Miami, FL offers investors a large opportunity to find foreclosure properties at auctions and bank owned REO’s as well. According to Realtytrac, there are approximately 9,043 properties in default right now with 2,156 homes being offered at foreclosure auction sales. If you are looking for bank owned REO’s, there are 5,213 homes available. With numbers like that, it is hard not to find an investment property that meets your needs.
The best way to find an auction property is to look online and register at some of the auction sites so you get alerts when new homes come up. You might want to work with a local Realtor to find short sale pre-foreclosure homes or REO’s. Going down to the local courthouse is also a way to find a
list of homeowners who have been sent default notices so you can contact them prior to the homes going to foreclosure. Newspaper ads and theInernet are other good sources as well as driving around Miami neighborhoods where you are interested in purchasing properties. There are bank foreclosure signs on the properties. If you see vacant homes, you might also want to look up the property ownership information in order to contact the owner to see if they want to sell the home. Chances are the home is in default and heading to foreclosure.
What to Be Aware of!
Purchasing foreclosure properties at auctions in the Miami area is a terrific way to find cheap bargain homes at reduced prices. Auctions homes are sold at deep discounts. REO’s and short sale pre-foreclose properties are sold below market values as well. The auction homes may require a bit more rehabbing so make sure you always get an inspection to avoid any surprises after the closing if your bid is accepted. Homes are sold as is and buyers are responsible for making all repairs after closing. There are no warranties. Also, auction homes do not come with title insurance so it is important to have a title company conduct a title search to make sure there are no liens. If there are liens, the new buyer is expected to pay them off so you want to make sure you figure in the costs when you bid. Also, with a foreclosure auction home you must evict the former owner or any tenant living at the property. REO’s and short sales are delivered vacant and many of the properties are in much better condition than foreclosure auction homes because owners or tenants have been living at the premises taking care of the properties.
If you are able to rehab the home yourself, you will save a bundle of cash and make your profit margin higher. Many investors are rehabbing their foreclosure bargains and renting them out. Rentals are always in demand in the Miami area especially seasonal rentals. The good thing about purchasing foreclosure properties is you know you have a property with built in equity so when property prices start rising again, you will receive a high rate of return on your investment when you decide to sell it. Otherwise, you can hold onto it and build up your long term wealth.
Foreclosures Popular Among First Time Home Buyers and Investors
Investing in Miami foreclosure properties makes a lot of sense. With a large selection of inventory to choose from in just about every neighborhood and price range, Miami foreclosures are quite popular. In fact, you may end up in a bidding war because you are not only competing with other investors you are competing with first time home buyers. First time home buyers know that they can find a foreclosure home at a price that they might not otherwise be able to afford if the home were not a foreclosure.
Owning a home in Miami is a great investment. There are tax credit abatements and other incentives to encourage investors and buyers to purchase properties in Florida and the Miami area, including low interest loans. Miami is such a beautiful seaside community with so much to offer residents including water sports, culture, entertainment and nightlife, fabulous shopping and gourmet dining. This multi-cultural area is close to the University of Miami and other nearby area universities and colleges. There are sporting events, championship golf courses, boating and other recreational activities making it a premier place to live, work and play. Retirees, baby boomers, snow birds and visitors from all over the world come here with hopes of finding the perfect vacation, second home or permanent residence. With home so affordable, now is a perfect time to invest in Miami real estate. So if
you are thinking about buying a Miami foreclosure auction home, a bank owned REO or a short sale pre-foreclosure property, you have plenty of choices to choose from ranging from beautiful oceanfront, canal or Intracoastal properties to gated communities, country club and golf communities, active adult communities and so much more.
