Some people believe that foreclosed or distressed properties are all rundown homes in neighborhoods that nobody wants to live in. According to Larry Polhill, however, this is completely untrue. In fact, investors can now enjoy fantastic foreclosure properties that are true bargains, being homes in really good condition. This is because the foreclosure problem wasn’t one that only affected the poor, it affected everybody. While the crisis is now truly behind us, the Securities Exchange Commission (SEC) has reported that there continue to be a lot of people struggling, and particularly those with more expensive properties.
President Larry Polhill on Buying Foreclosed Properties Properly
Having been the Director of APFC, Larry Polhill has a lot of knowledge on how to make clever investments on foreclosed properties. He understands how important it is to be very careful when considering a foreclosed properly. Most of these properties are offered “as is”, which means you have to be very careful before buying one. Hence, he believes the following elements are of particular importance:
It is vital that you are aware of how much you can afford. When you have clarity on your budget, you will instantly make your search a lot more effective as well. This is because you can filter the properties you are looking at by excluding those above your budget. Setting a budget is down to understanding your personal financial situation, your job security, your existing debts, and your credit scores. You must also be aware of how much you can use as a down payment.
- The Style of the Home
Thinking about style is very important. You may be after a single unit home, or perhaps you would prefer multi-units. You also have to consider the architectural style of the property. Some are of higher value than others, but that is mainly down to fashion. You do, however, have to think about the number of bedrooms you would like, how much lawn and garden space you want, an how many bathrooms should be included.
- The Neighborhood
Those purchasing foreclosed properties usually do so as an investment, although some look for personal use. Either way, it is very important that you consider the neighborhood. There is no point owning a property in a neighborhood that nobody wants to live in, after all. This is true whether you want to live in it, rent it out, or flip it to another investor. The neighborhood must be convenient and safe, or you’re making a bad investment.
Last but not least, you have to consider the hazards. If we have learned anything in 2017 of the various natural disasters that have happened, is that it is vital to be realistic about possible hazards. A hurricane, tornado, earthquake, flood, or even volcanic eruption can happen, and you must be aware of what is most likely to happen, and how likely it is that it will happen. After all, this will also affect your insurance.