'Real esates' is a common misspelling for 'real estate'. Both spellings refer to real property or raw land used for housing, commercial buildings, farming or ranching. In reality, Earth is one gigantic ball of real estate opportunities!
Today, people are leery of investing in real esates. It's no wonder. With housing prices dropping at unprecedented rates, sellers are reluctant to sell their properties because most of them would take a financial loss.
On the flip side, buyers who invest in real estate today have the potential to yield tidy profits once the market turns around. With the abundance of foreclosure and bank owned properties there are many cheap homes for sale.
Foreclosure homes are a dime a dozen these days, but that doesn't mean they are a good investment. Investors need to conduct thorough research before placing bids through auctions. Many foreclosed properties have tax and creditor liens attached. Others have second mortgages. Clearing these attachments can be costly and time consuming. It is not uncommon for closing on foreclosure homes to take up to six months.
Bank owned properties are foreclosure houses that didn't sell at auction. These homes are returned to the lender and offered for sale through their loss mitigation department. Bank owned properties are usually priced higher than foreclosure properties, but they come with a clean title.
When real estate is returned to the bank, lenders negotiate with creditors to remove liens. Occasionally, lenders invest money in repairs, but more often real estate owned (REO) properties are sold as-is.
Short sales are becoming increasingly popular amongst investors. Some lenders offer short sales to borrowers who have become delinquent on their mortgage note. If the borrower is able to locate a qualified buyer within a short period of time, their lender might agree to let them sell the home for less than is owed on the loan.
One of the best ways to purchase short sales is by offering cash. Doing so increases negotiation power and can expedite the sale. Many banks hire realtors to list and sell distressed properties. Both lenders and realtors list short sale real esates on their company websites.
A lesser known, but highly profitable real estate investment is that of probate properties. When a person dies everything they own is transferred to probate, unless they have established a trust. Probate usually takes 9 to 18 months to settle. During this time the estate is responsible for all related expenses including paying mortgage payments and maintaining real estate holdings.
It is not uncommon for estates to be unable to pay real estate expenses. In order to eliminate the financial burden, the estate administrator can sell the property. Some states require administrators to obtain court approval prior to selling. If more than one heir is entitled to the property, all heirs must agree to the sale.
Tracking down probate real estate requires some investigative work. Investors must search public records for probated cases and contact the estate administrator with an offer to purchase the property.
We invite you to browse our real esates articles library to learn more about each type of real estate investment. New articles are added each week, so take a moment to subscribe by entering your email address in the subscription box on the right side of this page. We look forward to becoming your trusted source for real estate information.
Tagged: Distressed Properties, Estate Administrator, Foreclosure Homes, Loss Mitigation, Probate Properties, Probated, Real Esates, Real Esates Articles, Real Estate Investing, Realesates, Realestate, REO, Short Sales
Published on May 26, 2009 at 01:52 AM
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