Diversity is the key to cushioning your portfolio against economic downturns in any one sector of the real estate market. The profits to be made on homes in various stages of foreclosure are difficult for investors to ignore. However, to the inexperienced investor, the nuances of this market sector may seem daunting. Knowing when to back away is as important as knowing you should jump in. But don’t let that stop you from exploring this highly profitable venture. Reaching out to experts to assist you with foreclosures can help you build confidence and save you valuable time and money as you take each step.
Of course, you should have a financial plan for the investment and understand how it fits into your overall real estate investment portfolio before you begin your search. In addition, it’s helpful to understand the purchasing differences during the different phases of foreclosure. Finally, you should also know that these deals can move extremely slowly through the system, so remain patient.
So read on as we explore five things to know about buying foreclosure properties in NY.
One of the essential things to know about buying foreclosure properties in NY is the stage of the property’s process, pre-foreclosure, auction, or post-foreclosure. Naturally, pre-foreclosure is the most desirable stage from an investor’s viewpoint. The homeowner is under pressure to sell and is still available to provide details for the disclosure process, but you must keep in mind not all pre-foreclosures are for sale. In addition, the setbacks that caused the default are temporary for some, so be mindful of this as you approach them about their property.
Another thing you should know about buying foreclosure properties in NY that have reached the auction or post-foreclosure stage the properties will sell as-is. There is no allowance for inspections; the property may have existing liens, and the buyer must pay cash. Post-foreclosures are also known as real estate owned properties (REOs), wherein the property didn’t sell at the auction, the lender will now sell to recoup their losses on the mortgage loan, without the cash requirement of the auction. These properties can be appraised and inspected, and while you may be able to negotiate with the bank, it will likely require much more patience than typical investment properties.
Look Towards the Future
Just as you would with any other property, you should know the long-term outlook of the investment when buying foreclosure properties in NY. In addition, you must understand the local real estate market, tap into future city plans for improvements, and pay attention to the signs that indicate neighborhoods are undergoing revitalization, which may not appear so desirable today. Of course, you can improve the structures, but you cannot pick up land and relocate the property, so choose wisely with long-term value in mind. Professional investors like those at Prestige Home Buyers dedicate themselves to staying on top of trends and upcoming plans for NY markets to help investors like you buy the right foreclosure property at the right price.
While foreclosures are close to historic lows, you should know about the competition when buying foreclosure properties in NY. For example, in January 2022, the U.S. Foreclosure Market Report from ATTOM property data shows properties with some type of foreclosure filing increased 29 percent from the month before and 139 percent compared to January 2021. However, along with this, you should be aware that foreclosure completions still fall far below normal levels. Therefore, as investors scramble for these properties, the competition remains fierce. Consequently, you need to have your plans in place, stick to your budget and bring your A-game to the negotiating table, ready to move when opportunity knocks. By working with an experienced professional investor, like those at Prestige Home Buyers, you’ll stand out from the crowd.
Prestige Home Buyers
The professional investors at Prestige Home Buyers know the ins and outs of buying foreclosure properties in NY; they will guide you along the way, allowing you to gain your footing in the world of investing in foreclosures and avoid the pitfalls that derail other investors. At Prestige Home Buyers, we have been building a team of the most reliable professionals from every walk of our industry-wide network for years. This vast network of real estate connections gives you an instant leg up on the competition and gives the pros at Prestige Home Buyers the inside scoop on upcoming foreclosures. Surround yourself with the team of experts at Prestige Home Buyers who can jump into action to help you with your investment strategy and make sure your foreclosure investments are sound. Prestige Home Buyers is ready to help you reach your investment goals, from locating foreclosures to cleaning and even managing your investment properties. And don’t forget to ask about our current inventory of the best foreclosure properties available in NY at Prestige Home Buyers. Contact Prestige Home Buyers today at (631) 336-9166.