Building Your Foreclosure Portfolio

The current real estate environment is ripe with potential issues that must be taken into consideration. Local real estate prices, mortgage worthiness and local economic and employment conditions are only some of the variables that an investor in foreclosures must take into account. If someone is just beginning to invest in foreclosures to build their real estate portfolio, it is important to understand that decisions made now can and will affect financial flexibility later.

Before Buying A Foreclosure…

Questions that buyers must ask themselves (and answer) are:

  1. What are your short-term real estate investing goals (i.e., how many foreclosure homes the first year)?
  2. What are your revenue generation goals for buying foreclosure properties? Breaking even is not a goal that is called a mistake and should not be repeated.
  3. Am I willing to be a landlord? If no, collect stamps or buy lotto tickets.
  4. What is my credit like? If you need to improve your credit, start now!
  5. How much cash am I working with? If none, study Hard money
  6. What are long-term real estate investing goals? Don’t fire without aiming.

Be sure to ask yourself these questions before beginning your real estate investing and foreclosure portfolio. If you already have investment properties, you should still ask yourself these questions. Write your answers down and refer to this list before making any decisions with regard to purchasing your next foreclosure home. Do not be afraid to reassess your goals to be sure that your current actions are still on track with your long-term real estate investing goals.

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Guest John says:
2013-May-21 07:40
 
 
at Tim
Tim, many hard money lenders will fund the deal based on numbers alone, no money out of pocket.
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Guest John says:
2013-May-21 07:38
 
 
@Tim
Tim, many hard money lenders will fund the deal and repairs based on the deal alone, no money out of pocket.
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Guest Tim Rousan says:
2013-Jan-08 08:37
 
 
Realtor/Entreprenuer
I fall into the category of Hard money.
As a Realtor I have no track record for doing this,However If making a decision based on the value of the property after I fix it then it is a no brainer! Just dont have the cash available yet.
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Guest John says:
2013-May-21 07:44
 
 
Find the deal first
Many hard money lenders will fund the deal based on the numbers, no out of pocket money needed.
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Guest Michael says:
2014-Jul-17 13:26
 
 
CEO
Just keep in mind with Hard Money the lender does not (in most cases) allow occupancy. This can be very important to your schedule. Refi out of the Hard Money loan ASAP and Hard Money is a great option.
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