by David Ellis
on Tuesday, August 20th, 2013 at 6:01pm.
In addition to the old adage, "Location, location, location," most real estate investing tips boil down to one common theme. Buy low, and sell high. Buying foreclosed homes is a great way to do just that. And by buying foreclosed homes in beautiful St George, Utah, with its red rock deserts, sandstone canyons, and excellent golf courses, you can effectively cover all the core tenets of real estate purchasing in one fell swoop.
A foreclosure is when the holder of a property lien is forced to terminate the lien before the expected date, most often due to a failure to make payments by the borrower. This action makes it possible for the lien holder to then place the property back on the market, with the intention of recouping whatever losses they may have incurred because of the early termination of the lien.
So what does that mean to investors interested in buying foreclosed homes? It usually means a drastically discounted price, well below the market value, which allows investors to buy low. Then, when it comes time to sell the property, the investor will ideally be able to command market value for the property, and effectively sell high.
St George foreclosures typically run between 50% and 65% of market values, which is a great investment to begin with, but there may, in fact, be another opportunity for even bigger savings. By searching for pre-foreclosures, or homes which are in default but not yet officially in foreclosure, investors can offer borrowers and lien holders alike a chance to avoid the costly and precarious situation of foreclosure, and often negotiate an even lower price in the process.
Want to know how to find foreclosures and pre-foreclosures in St George? The best way is to enlist the help of your real estate agent, who has access to all the most current listings. There are also some sites that let you view foreclosed properties in a given area, but many of them require a signup and membership. Either avenue should yield a wealth of choices and opportunities to turn your investment into a substantial profit.