Indigo Flag

Like many investors you probably have a number of properties in areas that may be hit hard by foreclosures. If this holds true for you, this post may be of interest to you. With the home market as unsteady as it is, it is likely that you have seen your investment portfolio decrease in the last few quarters. It can be very unsettling to many investors to watch the value of their properties decrease in value and feel like there is nothing you can do about it. Well I am here to tell you that there are some measures that you can take to help maintain the value of your investments in this down market and also increase the value of your portfolios at the same time. As many of us know there are nearly 4 million homeowners in jeopardy of losing their homes due to foreclosure and with April just around the corner a surplus of undervalued properties on the market will naturally drive down the value of nearby homes. A great deal of these homes will likely be in disrepair or have some other looming stigmata associated with them. Don’t let that be a deterrent to you, these may be great investments. How I see it, if it is possible to pick up a few of these properties at a discount, and have them renovated, this can greatly improve the value of the neighborhoods that they are located in. Now I know this may sound like it is textbook, but I suggest you do something different than simply trying to resale these properties. HOLD ON TO THEM. That is right; add them to your portfolios. Not only will this strategy remove an eyesore from a neighborhood but it can become a great rental unit for added cash flow. I suggest finding properties that you can purchase and complete the rehab without going too far out of the current comparable ranges. Even if the fix-up will take you a few thousand dollars out of the range it will still be good, chances are you will be able to make your money back over the few years in rental payments. Granted you are making at least $100 on your investment. So how do you find these foreclosures, there are many sites out there that offer prospects; one of the better ones is Realtytrac. Described as “the leading online marketplace for distressed properties” it offers over 900,000 default, auction and bank owned properties from across the country. They collect and organize foreclosure data from about 2500 counties across the United States, covering more than 94% of the homes in the nation. Realtytrac requires a monthly subscription of $49.95 but you can try the site out for 7 days free of charge. Another good site is HudForeclosed, the cost is a bit cheaper $99 for a 6 month subscription but they don’t cover as many locations as Realtytrac, and they only cover REO’s. RealtyStore is also a great site to check for these deals. This site offers REO as well as first time homes and upgraded homes. The monthly fee for this site will run you about $49.60 a little cheaper but still it doesn’t carry as many listings as Realtytrac. Fortunately they also offer a free week trial. So take your pick or try them all for a week and see which one offers the best deals for you personally. They are all great sites that I have used from time to time.