First Step Equity

Services for Real Estate Pros - First Step Equity
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Matt Nacar

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The first thing one must remember about the market today is the fact that we are at a 40 years high for foreclosure. This means home owners are losing their property, equity and credit all in one hit. However there are a few options available to get these homes before the auction and help the current home owner at the same time. You first must get the market value and the loan balance, from there you know the equity in the home. In some homes there’s a gold mine. Also as a home owner in distress with the proper strategies you can slide out from under the rock of debt with credit intact, while establishing moving cost. * Low Prices: Foreclosure sometimes sells for 20 to 50% below their true market values. More modest discounts of 5 to 10% are more common, but foreclosures are almost always priced lower than homes in the traditional real estate market. * Great fixer upper homes: Many foreclosed homes are ‘fixer upper homes’ that need repairs, renovation and tender loving care. By investing a little sweat equity, most homebuyers find they can make significant profit by reselling the home after some relatively quick and minor repairs. * Lower closing costs: The bank and government agencies that sell foreclosed homes are in a hurry, which means that they are often willing to accept lower offers on down payments, financing options, closing costs and all the other miscellaneous costs associated with buying a home. Many sellers will come right out and offer buyers great deals and contract terms simply to sell the house quickly. * No move –in delays: Most foreclosures are vacant, meaning that you can move in almost immediately after purchasing the home, without having to wait for the previous owners to move out. * Flexible financing: When banks sell foreclosed properties, they’re often willing to offer very flexible financing terms to sweeten the deal and sell the property more quickly. * Profitability: Because foreclosures are so inexpensive, they’re great options for resale, equity-building, renting, and other investment purposes. You can easily make a tidy profit, and quite possibly make your personal fortune by wisely investing in foreclosed properties. Buying foreclosure property has been going on for many years. Real estate investors were the only individuals utilizing these tactics. We now make it possible for anybody to step into this field of investing. Get Financing Obtaining financing in advance of a purchase allows you to determine what you can afford. It also allows you to move quickly once you find a property and establishes that you are a serious buyer. You will also not have to be concerned with "due on sale.”Whitch states that if the home is sold to another party the bank can call the loan due in full. Contact an agent If you’re a first-time buyer of a foreclosure property, a local real estate agent can help you through the process. Make sure that the agent understands your priorities, and has experience with foreclosures. Agents will see you as a serious buyer if you’ve already secured financing.