6 Pros of Buying a Foreclosed Home
Posted by Techyscouts | Posted on 12/22/2022
Becoming a real estate investor requires some quick and smart thinking. You may initially balk at certain purchases, such as foreclosed homes, but you shouldn’t avoid these opportunities entirely. One West LA conservatorship real estate broker Michael Millea recommends that investors seriously consider a variety of real estate properties as part of their portfolio. Contact Michael Millea for investment advice regarding these different types of properties.
Pros of Buying Foreclosed Property
There are several pros to buying a foreclosed property.
- You can buy these properties for pennies on the dollar.
- Some foreclosed properties go to auction and can be gained for even less than purchasing them outright.
- Most foreclosed properties do not require a ton of remodeling to flip.
- You can turn foreclosed properties into rentals, and make constant monthly income.
- Banks and city or county governments do not want to hold onto these properties and will sell them as soon as a reasonable offer is made.
- Sometimes a foreclosure is made based solely on unpaid property taxes. Paying property taxes is often less than the down payment of buying regular properties.
The ROI (i.e., return on investment) on foreclosed properties will return what you paid to secure these properties in a year or two, based on the resale price or monthly rent collected. They are a very smart investment indeed.
Consulting a Trust Real Estate Agent
There are also conservatorship and trust properties for sale in Los Angeles. These properties are tricky to secure, but they are equally as profitable as foreclosures. The conservators or trust holders want to sell off the properties as a means of providing additional income to the trusts they created or to pad the bank accounts of their conservatees. To buy and invest in these properties, you need to consult a professional West LA conservatorship real estate broker or a trust real estate agent in Los Angeles.
The Difference Between a Conservatorship Property and a Trust Property
Foreclosed properties are the most easily acquired properties because the prior owners no longer have a say in the sale of their former homes or commercial properties. The properties have been taken over by either the banks and lenders or by the city and county that is owed back property taxes.
The conservatorship property is one of the most difficult to secure as the owner of the property is still alive but under the care of a relative. The owner may be sick, elderly, or mentally unfit to manage their assets. The court assigns a conservator, and you have to work with the conservator to buy these properties.
Trust properties are somewhat complicated but not nearly as complicated as conservatorship properties. Trusts hold assets with the intent of giving the assets to an heir. A living trust grants property to the heir while the owner is still alive, but a regular trust places stipulations on when the assets and real estate may be turned over to the heir.
The trustee acts as the middle person to negotiate the sale of a property. He or she works with you the investor and with the owner and the person for whom the property is held in trust. Due to the nature of these complications, you should hire Michael Millea to help you obtain these properties.