The Important Tips

If you are a real estate investor and want to make attractive profits from Dallas investment property, here are a few tips that can help.

•    Do not fall for the appearance of the property.

•    Conduct due research before purchasing the property.

•    Evaluate and assess the property from the inside to determine  the magnitude and cost of repairs to be conducted before the property is ready to sale.

•    Hire a professional inspector instead of doing it yourself.   His estimate can be used to secure hard money loans.

•    Research the neighborhood. Does it have a demand for rental properties or properties for sale? If your strategy is buy/fix/rent and the neighborhood does not have a rental market ,you might end up with a vacant property.

•    Work out the math. Unlike regular real estate investments, the purchase cost in foreclosure investing includes repairs as well as the  rehab costs. Extensive repairs might eat into your estimated profits. Work out the numbers diligently to avoid losses.

•    Check your finances. Foreclosures are often sold on cash on sale basis. It is better to have your finances ready before you purchase the property. Else, you might lose the property to another cash-rich buyer.

•    If you are not a cash-rich investor, getting a pre-approval for loan will also help.

With these things in mind, you can successfully invest in foreclosures.