When it comes to making the most of foreclosure deals you need to concentrate on a number of different aspects. Timing is one of the key aspects to consider and it can make a great deal of difference in the value of foreclosure properties.
There is no denying the abundance of foreclosures taking place around the U.S. While many people have lost and are losing money others have plenty of great investment opportunities at bay. Currently investment in the foreclosure properties is a great idea considering the kind of offers there are at bay.
Big cities with big opportunities
Amongst the big cities offering plenty of foreclosures for sale is Nevada. You will be able to find a wide variety of houses of different sizes in some of the best areas of the state. California is another promising state currently facing heavy unemployment as a result of which there is an abundance of foreclosure properties. Investors are also being intrigued by the opportunities in Ohio and Michigan. Oregon happens to be another promising state for foreclosures.
Knowing where to invest and when to invest is important. But these are not the only things you need to consider if you want to make a successful venture out of your foreclosure investment. The above mentioned states do not only have foreclosure properties in abundance rather they have them at great discounted prices.
According to the statistics available, the state leading in foreclosures at the beginning of 2009 is Nevada, which recorded 14,444 properties in foreclosure. The percentage change from December 2008 is -3.96% and from December 2007 is 137.29%. The other states in the top 5 list include California with 76,761 foreclosures, Arizona with 14,674, Florida with 40,770, and Oregon in the 5th position with 357 foreclosure homes.
Determine the value of the property
It is however recommended that interested investors take an overview of the property in question so as to determine its actual value from an investment point of view. Any investor would want a property that gives him maximum returns. Prevailing trends indicate you can expect 25% to 30% return on investment in the above mentioned states.
One of the most important factors that will help to determine the true value of the foreclosure property is the condition of the house. In most cases you will be required to do some touch ups on the property. This will involve some more investment on your part. Hence you would want to go for a property that requires minimal repair work. On the other hand if you find a property that requires some repair work it should have a low purchase price. Either way you need to make sure that the initial purchase price plus the cost of repair allows you to earn a profit.
When looking for profitable foreclosure properties in Nevada or California you need to judge the value of the locality in which they are situated. It is true that a high rate of unemployment means you will be able to find cheap foreclosure properties but if that property is situated in an area which is fast losing popularity due to lack of jobs and a failing industry then the investment may not be worthwhile. Hence you could go for California foreclosure properties and still not be able to secure a good deal due to the changing trends. Hence the economic trends of the particular area in which you are looking to invest are a key factor in determining its true value.
