By David E. Williams
Investing in real estate is a popular, tried and true method of turning a profit. Several of today’s most affluent and famous personalities have made millions by doing this. However, not everybody has that level of capital available to them – in fact, very few do. You may be wondering if there is any way for people of less exorbitant financial means to get into the real estate investment business. Luckily, there is. Foreclosures, specifically government foreclosures, can be a good source of property in which you can invest.
Sometimes, when a foreclosure action is taken, the government takes possession of that property. It is now their property, with which they can do whatever they wish. So before doing an investment in HUD foreclosures one must be familiar with HUD homes. HUD is an acronym that represents the Department of Housing and Urban Development, a United States government agency.
Once foreclosure listings are listed on special Web sites that are contracted to the government almost anybody can buy one, providing they can either afford it or qualify for a sufficient loan. The government often sells some of those properties at reduced prices. Although people buying the house to live in have priority, eventually anybody can purchase government foreclosures. The buying process is done via foreclosure auctions.
Each state has different requirements for housing websites. Usually, states have a variety of properties for sale and will list information about each property in an attempt to sell the house to a customer looking for specific features (number of bedrooms, number of bathrooms, etc.) A picture is usually available to help potential customers decide, and you may sometimes be allowed to visit the property.
HUD houses come in all shapes and prices. When these foreclosure properties appear on the list for sale, their valuation is carried out on ‘as is’ condition and listed at estimated market prices. However, it is common to find them costing less than other houses would be. The reason is the prices take into account the cost of needed repair as very often these houses will require at least some repair work.
Qualified persons should inspect the property you bought as to whether it needs any repairs. Whether to sell it without repairing or to have the needed repairs done before you turn it around is left to your personal judgment. However, the probability of getting more money for the property is higher if it is repaired first. As every house is different and as different people advise differently, you will have to decide based on your best interests.
You are now in position to sell the foreclosure property, possibly at a huge profit. Government foreclosures are often very cheap compared to other property on the market, leaving a major money-making opportunity.
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, including all kinds of foreclosures such as