Financial Information
Financing Options
After you have conducted all of your research and found possible properties, it’s time to choose which ones you want to invest in and how you’re going to purchase them. Obtaining financing for foreclosure properties, Bank-Owned (REO) properties and properties headed to foreclosure can be a bit tricky. Some lenders will not finance mortgages for properties that are in foreclosure. As an investor, it’s important to know what options are available to you and which ones will give you most efficient results. Read more …
How to Complete a Comparative Market Analysis (CMA)
What is a Comparative Market Analysis (CMA)?
A CMA is a comparison of similar homes in the area that are on the market or have been sold recently (preferably within the past year). With some practice, conducting your own CMAs will be an easy way to accurately determine a reasonable asking price for a property so it will sell in a short amount of time. Read more …
Understanding Market Value
As you contemplate buying and selling a foreclosure property, you’ll need to have a keen understanding of market value - not just in general, but specifically in the neighborhood where you’re investing and particularly for the property you’re looking to pursue. Market value is the value of real estate property and is determined by the current market along with many factors regarding the home. It is greatly affected by how many buyers are looking for houses in the area and how many houses are available.
Using Appraisals to Determine Market Value
Understanding Appraisals and Market Value
In the US, appraisals are performed to a certain standard of value (e.g. — foreclosure value, fair market value, distressed sale value, investment value). The most commonly used definition of value is Market Value. While the Uniform Standards of Professional Appraisal Practice (USPAP) does not define Market Value, it provides general guidance for how Market Value should be defined: Read more …