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6. If you are going to sell property after rehabilitating it, ask your REALTOR to research similar properties in neighborhood to ascertain market price.
7. Keep copious records for tax deductions. Any expenses related to purchase, repair, or maintenance of property may qualify. Meticulous records are key to a profitable real estate venture.
8. The title you receive after purchasing a distressed or foreclosed property is a special warranty deed rather than a general warranty deed. Some buyers are alarmed by this, but there is no need to worry. The purchase of title insurance protects buyer. Each lender purchases insurance to protect loan as well. Titling insurance should be obtained by property purchaser. It is always offered by closing agent. Consider using an attorney instead of a titling company as your closing agent. An attorney is only $50-75 more than a titling company. A real estate attorney can remedy any situation that may arise. Therefore, they are more efficient representatives on time sensitive foreclosure properties. 9. Foreclosure properties require special addendums and special contracts by individual bank and HUD office (where applicable).
10. Foreclosure properties are potentially most profitable, but require most attention to detail. A REALTOR experienced in foreclosure deals is highly desirable because paperwork must be in order to submit a proper bid, and timeliness is critical.
Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property as part of her business. Her husband Joe is a contractor who collaborates with her on rehabilitation of properties. She has helped numerous clients invest in and make money on property investments in Southeastern Virginia.