Ontario Tax Sale Property     

Providing free tax sale property listings for Ontario, Canada    


Investing in Foreclosed Properties




Source: Martin Lukac - United States

There are a lot of people looking to make money in real estate -- quickly and with no money down. Real estate foreclosures are said to be an instant success. Are they?

Foreclosure properties have the potential to be a good place to invest for exponential growth or loss. There are some situations out there for little or no money down, but you should take some precautions because foreclosed properties come with significant risks.

There are many ways you can invest in foreclosed properties. The most popular way is to purchase a property, fix it up and rent it out, creating a positive monthly cash flow. The investor becomes a landlord, and assumes the responsibility of an investment property owner.

The second way to make money is to seek out foreclosures or fixer-uppers, buy them, invest in repairs and remodels and then sell them at a profit.

The third way is to buy a nice foreclosure that is underpriced and sell it immediately at a higher value. This often comes through selling at a higher value through a take back. For example, you buy a $100,000 house at a foreclosure for $50,000. You pay 10% down and create a new mortgage for $45,000. You then turn and sell the property for $80,000 with 100% seller financing.

Underpricing the house pulls in a buyer quickly. By taking a promissory note for $80,000, you have now created a $35,000 note for yourself. The buyer pays you on the $80,000 and you pay on the original $45,000 note.

If you are paying 8% interest on a 30 year mortgage, and the buyer is paying you 9.5% on a 30 year mortgage, you will be making around $306 a month. If the borrower stays in the house for 30 years, you will make $88,295 in interest and $30,000 in capital gains after paying the interest on the first note. And all you originally spent was a $5,000 down payment.

The downside is that not all mortgages allow an owner to do this. Most loans today contain a "due-on-sale" clause, meaning that if you sell the property, you must pay off the mortgage immediately.

But before you start out on any real estate investment adventure, here is some advice.

Make sure that your spouse or other investors understands exactly what will and could happen. You are entering a life of property management. Calls in the night from tenants and other risks are commonplace.

You should take the time to become well educated. Don't just read one column and decide this is the time to start bidding on properties. There are plenty of real estate agents who would be happy to talk with you about the world of foreclosure properties. There are many books that will help you learn the intricacies of investing.

You have to realize that not all foreclosures are good deals. Not all foreclosed properties sell for undervalue. A buyer can always default on owner-financing. Most loans today don't allow you to sell a home without paying off the loan. You will face repair cost, tenants who don't pay their rent, damaged property, changing interest rates and taxes.

If making money of foreclosures was easy and a sure bet every time, everyone would sink their retirements in it. But it isn't easy. Remember that it is a gamble. Don't worry, there will always be another foreclosure. Take your time and really research what you plan to do. With high sales prices on homes, we'll be seeing more foreclosures up for auction in the future.

About the Author

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today.




Next: How To Avoid Negative Equity In Real Estate Investment Financing

Previous: How To Make Money Investing In Real Estate Foreclosures



Add to del.icio.us Add to Reddit Add to Digg Add to Del.icio.us Add to Google Add to Twitter Add to Stumble Upon
Add to Informational Site Network
Report
Privacy
SHAREADD TO EBOOK








Android app on Google Play

Tax Sale Property Listings

Canada:
Current Ontario Tax Sale Properties - EBook Guide

Ontario Tax Sales - 2016
Ontario Tax Sales - 2015
Ontario Tax Sales - 2014
Ontario Tax Sales - 2013
Ontario Tax Sales - 2012
Ontario Tax Sales - 2011
Ontario Tax Sales - 2010
Ontario Tax Sales - 2009
Ontario Tax Sales - 2008
Ontario Tax Sales - 2007
Ontario Tax Sales - 2006
Ontario Tax Sales - 2005
Ontario Tax Sales - 2004

Current Alberta Tax Sale Properties

Alberta Tax Sales 2014
Alberta Tax Sales 2013
Alberta Tax Sales 2012
Alberta Tax Sales 2011
Alberta Tax Sales 2010
Alberta Tax Sales 2009
Alberta Tax Sales 2008
Alberta Tax Sales 2007
Alberta Tax Sales 2006
Alberta Tax Sales 2005
Alberta Tax Sales 2004

Nova Scotia Tax Sale Properties

New Brunswick Tax Sale Properties

USA:
New York Tax Sale Properties
Texas Tax Sale Properties

Sheriff's Sales
Ontario Sheriff Sales Properties

Ontario Tax Sale Research

Listing by Date
Listing by Counties, Listing by Districts, Listing by Regions, Listing by Single Tier

* My Properties *


Latest Discussion Posts

>> Re: Re: Interesting Risks on Upcoming Trent Hills Tax Sale by mountainman
>> Re: Interesting Risks on Upcoming Trent Hills Tax Sale by Frank
>> Interesting Risks on Upcoming Trent Hills Tax Sale by Dave2
>> Re: Municipality delays deed transfer more then a month by Dave2
>> Re: Municipality delays deed transfer more then a month by mountainman
>> Municipality delays deed transfer more then a month by bee
>> 138 Lakeshore Dr., Wheatley by Ernestbidder
>> Re: MAGNETAWAN by bee
>> Re: MAGNETAWAN by matt
>> Re: MAGNETAWAN by bee
>> Re: MAGNETAWAN by matt
>> MAGNETAWAN by bee
>> Re: I hope this goes to tax sale by Frank
>> Re: I hope this goes to tax sale by bee
>> Re: Re: Use common sense to avoid tax sale problem properties. by Dave2
>> Re: Use common sense to avoid tax sale problem properties. by Frank
>> Re: Re: Becareful of the Queen, she has a big lien by mountainman
>> Re: Becareful of the Queen, she has a big lien by pjdd
>> Re: Becareful of the Queen, she has a big lien by bee
>> Use common sense to avoid tax sale problem properties. by Dave2
>> Re: Re: The impact of the Toronto Real Estate Board Supreme Court Decision This Week. by mountainman
>> Re: The impact of the Toronto Real Estate Board Supreme Court Decision This Week. by link
>> The impact of the Toronto Real Estate Board Supreme Court Decision This Week. by Dave2
>> Re: Re: I hope this goes to tax sale by Dave2
>> Re: I hope this goes to tax sale by Frank

Visit the tax sale properties discussion boards


Articles

>> How To Buy Foreclosed Homes For A Bargain Price by Susan Dean
>> The Ins and Outs of Bank Foreclosures by John Nazareno
>> What You Need To Know About Real Estate Foreclosures by Michael Contaro
>> Investing In Tax Foreclosed Properties by James Ficarro
>> How To Make Money Investing In Real Estate Foreclosures by Matt Shupe
>> The Pros And Cons To Buying Foreclosed Properties by Tim Lee
>> What is Premium for Tax Lien Certificates? by Joanne Musa
>> Dying To Buy A Home? Dealing With Bad Credit by Connie Barker
>> Native rights claimed in tax sale lawsuit by IAN FAIRCLOUGH Valley Bureau
>> Escaping The Affects Of Tax Liens On Real Estate Investors by David Gass

View more tax sale property articles


Other

Tax Sale Property Books
Kindle

Tax Sale Property Links


Follow @taxsalesont



Privacy Policy