One in every 2,638 New Jersey homes will face foreclosure. Having the third highest foreclosure rate in the US means landlords have a wide range of investment opportunities with distressed properties.
Read on to learn the ins and outs of investing in foreclosures and why it's a great way to diversify your portfolio!
Why Invest in Distressed Properties in New Brunswick?
A foreclosed home has been taken from the owner as payment for a debt owed. Many of them were forfeited because the homeowner stopped making mortgage payments. Others may be seized when put up as collateral for a loan that the owner never paid back.
Investing in properties after foreclosures has several benefits for landlords, including:
- Lower prices (since distressed properties are frequently sold under market value)
- Better financing options
- More room for negotiation with sellers/banks/lenders
- No prior inspections before buying the property
- Quick deal closing within a usual escrow period
- An already-vacant property that makes the sale process simple
Since foreclosed properties go for well below their market price, they're ideal for investors who want to flip real estate. Purchasing foreclosures, fixing them up, and selling them at a higher price is a lucrative way to make more money.
Foreclosures also are in good shape. Rental property owners can buy the house below market price and charge rent based on the market value, which means a higher profit.
Finding Foreclosures for Investment
Many investors find foreclosures through local government resources. Some common ones include:
- Service New Brunswick (SNB), which has a list of properties that come up for tax sale
- The Government of New Brunswick Surplus Property List
- The New Brunswick Royal Gazette, which offers auction listings
You also may use online platforms like:
- Realtor.com
- Zillow
- Multiple Listing Service by local agents
Once you find a foreclosed property that you want to buy, the sale process is the same as any other investment. You go through a realtor and make the purchase after negotiating terms and conditions.
How Can Property Management Professionals Help?
Finding great investment opportunities independently can be a challenge. Even with government and online resources, it will be tough to navigate all available properties. If you're specifically looking to buy a foreclosed home or commercial building, it may be even more challenging to find suitable real estate.
Spending weeks scouring potential investments isn't just inefficient and stressful. It also is unlikely to lead to good results. You won't know how to identify the best deals without professional help.
Luckily, expert New Brunswick property managers:
- Know how to help you meet specific goals (like gaining passive income from rent or turning a profit by flipping the house)
- Understand the market comprehensively
- Have professional-grade tools for identifying investment opportunities
- Know what features and amenities make a property more desirable
- Can estimate the ROI of potential investments and choose the most lucrative
You'll get the most bang for your buck and can start making money with minimal stress.
Find Great Real Estate Investments With Expert Help
Now that you know why investing in foreclosures is a great idea, it's time to find distressed properties in New Brunswick.
PMI Central New Jersey is committed to identifying great investments that will earn you a great return. Get a free rental analysis to see what foreclosed properties in the area are worth!
