It's estimated that 62% of homeowners often struggle to make their mortgage payments on time. When a person or family falls too far behind on their mortgage, the bank can choose to repossess the house.
These are known as foreclosures. When a property becomes foreclosed, it belongs to the lender, typically a bank, who can choose to sell it at an auction. These types of distressed properties represent a potentially valuable investment opportunity for real estate professionals.
But what are the pros and cons of foreclosed homes? And how do you find them? In this foreclosure buying tips guide, we'll answer these questions so you can decide if distressed Melbourne real estate is right for you.
What Are the Pros and Cons of Foreclosed Properties?
The biggest benefit of buying distressed property investment is that you can usually find a great deal. Since the previous owner likely couldn't afford repairs, you can get them cheaply.
That also means depending on your flipping skills, it can lead to high profit quickly. Unfortunately, there are some downsides too.
First, it's competitive. A lot of people want foreclosed properties so you'll need to know how to navigate the Melbourne property market.
Next, it's going to require a lot of upfront money. This isn't just for the sale, but also for the repairs on the home.
Sometimes the repairs can make the property high risk if they turn out to be more expensive than anticipated. Foreclosed properties will also be lengthy to acquire and involve complex financing.
How to Find Foreclosures
The best way to find distressed and foreclosed properties is to check on foreclosure websites regularly. For example, Brevard County keeps an up-to-date foreclosure sale list.
Then, you need to go to the auctions and bid on them. We recommend doing your research on the property beforehand. That way, you don't end up with a bad property due to a split-second decision.
How a Property Management Company Can Help You
Once you buy and renovate a foreclosed property you have two options: you can either sell it or rent it. A property management company can help you with either of these real estate opportunities.
The goal with distressed property investment is to flip it and sell fast. Companies like PMI Space Coast know all of the real estate trends to help you find a seller quickly.
Or, if you want to rent it, they can manage everything for you. This includes rent collection, maintenance, accounting, marketing, screening, and more.
Interested in Property Investment? Contact PMI Space Coast
We hope this guide helped you learn more about foreclosures in the Melbourne area. Here at PMI Space Coast, we know that making the call on these types of distressed properties can be hard.
That's why we offer our twenty years of expertise to help you decide if it's a good idea for your portfolio.
Not only that, but we can also help you manage both residential and commercial properties. So if you're ready to start making profitable passive income, get in touch with us today.
