed people walk the sidewalks during the day will be difficult to rent.

This is a good time to offer renters a lease option contract because many people, who otherwise would like to buy a house, do not have the down payment. The lease option is a simple contract that gives the renter the option to purchase the house at a later date. This gives the renter an incentive to keep paying rent on time and helps build a business relationship between renter and landlord.

Foreclosures are also known as bank owned properties because the land has been repossessed by the bank, the original note holder. Banks are eager to sell their repossessed properties because banks are in the money lending business not the real estate sales business. Banks normally do not deal directly with real estate investors but instead assign their properties to a real estate broker.

Foreclosures can be purchased at land auctions but one should sit through a few auctions before placing bids. Before placing a bid visit the houses that will be up for auction and look at the interior and exterior of the house before bidding. Have a fixed ceiling amount when bidding and keep emotions out of the bidding.

There are many foreclosed homes for sale and the wise real estate investor can create positive cash flow by investing in bank owned land. Real estate investors make profits through retailing or wholesaling foreclosed land. This is a great time to invest in real estate.

Access to a top Milton real estate agent and commercial specialists who will make your search for Milton homes for sale experience a great one. Century 21 273 Kent Street West, Lindsay, ON K9V 2Z8, Canada 705-324-2552

Access to a top http://www.century21.ca/futurerealty Milton real estate agent and commercial specialists who will make your search for http://www.century21.ca/futurerealty Milton homes for sale experience a great one. Century 21 273 Kent Street West, Lindsay, ON K9V 2Z8, Canada 705-324-2552

Author Bio: Access to a top Milton real estate agent and commercial specialists who will make your search for Milton homes for sale experience a great one. Century 21 273 Kent Street West, Lindsay, ON K9V 2Z8, Canada 705-324-2552

Category: Real Estate
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