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HouseCenter.Com Tips for Investor

Part I: Introduction Tips

Real estate investor must be alerted it is an art in stead of money makes money.

Question: Where is the information on HUD foreclosures?
Answer: Please visit their Web page at http://www.hud.gov.

Question: Do you know anything about IRS properties?
Answer: You may visit the IRS property website at http://www.treas.gov/auctions/irs/.

Question: What is the return on property remodeling?
Answer: You could expect to recoup 20 to 75 percent of the remodeling cost, according to the survey.

Question: Is that a good idea to do fixers in bad areas?
Answer: It depends. However, If you are a new buyer, it may be wiser to look for properties that only need cosmetic touches rather than tackle houses that need major structural fixes.

Question: How does a home go into foreclosure?
Answer: Foreclosure process usually begins after a borrower has skipped three mortgage payments. The lender will record a notice of default against the property. Unless the debt is satisfied, the lender will foreclose on the mortgage and proceed to set up a trustee sale. Unfortunately, many home owners don't know 60 percent foreclosure cases could be reversed by talking to the lenders for solutions.

Question: Are foreclosures a good option?
Answer: Thousands of homes end up in foreclosure every year, it depends on different regions. Economic conditions usually affect the number of foreclosures, too. Many people lose their homes due to lose their jobs, credit problems or unexpected expenses. It is wise to be cautious when you go to a foreclosure. Inexperienced buyers should hire an expert to help them through the process.

Case Study 1: Few years ago, we had purchased a downtown commercial property in Greenville, South Carolina. Previous our purchase, the property set there for three years, the listing price dropped several times from $135,000 to $85,000, and still no buyer coming in. We made an offer then, and got it at $55,000. We sold it four months later in 30 minutes - by using real estate property auction at the price $77,000.

Case Study 2: Few years ago, we had purchased a downtown property in Columbia, Missouri. We got it at $35,000 at a real estate auction. We sold it four months later by listing with a real estate company at the price of $65,000.

Case Study 3: Few years ago, we had purchased a residential property in Greenville, South Carolina. We bought it at $115,000, and sold it by using FSBO (For Sale By Owner) two years later at the price of $147,000.

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