You know, the saying "one man's trash is another man's treasure"? What if that were true in the Philadelphia property market as well? However, it's not just treasure, it's a potential to earn big!
Foreclosures are not just discarded trash; they are great property deals that have high earning potential. Not yet convinced? Let us show you the facts when it comes to investing in foreclosures.
The Basics of Foreclosure Homes
Foreclosures are the perfect way to start setting yourself up in the Philadelphia property market. Foreclosed homes are often sold below market price.
But why? Well, foreclosed homes are properties that got repossessed by a lender or bank. This often happens because the previous owners fell behind on their mortgage.
The lender will try and recoup lost money by selling the home below market value at a public auction. This is where you come in and make a deal. Now that you know the basics of investing in foreclosures, let's discover the benefits.
Benefits of Investing in Foreclosures
Investing in foreclosures is a low-risk, high-reward outcome. It often takes very little capital to buy a foreclosed home. This means you have leftover capital to invest in renovations if needed.
Some homes may not even need any renovations, making them a turnkey investment. Therefore, the chances of finding a buyer or renter increase. These types of real estate opportunities don't come often.
With these types of investments you also increase your chances of having multiple investments. That is because your money goes a longer way when you invest in foreclosures.
Comparing Distressed Property Deals and Foreclosures
There is a slight difference between distressed property deals and foreclosure homes. Although the idea of investing low and earning big remain the same, there are differences.
For starters, distressed property deals often do need significant renovations. In contrast, a foreclosure home could need little to no renovations.
However, it's important to know that a distressed property can also be a forecloser. Thus, making it significantly cheaper. Don't feel let renovations scare you away from making an investment.
There's potential to outsource certain renovations. For example, you can hire a property manager through a trusted third party. Outsourcing renovations can lead to less stress and save you money overtime.
How to Manage a Foreclosure Home Turned Rental Property
Investing in foreclosures with long-term goals can be difficult to manage overtime. There are many variables that come with having a rental property. For example, screening for the best tenants, maintenance, and everything financial.
Luckily, you're never really alone, because companies like PMI Contra Costa help with Philadelphia real estate investing. Consider hiring an experienced property manager. This way, you can enjoy your investment without any added stress.
Foreclosures Made Easy
Foreclosures and distressed property deals should not be overlooked. They have a potential to earn money in the current Philadelphia property market. The only difference is the risks are lower with these types of investments.
If you're ready to earn big, contact us today to find your next investment. Not ready to be a full time landlord? Don't worry, we also offer the best property management services.
