There are many different things that you can put your money into when you want to make more money. Investing is very common, and can be a great way to save for retirement or to pay for a college tuition. Whatever it is that you want to do, you can have your money making more money for you. This is always something that is a little risky, but there is plenty of money out there to be made. Some like to put their money into real estate investing, and if they know what they are doing, they can make a lot of money doing so.
There are moments when you can make a quick buck with real estate. But with the current economic crisis that is unlikely to happen. The majority of the people invest for the long run. And a few like to make a combination. You can buy distressed properties and then completely fix them, if you are knowledgeable in the areas of electricity, plumbing, carpentry, painting, etc. Otherwise you have to hire subcontractors. Who can eat up a lot of your potential profit. When you do everything by yourself it is possible to sell a fixed property for two to three times the price you paid for. And then the next step would be to reinvest that money in newly bought distressed houses and double your money.
If you want to get into real estate investing for the long haul, you can buy up properties to rent out to others. You run a bit more risk this way, as you have to worry about having tenants in your properties on a fairly regular basis, and you do have property depreciation to think about. You also have regular maintenance costs. However, if you have the right amount of properties, this type of real estate investing can really pay off in the long run. Some find that if they have enough properties, they can often retire early with a good amount from rentals on top of other types of investments.
Whatever way you decide to go with real estate investing, you do have to have some money to get started. You can try to buy properties with loans, but that does get complicated. However, it is doable. Either way, you are risking your own money. While buying and selling homes quickly might not work during some periods of time, renting for income is something that is always a good idea. No matter what the housing market is doing, there are always people who need a place to live.
That brings us to the option of buying a foreclosure. In many cases this can be a very lucrative business. When being at the right place at the right moment, you can buy at half price. The number of foreclosures is still on the rise in the US, mainly because the worse economic condition that we are facing at the moment. Last year more then one million families faced a foreclosure.
The foreclosure process is divided into three steps, upon which you can act:
1. Pre-foreclosure
2. Auction
3. REO
The bank will start to take steps when the borrower has missed his payments for a period between 3 tot 6 months. She will enlist a notice of default at the records of the county office. This is the official announcement that house owner is late with his payments and the bank wants to take legal steps. Also this is the start of the reinstatement period which usually ends one week before the auction takes place. Does the borrower not pay within the stipulated timeframe, then a foreclosure date will be determined. This is the official notice of sale that has to be entered in the records of the county office and also published in the local press.
The county courthouse is the designated place for the auction of a foreclosure. The bidding starts at an amount that is equal to the accrued interest, the loan balance and any additional fees. When there are no buyers at that price, then the attorney of the bank who conducts the sale, will buy the house.
Should this happen, that the property is now labelled as a REO or Real Estate Owned. This can happen when the perceived value of the property is lower then the total amount owned to the bank. But please note that I wrote perceived value. Because, what is of low value for many people, still can be of high value for the right buyer.
All liens except property taxes are removed by the foreclosure. The order of the liens is determined by the date of recording. So this saves you the work of researching if there are any others who have filed a lien on the property. By buying at the foreclosure you get a house with a clean title. - 31862
There are moments when you can make a quick buck with real estate. But with the current economic crisis that is unlikely to happen. The majority of the people invest for the long run. And a few like to make a combination. You can buy distressed properties and then completely fix them, if you are knowledgeable in the areas of electricity, plumbing, carpentry, painting, etc. Otherwise you have to hire subcontractors. Who can eat up a lot of your potential profit. When you do everything by yourself it is possible to sell a fixed property for two to three times the price you paid for. And then the next step would be to reinvest that money in newly bought distressed houses and double your money.
If you want to get into real estate investing for the long haul, you can buy up properties to rent out to others. You run a bit more risk this way, as you have to worry about having tenants in your properties on a fairly regular basis, and you do have property depreciation to think about. You also have regular maintenance costs. However, if you have the right amount of properties, this type of real estate investing can really pay off in the long run. Some find that if they have enough properties, they can often retire early with a good amount from rentals on top of other types of investments.
Whatever way you decide to go with real estate investing, you do have to have some money to get started. You can try to buy properties with loans, but that does get complicated. However, it is doable. Either way, you are risking your own money. While buying and selling homes quickly might not work during some periods of time, renting for income is something that is always a good idea. No matter what the housing market is doing, there are always people who need a place to live.
That brings us to the option of buying a foreclosure. In many cases this can be a very lucrative business. When being at the right place at the right moment, you can buy at half price. The number of foreclosures is still on the rise in the US, mainly because the worse economic condition that we are facing at the moment. Last year more then one million families faced a foreclosure.
The foreclosure process is divided into three steps, upon which you can act:
1. Pre-foreclosure
2. Auction
3. REO
The bank will start to take steps when the borrower has missed his payments for a period between 3 tot 6 months. She will enlist a notice of default at the records of the county office. This is the official announcement that house owner is late with his payments and the bank wants to take legal steps. Also this is the start of the reinstatement period which usually ends one week before the auction takes place. Does the borrower not pay within the stipulated timeframe, then a foreclosure date will be determined. This is the official notice of sale that has to be entered in the records of the county office and also published in the local press.
The county courthouse is the designated place for the auction of a foreclosure. The bidding starts at an amount that is equal to the accrued interest, the loan balance and any additional fees. When there are no buyers at that price, then the attorney of the bank who conducts the sale, will buy the house.
Should this happen, that the property is now labelled as a REO or Real Estate Owned. This can happen when the perceived value of the property is lower then the total amount owned to the bank. But please note that I wrote perceived value. Because, what is of low value for many people, still can be of high value for the right buyer.
All liens except property taxes are removed by the foreclosure. The order of the liens is determined by the date of recording. So this saves you the work of researching if there are any others who have filed a lien on the property. By buying at the foreclosure you get a house with a clean title. - 31862
About the Author:
Learn more about Real Estate Investing and locating sellers. Stop by Marcel Bongers's site where you can find out all about buying a foreclosure and what it can do for you.
