If a person goes around his neighborhood looking for a property that he can buy, one would prefer a brand new property that is in the market. There is no reason not to like this especially that is new. One thing to remember with a choice like this is that you can expect a high price. You should take time to check everything about the property, and if the market value is indeed the price they are asking. Rushing on this can be a bad idea. You can continue your search though and maybe find something else.
Pre-foreclosure properties can be a worthwhile investment as well. If you can devote a significant amount of time to searching for an investment property, you should look into these properties. It is one with owners who are late on paying their mortgage payments, putting themselves in a position that they potentially losing their home. All lenders are happy to give you lists of possible properties, and you can alternatively market the fact that you will purchase homes for hard cash. Look for the person who is currently paying the load payment and bid a few thousands above their payoff, if it fits this market value.
This will turn out to be a win-win situation and excellent bargain for you since they most likely will not owe what the actual value of the property is on their loan. Also, do not forget to have an inspection professional inspect the house before closing a deal on a house. If you purchase without an expert’s evaluation of the house, you could be facing the cost for major repairs. Handling unforeseen repairs is usually expensive plus some could possibly be so big that you will probably have to find some other place to live while repairs are being done.