It can be hard to get the seal of approval from your father in law over anything. But my wise old father in law had no problem supporting my company’s idea that foreclosed property always makes for a wise investment as long as you make the right decisions and work with the best people whom you can trust. Our foreclosed property team at Castleroc Estates have much experience in the industry and know that this idea works. Let me explain further.
On our side of the world we rarely see or hear of foreclosed property for sale, the term foreclosed itself is uncommon, I worked for a Bank for most of my adult life and cannot recall the term in use. So what is foreclosure and why should a person want to buy foreclosed property?
I will now show you a practical example of the foreclosure process. This example is based on fact. A full guide to the process of foreclosure can be found on our website www.foreclosedproperty.ie.
An investor bought an apartment property in the Azur development in Metro West, Orlando. The apartment consisted of a 1248 sq ft 2 bed / 2 bath costing $236,900. The apartment closed in the middle of 2006 and has been rented since then. A mortgage was obtained for $177,000 against this apartment, but things started to go wrong once the financial crash occurred. The over inflated property bubble in America had burst and this led to a sharp fall in property prices in Florida and across America. This apartment ended up being foreclosed and it soon came into our possession. We have refurbished and repainted the property and the price right now is $71,900. The current tenant pays $850 per month. The costs of holding this apartment are property taxes plus assessment charges which total $5780. The rent amounts to $10,200, an excess after essential costs of $4420.
So what ever happened to the investor in this example? In America, mortgages can be secured on the basis of no recourse to the person. The investor had one of these recourse mortgages so he simply handed back the keys to the bank. It is from this same bank that we purchase our units for sale on our foreclosed property listings.
The idea of foreclosed property as a sound investment opportunity bears fruit in reality. The current low entry levels to foreclosed property in Florida are highly attractive to perspective investors. This is especially true for people with cash just resting in a bank earning less than 1%
Foreclosed property investment should spark off an investment interest inside you. However, this investment opportunity might not be around for long. The market dictates everything and things constantly change. The Orlando Sentinel newspaper highlighted different reports that existing property sales were up for the 3rd consecutive month and foreclosures decreased by one-fourth from the previous month. So invest in foreclosed property as soon as you can.
The state of Florida is unique. The average state income is $45,000 per year and banks are very reluctant to give out mortgages for less than $50,000. This situation allows for richer neighbouring states and countries to purchase properties that will actually realise a strong return on investment. This is what it all boils down to. Making money is what it is all about and this is something my father in law well appreciates
Learn more about foreclosed property investments. Stop by Eamonn Curley’s site where you can view all his bank foreclosed property listings for yourself.
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Tags: buying property, foreclosed property, property investment, property management, Real Estate