Advantages & Disadvantages of Working in the Pre-Foreclosure Market
What Are the Benefits of Working in the Pre-Foreclosure Market?
There's no doubt about it-the pre-foreclosure market offers many advantages to the careful investor.
First of all, you can buy properties at a deep discount. Discounts can range from 20% to over 40% of market value. This means you can buy a property, turn around and sell it at under-market value, and still make a great profit.
Second, you can structure deals that will cost you very little money or, in some cases, no money at all. This doesn't mean you'll be able to operate in the market without cash reserves. That's just plain foolish. However, it does mean you can get creative and legally use other people's money to finance your deals.
Third, you can buy properties quickly without all the rigamarole that goes on with conventional transactions. This not only means that you don't get buried in paperwork, but you're also able to turn relatively quick profits while moving on to the next deal.
