The current real estate environment is ripe with potential issues that must be taken into consideration. Local real estate prices, mortgage worthiness and local economic and employment conditions are only some of the variables that an investor in foreclosures must take into account. If someone is just beginning to invest in foreclosures to build their real estate portfolio, it is important to understand that decisions made now can and will affect financial flexibility later.
Before Buying A Foreclosure…
Questions that buyers must ask themselves (and answer) are:
- What are your short-term real estate investing goals (i.e., how many foreclosure homes the first year)?
- What are your revenue generation goals for buying foreclosure properties? Breaking even is not a goal that is called a mistake and should not be repeated.
- Am I willing to be a landlord? If no, collect stamps or buy lotto tickets.
- What is my credit like? If you need to improve your credit, start now!
- How much cash am I working with? If none, study Hard money
- What are long-term real estate investing goals? Don’t fire without aiming.
Be sure to ask yourself these questions before beginning your real estate investing and foreclosure portfolio. If you already have investment properties, you should still ask yourself these questions. Write your answers down and refer to this list before making any decisions with regard to purchasing your next foreclosure home. Do not be afraid to reassess your goals to be sure that your current actions are still on track with your long-term real estate investing goals.
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