3 Ways to Invest In a Foreclosure and Earn Money

What is a foreclosed home? When a homeowner fails to make three consecutive mortgage payments, the bank or financial institution takes control of the property. While this is bad news for the property owner, it can be a great opportunity for profit for property buyers. 

Some of the benefits of buying a foreclosed home include: 

• Below market price
• Possibility of better financing options 
• Higher return on investment 
• Quick buying process

Of course, to enjoy the benefits of purchasing a foreclosed home, you need to know exactly what you are getting into. That’s why it’s always advisable to work with a professional realtor, as they can guide you through the process and ensure you are getting the best value for your money. 

Our Calgary Realtors Are In the Best Position to Get You a Great Deal on Your Home 

It can be a huge challenge to buy a home in today’s market, especially if you are a first-time home buyer. However, our team of top Calgary realtors are in the best position to help you get your dream home at a great price! We have 40 years of experience in the industry and strive to go above and beyond your expectations and meet all your specific needs. 

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3 Ways to Invest In a Foreclosure and Earn Money 

The goal of every real estate investor when buying properties is to see a good return on their investment. As a general rule, the less money you put upfront for an investment property, the greater your ROI is. Since foreclosed homes are listed at low prices, investing in them gives you a higher potential for making a good return on investment. 

Here are some ways you can invest in a foreclosure and earn money: 

1. Fix and Flip 

This is one of the  most popular real estate investment strategies for making a quick profit. Foreclosures are perfect for a house flipping business because often they come at a cheap price, so you can work on renovating and adding value to them, and then sell them at a higher price for a quick profit. 

Some of the things you should keep in mind include: 

• This is not a cheap investment strategy. You’ll need a lot of cash to renovate the home. 
• Be sure to account for the costs of repairs before buying a foreclosure. 
• Don’t spend too much on unnecessary renovations only to end up lowering the asking price just to sell the property. 
• Make sure to identify which improvements will actually add value to the foreclosure investment. 

Whatever renovations or repairs you aim to do to the foreclosed home, to get the best return on your investment, remember to always stick to your budget. 

6 TIPS FOR GETTING THE BEST DEAL WHEN BUYING A FORECLOSURE
 

2. Rent 

Many beginner investors dream of owning a rental property because they have some incredible benefits to offer, including: 

• Monthly rental income
• Tax breaks
• Protection against inflation 
• Future appreciation 

For any savvy investor, a great solution is to buy a cheap foreclosed home and then turn it into a rental property. When doing this, you shouldn’t include any major renovations in the fix and flip strategy. 

Instead, focus on reasonably priced renovations that make the property livable and able to generate rental income and positive cash flow. 

WHY YOU NEED TO INVEST IN A FORECLOSED HOME
 

3. Wholesaling 

Another investment strategy you can follow to make money from investing in a foreclosed home is wholesaling. As a wholesaler, you look for distressed homeowners who are looking to sell their property. Instead of buying the property, you assign it to a contract. Following this, you find an end-buyer and sell him/her the contract. 

How can this benefit you? You’ll be able to invest in real estate without buying and owning property. It also provides a way to get into the real estate investing business with little money. 

However, to succeed at real estate wholesaling, you need:

• To know how to find pre-foreclosure homes
• Have the negotiation skills to make good deals with sellers
• Have a network of buyers ready to make a purchase

If you believe you have what it takes, then wholesaling can prove to be a great and affordable way to invest in foreclosures. 

Our Top Calgary Realtors Can Help You Get the Best Deal On Your New Home

At Mel Star, our team of top Calgary realtors have sold thousands of foreclosed properties. We understand all the ins and outs of this complex process and we can help you navigate this situation smoothly and successfully, ensuring you get the best price for your dream home. 

To find out more, contact us at (403) 284-6333 or fill in our contact form.