One of the most common approaches that Des Moines real estate investors take to maximizing their profits is to purchase properties that have been foreclosed upon. Whether you are new to the real estate investing game or simply new to this approach, you are probably wondering if there is enough money to be made in foreclosures to outweigh the risks. Of course, many real estate investors have built their entire portfolio off the backs of foreclosures but there are many factors that you need to consider before following in their footsteps.
How Much Experience Do You Have Investing In Des Moines Real Estate?
Are you fairly new to investing in real estate? Or are you new to investing in the Des Moines real estate market? If so, starting out with a foreclosed property may not be the best idea. Since foreclosed properties are often in a significant state of disrepair, they hold a greater potential to become a money pit for an unseasoned investor. Even if you have dealt with several foreclosures in other areas of the country, you may not be privy to what could await you behind the scenes of a Des Moines foreclosure.
The Pros Of Des Moines Foreclosures
Obviously, there is a ton of money to be made in investing in foreclosed Des Moines properties. Aside from that obvious benefit, here are some of the other pros to consider:
The bank is motivated to sell which results in a lower sales price
The title will be clear of liens
You are still allowed to have an inspection for your protection
It is possible to purchase foreclosures without any money down
The seller may be more motivated to make repairs
The Cons Of Des Moines Foreclosures
Foreclosures are not all sunshine and rainbows. There are plenty of negatives that you need to consider before deciding that a foreclosure is the approach that you want to take to investing in Des Moines real estate. Here are some potential cons that you could encounter:
The bank does not need to provide a seller’s disclosure
The bank won’t usually pay your real estate agent’s commission
The property has a greater chance of being in disrepair
The lender may not approve of the price
Protecting Your Investment
Ultimately, the best thing that you can do to protect your real estate investment portfolio is to enlist the help of a real estate agent that specializes in investment properties like myself. Not only is it free for you to work with me in purchasing your next investment property, but leveraging my keen eye and negotiation experience will help you extract the maximum value on your investment.
For more information about investing in Des Moines real estate, send me an email or give me a call and let’s discuss your goals.
Liz and Chase