As a real estate investor, you know that you’ll make more money on a flip when you can buy as low as possible. In many cases, that means shopping the foreclosures.
But how can you be sure you’re getting the best deal possible without wasting time throwing low-ball offers that no bank will accept?
Choose the Right Day
Making an offer on a foreclosure that just hit the market is no way to score a bargain. Every bank has its own guidelines on when they’ll make a price drop—or accept a lower offer than list—but there are certainly some good windows of opportunity to find a bargain if you know when to act.
The trick is to strike when the bank is ready to negotiate but before other investors realize that fact. Most banks wait until 90 days have elapsed before they’ll budge, but others may review their unsold listings every 21 or 30 days. If you’re looking for a price break, consider making an offer on day 22, 31 or 91 after listing.
Striking fast doesn’t mean going in blind. As soon as you see a foreclosure listing that interests you, quickly do your research to determine if it would be a sound investment. If it is, you’ll be ready to make an offer the moment you see a price drop.
Write a Clean Offer
There’s always the risk that you’ll be up against a competing offer. Banks want to liquidate their foreclosures quickly. A clean, cash offer will always carry the most weight.
Do You Need a Hard Money Loan in Atlanta?
If you need a hard money loan because you have your eye on a great investment property, call us at 404-814-1644 or get in touch with us online. We’ll be happy to discuss your options and help you get the funding you need.