Real Estate

Foreclosure Real Estate in Colorado Springs and Beyond

Foreclosures can be a great investment in Colorado Springs real estate and beyond.  In every transaction as an investment professional, your goal should be to purchase homes or real estate significantly below market value so your investment has equity the day you close and, if you choose, can turn a profit for you based on the rental income opportunity.  This is most likely to happen in a short sale situation or through foreclosures.  It just happens that the state of Colorado has a significant number of these real estate properties available at the moment. Rumor has it (you didn't hear that here), quite a few more are expected in the 4th quarter of 2007 and extending significantly into 2008.

So, you might ask, who holds foreclosures that I can look into and how did they get them?

1. Banks repossess real estate and homes for sale in Colorado Springs that they have loaned funds against and the owners are not paying their mortgage, and have not been for quite a few months.  These properties are referred to as real estate owned (REOs) in the real estate community.  Most large banks have a real estate owned division that are completely dedicated to the resale of these homes, if you are serious about gaining access to these types of opportunities, you should meet with people working inside the REO division of the bank and express to them your desire for specific property types in specific neighborhoods, cities or zip codes.  By making this introduction, you are giving yourself the opportunity to be one fo the first people to know when a property is taken into possession by the bank.  This can be a tremendous advantage to a real estate investor.

2. Every year, the federal government is forced to forecloase on 100s and even thousands of real estate properties in Colorado Springs and beyond.  The federal government must do this because of entities such as the Veterans Administration (VA), Housing and Urban Development (HUD), FANNIE MAE and Federal Depository Insurance Corporation (FDIC).  The little known item about these particular foreclosures is that the government, in some cases, will allow buyers to take possession of these homes with little or no down payment and, in certain circumstances, even provide you with repair funding.

With foreclosures, it is important to note that not all of these homes or real estate properties are going to be bargains.  Banks, in particular, are in the business world and are not always going to list a property for huged discounts under what a home is worth, particularly when a piece of real estate may have been 100% financed and the loan was defaulted upon less than a year after it was sold.  Do not fall into the trap of thinking that all foreclosed properties are going to be a homes for sale steal fest, they aren't, and that type of thinking could end you up on the foreclosure list next!

So, your next question may then be.  Ok, I realize that all foreclosures are not a great deal, so how do I find the best deals here?

Unfortunately, there is no easy answer to this problem other than to say hard work and study pay off; as is the case with most investment decisions.  Yes, you will always hear about so and so who got lucky, but it is just that, LUCK.  The reality is that to obtain a great deal is all about knowledge and gaining access to as much of it as you possibly can.  The Internet can be a great place to start, but certainly do not finish there or you could be asking for big trouble.

Here are some question that you might ask yourself concerning a foreclosed real estate property:
How much did it sell for in the past?  What condition is the property in today?  How long has this home been on the market?  What is the price of this property now that it is in the foreclosure process?  What offer can reasonably be made to get the best possible "low ball" price?  Is the neighborhood where this home is located on the way up or on the way down?  How much money will it take to repair this home?

The purpose here is not to discourage you, but to open your eyes up to a reality that people far to often overlook because of TV shows or late night infomercials.  There is no such thing as a simple, non hard working method of gaining millions in real estate by glancing at a newspaper once a month or attending a home auction over the weekend without any preparation, etc. I recently attended a home auction in Denver, Colorado a few weeks back. Let's just say that I noticed more than one person bidding on homes that did not do their homework until the night before this thing....

That being said, hard work in this particular area of real estate can certainly create amazing opportunities for you to make extraordinary income.

If you are ever looking for potential real estate investment in Colorado Springs. Please consider contacting a Colorado Springs REALTOR. To have a buyer's agent represent you in the state of Colorado is FREE to you as a buyer. Be sure to remember that the next time you are in the market.  You don't always have to go straight to the seller alone to get a great deal.  In addition, a REALTOR can be a valuable part of your investment team.