In this down housing market, you can still make money by flipping residential properties (http://www NULL.foreclosuredeals NULL.com/flipping-houses NULL.php). You just have to increase your know-how on good locations, available capital, mortgage lenders (http://www NULL.foreclosuredeals NULL.com/lenders NULL.php), home prices and the risks involved.
The number of Florida foreclosures (http://www NULL.bankforeclosuressale NULL.com/list/florida NULL.html) has made the state among the best places for individuals looking for bargain real estate investments. Before the housing meltdown, Florida, California (http://www NULL.california-foreclosure-homes NULL.com/) and Nevada (http://www NULL.nevada-foreclosure-homes NULL.com/) were among the hottest housing markets. These times of the meltdown, they can still be the hottest markets depending on your skills.
According to California-based foreclosure (http://www NULL.foreclosuredeals NULL.com/) tracking firm RealtyTrac (http://www NULL.realtytrac NULL.com/), the 2007 foreclosure rates (http://www NULL.eforeclosuremagazine NULL.com/category/foreclosure-rates) soared to higher levels in 2008, leaving hundreds of thousands properties foreclosed (http://www NULL.foreclosedpropertiesdata NULL.com/) and made available for sale. Among these are Florida foreclosures ripe for the picking.
Angie Hicks, owner of consumer service research site Angieslist.com (http://www NULL.angieslist NULL.com/), said an informal survey of its list members in 2008 found that of the 29 percent who bought homes within the six-month period of the survey time frame, 95 percent said they made profits from their home purchases.
The first key to investment success during this downturn is to make your own research, according to Hicks. Research the neighborhood, know the prices, compare prices and research development projects in the area. Among Florida foreclosures, look for units in neighborhoods that have community development projects.
Emma Allen, chief executive officer of Emma Allen Enterprises, says it is better to concentrate on an area that you know very well. She says she looks for bargains in communities where she herself would like to reside. Areas currently being rehabilitated with urban renewal projects are great opportunities. Allen’s advice fits investors looking for bargains in Florida foreclosures.
The second piece of advice is to check your available capital. Factor in renovation costs and carrying costs while you are looking for buyers. Remember also that you must pay the monthly amortizations while the mortgage is in your name. Make projections in case you can not sell the house within two or three months. If you are flipping Florida foreclosures, you may find great bargains, but factor in the average number of months a house is sold in the area.
Another advice is from veteran California flipper Nicole Sassaman. She says you need to have a cash reserve in the bank equal to 25 percent of the home price and about 18 months of house payments.
Home flipper Scott Patterson says you try to make low offers on targeted properties. He cites one example where he bought a $100,000-priced home for $80,000 and then sold it for $160,000 after some renovations. For Florida-based flippers, lots of low-priced homes can be found among Florida foreclosures.
Related Information:
- Foreclosure News (http://www NULL.eforeclosuremagazine NULL.com/)
- Tax Foreclosure Properties (http://www NULL.foreclosuredeals NULL.com/taxforeclosureproperties NULL.htm)
- Tax Foreclosures (http://www NULL.bankforeclosuressale NULL.com/tax-lien-foreclosures NULL.php)
- Cheap Houses for Sale (http://www NULL.bankforeclosuressale NULL.com/cheap-houses NULL.php)
- Foreclosure Listings (http://www NULL.foreclosurelistingsnationwide NULL.com/)
- Foreclosure Homes (http://www NULL.bankforeclosuressale NULL.com/)