Best Foreclosure Locations
Importance of locality of foreclosures: Location of foreclosure property is critical for profitability of your foreclosure business.
Where are good neighborhoods for foreclosure homes?
- Pick areas where owners spend their time and money on their houses.
- Well-maintained homes
- Streets with no junk cars or garbage
- No or low-crime areas
- Convenient location
- Active real estate market
Find low and middle income areas of foreclosures
- Start with properties located in low- and middle-income areas.
- Stay away from expensive neighborhoods.
- You will not able to find enough fixer-upper foreclosures in expensive neighborhoods.
- Rehabilitation costs will be higher.
- Potential to improve may not be as high as for those in the low- and middle-income level neighborhoods.
- Property values in expensive neighborhoods may change dramatically, which means too much risk.
Go the extra mile in selecting foreclosure properties!
Your ultimate goal is to find undervalued foreclosure home. Unprofessional looking "For Sale" signs are indication of poor marketing effort, mostly neglected properties.
- Pick up houses that require more than cosmetic repairs.
- The worst-looking house may be your best bet, since most people stay away from them due to their appearance (don’t judge the book by its cover!).
- Your profit potential increases as you go from cosmetic fixing to more comprehensive fixing.
Stay away the following foreclosure homes
- Homes with structural and environmental problems. These are problems that only professionals, not you, can correct.
- Homes that are next to interstate highways, freeways, apartment complexes, behind shopping centers, fire stations, industrial parks, high electrical voltage lines, and commercial zones.
- Roofs with curled up shingles, chipped paints, broken windows, backyards with tall grasses or full of weeds are signs of neglected properties. While replacing roof and all windows can be very expensive replacing window glass or repainting may be less expensive.
Additional considerations in selecting ideal areas for foreclosures
Concentrate on vacant homes but stay away from areas where there are so many vacant homes. Clip news about average home prices and select areas where home values appreciate and stable rather than fluctuating dramatically.
Remember the most repeated word in real estate business: Location, location, location. Review information on home neighborhood and best foreclosure locations when selection geographical areas that you plan to buy bank foreclosures and government foreclosures.