How to Make Money in Real Estate with Foreclosures

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By Mitestarossa
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Foreclosures are available in every state.

There are many was to make money in Real Estate. At the present time the economy is perfect for buying properties, especially foreclosures, but it is not the right time to sell.

Difficulty: Easy

Instructions

Step 1

EVALUATE THE MARKET IN YOUR AREA - There are many good real estate markets are are diamonds in the rough so to speak. You have probably heard that you can buy homes for one dollar in Detroit, Michigan, but have you heard that there are also cheap houses in Cleveland, Ohio. Usually the catch is that you still have to pay the realtor fees and you have to repair the house. Even with these costs, you may be able to get into a house for less than $5,000. At that amount, you may be able to purchase several.
Step 2

BUY PROPERTIES FOR RENTALS - If you have $30,000 dollars to invest and each property costs approximately $5,000, you can purchase 6 houses without mortgages. Your monthly expenses will be low because without a mortgage, you will only have to pay taxes, insurance, and maintenance. Possibly a property manager fee if you want to go that route.
Step 3

FIX THEM UP - Most properties will need some repairs. Make sure you have the property fully inspected prior to the close of escrow. Try to get all of your repairs done within one month so that you can get a tenant in the unit immediately.
Step 4

RENT THEM - Research the rental values in your area and price your rental slightly less. Require a 1 year lease. It is better to have a long term tenant at a lower amount than someone that cannot afford a higher amount.