Sunday, March 21, 2010

Arizona Foreclosure Opportunities For The New Real Estate Investor

By Jack Bennington

The Arizona foreclosure market has a lot of properties available. This is because people bought up land because they saw the population growing and because they saw jobs building up. But like many other places around the country the economy has caused the housing market to suffer.

When people fail to pay their house payment for three straight months in Arizona the lender can file for foreclosure. This is where the lender takes the property and sells it to get back the money it loaned to the borrower who has failed to pay back the loan.

Then after three months if the loan has not been paid off then the lender can have the sheriff evict the occupants of the house and then sell the house at auction to recover the money the lender loaned on the house. If you are interested in getting into the real estate investment business this might be a time you can learn how to deal in foreclosed properties.

You can take classes on how to buy and sell REO's. This is the term for bank owned properties. It stands for real estate owned.

There are many experienced investors who teach others how to get into the real estate investment business. You will have to know how to make offers to the banks for the REO. You have to know the calculations in how to bid so that you can make a profit when you sell the house on the retail market or to another real estate investor.

Perhaps you have heard of public auctions put on by various auction companies. This is where you can go and bid on many REO properties where other investors are bidding on the same properties. You do need to have cash available to make a bid on these houses. But you should also see the houses before you bid on them.

You also need to have a maximum amount that you would bid on any one property. You do not want to get caught up in the emotion of the bidding process only to find that you will not make any money on the deal.

There are many great deals in the foreclosure market. But you have to have money to take advantage of the deals.

You can purchase houses for thirty cents or less on the market but you still need to come up with the down payment. If you can sell the property for fifty cents on the dollar you will make a good profit. So you want to have access to the money to get the deal going.

If you are starting out you can try a hard money lender for the money to get started. Although this lender loans money at high rates of interest and for only short periods of time you might still consider this type of loan if you can sell the property quickly and for a profit. Arizona Foreclosure Provides New Investors Opportunities in the real estate market.

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