Investing in Foreclosed Homes
About investing in foreclosed homes
Buying foreclosed homes to improve upon has
been a hot trend in real estate investment. There are now
thousands of books and even websites dedicated to finding such
foreclosed homes for you to buy at foreclosure auctions or
Trustee's sales.
Unfortunately, the mother load of auctions,
the US Government foreclosed homes auctions, charges a
membership fee for you to even attend. Of course you can see
what you'd be bidding on ahead of time on various websites.
Since only few people ever attend and
even fewer actually buy these foreclosed homes, not all are
even sold, and they do start at ridiculously low prices.
Naturally this inspires all three types of real estate
investors to buy low and fix up. Investing in foreclosure homes
is most popularly with type 1 real estate investors, of
course.
However, as time marches on, this hot trend
is losing its advantage almost rapidly. Nowadays, it might not
even be worth your time to attend a foreclosure
auction, unless you've got a large bankroll and can buy in
bulk. Eventually, only the type 3 real estate investors will be
in attendance.
Real estate investing vs other types of
investing
The Verdict? real estate investing is for
those who want more hands-on control than they have with
stocks, much more return on their dollar than they would with
bonds, and have more time to spend on their investment than
both of them. Chances are, one real estate investing type above
is much better suited for you than the other two types, however
you would be negligent not to weigh it against other
investments such as stock funds when considering your ideal
investment.
In any type of investing, no matter if it's
real estate investing, investing in the stock market, or
investing tax free, people are effectively looking for three
main things:
- Income from the investments
- Tax deductions
- Growth or capital appreciation
What makes real estate investing special, at
least the first two types, is that you can have all of the
three benefits above without having to invest a lot of money to
get started. Add that to the added control you have over your
own property, and it's easy to see why this is still the
world's most popular investment.
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