Investment Properties Getting Started ~ Hampton Roads Real Estate Ramblings

Investment Properties Getting Started

Sunday, June 15, 2008

Hello Hampton Roads,

Investment Properties—Getting started is not as difficult as you may think. Every homeowner is a potential real estate investor and in today’s buyer’s market with property values trending downward and foreclosures trending upwards, the idea of purchasing an investment property at a good deal seems to be at the top many peoples’ minds.

In fact, real estate investing continues to make Americans wealthy, even during the current soft housing market. The prudent investors are those who have waited years for the real estate price bubble to burst, just so that they could step in and acquire discounted properties at wholesale or below wholesale. Buying at a discount to intrinsic value is the surest and safest way to build wealth.

According to RealtyTrac, US foreclosure activity is up 48% from May 2007 and this is the highest monthly foreclosure rate since results were tracked in January 2005. The unprecedented number of foreclosures listings throughout the country and in our area of Hampton Roads, represents a good buying opportunity. These properties run the gamut from true re-habilitation projects to resort condos and stately, million dollar homes. There is a house for every type of investor, and if you are a buyer in this market, you are doing yourself a dis-service if you don’t look into foreclosures.

One of the best ways to start investing in foreclosures is by buying REO (Real Estate Owned/Bank owned) properties. REOs account for 28% of the 48% increase mentioned above. These transactions are essentially the same as a typical real estate sale, and bypass many of the pitfalls and uncertainties found in foreclosure auction sales. With an REO property, you can utilize the services and expertise of a Realtor to represent you, you can have a home inspection done to the property before you buy, and take the advice of a real estate attorney to guide you through the closing process. Another great advantage of REO purchases is that you don’t have to show up with cash downpayment like you do at an auction. In many instances, you can apply for a regular mortgage, and if you do so with the bank that owns the foreclosure REO, you may also be given a discounted rate or closing cost assistance!

For a complimentary list of foreclosed/REO properties throughout Hampton Roads, please feel free to contact me directly. I would be happy to guide you through the process.

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For your real estate needs, visit my website at
http://www.hamptonroadsrealestate.us/