Forclosed Homes Today

How would you like to make $12,000 to $18,000 per year? What about an extra $3,000 to $6,000 per month? Many people will answer and resounding YES to this question. Why?? Because we all need and want money!

The question is…How can I make and extra income with such high numbers? The answer, as always is with real estate. More specifically with forclosed property. With foreclosures, you can turn a quick profit by purchasing the property, rehabbing it and selling it within a short amount of time. Thus you will not be strapped with many mortgage payments and when you do sell the property, it will net a profit and will recoup the entire cost of the rehabilitation, plus what you paid in mortgage payments.

For each forclosed property that you anticipate purchasing for the purpose of rehabilitating it, you should expect to receive a minimum of $15,000 in profit. If there isn’t this much profit on that property, I would suggest you move on to a new property. Now days there are a lot of forclosed homes and you have many to pick from. You need to make sure you can realize at least 15 thousand in profit so you can cover your own costs of fixing it along with any mortgage payments. Also, within that figure you should expect to get at least 20% or more in profit for yourself! Some houses will make an enormous amout of money because there is not that much to fix and as a result, you put more back into your pocket when you sell it. The key is buying the foreclosed property at a low price, fixing it for a minimal amount and then selling it for more money that you have put into it. This is the key because your profit is earned when you buy the property not when it’s sold.

I am sure you are now asking yourself, “How can I make a profit BEFORE I sell the forclosed property? Simple…You need a formula to show you your expected profit.

1. How much does the house cost (A)

2. How much will it cost to renovate the property (B)

3. How much can I expect to sell the house for after the renovations are complete (C)

C – (A + B) = Your Expected Profit

Once you know the answer to this question, you will then know how much money you are going to get when you sell the rehabilitated home. There is the question of how much it will cost to renovate the property, but that question is solved easily by writing down what you want to fix on a note pad and then going to your local home supply store like Home Depot or Lowes and getting the prices on the materials you will need to make the repair. If you don’t want to do the job yourself, then call a local handyman or contractor and have them give you an estimate on how much they will charge to make the repair. Note: Don’t give away your money. YOU purchase the material yourself. Handymen and contractors will mark up the cost of supplies by at least 5%. By purchasing the materials yourself you will save a lot on each repair job. 5% tends to add up if you have 4 or more jobs to complete.

The answer as to how much you can expect to sell the house for will be located in the county appraiser office. You can call them on the phone and give the address of the forclosed property you want to purchase. They will be able to tell you what that home is expected to sell for according to the property value. There you have it. A good way to make an extra income in your spare time. You don’t need to do the work yourself if you don’t want. Just hire out what you need done, but don’t exceed your expected profit.