Top 3 Mistakes Vero Beach Florida Investors Make when Buying Foreclosures
Foreclosures have the reputation of being very profitable investments for real estate investors. While that can be true, they can also be very dangerous investments where you can lose a lot of money. In this article, weÍll go 3 of the most common pitfalls Vero Beach Florida investors make, so you can avoid these mistakes if you decide to invest in foreclosures.
Pitfall #1 All Foreclosures are Good Deals
This simply isnÍt true. Foreclosures are often in terrible condition. For that reason, banks and the government are often willing to provide major discounts on the propertyÍs price. Even then, however, the property may not be a great investment.
ItÍs only beginning investors that think all foreclosures are good deals. Experienced investors know that just like anything else, finding a good foreclosure property takes time, expertise and research.
Pitfall #2 Jumping into Fixer Uppers
WeÍve all heard of people whoÍve made millions buying shambled houses, fixing them and then flipping them. While this can be a very profitable model, it also has its pitfalls.
The biggest pitfall is beginning investors who jump in to the fixer market without the expertise to back it up. Unless you can predict how much your repairs will cost, how much you can sell the property for and then work your way backwards to what the selling price must be in order to be profitable, then youÍre not ready for a fixer upper.
There are many profitable deals that donÍt require the level of expertise that a fixer does. For a beginning investor, itÍs usually better to start with those deals.
Pitfall #3 Not Performing Good Research
Good research is a key component to being profitable in the foreclosure market. You must know how much your property can sell for in the market. You should know what the trends in the area are, including community projects, new buildings that are being built, crime rates, etc.
You should also be sure to get a home inspection. If youÍre bidding on multiple properties at an auction, itÍs important that you actually step foot in all the properties you plan on bidding on before you bid on them.
These are 3 of the more common pitfalls that Vero Beach Florida investors tend to fall into. By avoiding these pitfalls, youÍll set yourself ahead of most beginning foreclosure investors in Vero Beach Florida
There is a lot of free information available to you about buying, selling or investing in Vero Beach Florida real estate. For complete information about the Vero Beach Florida real estate market including current homes for sale, property values and more please visit our Indian River Home Sales website online dedicated to everything Vero Beach Florida real estate. So please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 772-766-2521 or email me at email@example.com.