legacyIf you are looking for a unique way to invest your money that does not involve stock markets and mutual funds, purchasing quality real estate in South Jersey can be a great way to make money with a more hands on approach.

Successfully navigating the real estate market can be tricky, especially if you have never purchased property for rental or resale before. If the idea of flipping foreclosure real estate in South Jersey sounds like an exciting option, check out a few of these tips so you are as prepared as possible before you make your initial investment.

What not to do when looking for South Jersey real estate

Purchasing property for sale in South Jersey has potential to be a great investment opportunity. You can make the odds even more in your favor, by avoiding a few of the most common pitfalls new investors make.

Do not strike out on your own: A common mistake that new investors make is trying to get into foreclosed homes without the help of a professional. Purchasing foreclosed and/or bank owned homes is always at least a little more complicated than buying a traditional home. Extra paperwork, a longer wait and special financial requirements can make these transactions tricky for newbies.

Do not forget an inspection: You should always have an inspection done on any South Jersey real estate you decide to purchase, and foreclosure homes for sale in South Jersey are no exception. In fact, it may be even more important to have inspections done on these homes. Bank owned homes likely already have had an inspection by the bank. Foreclosed homes probably have not. Even if the home appears to be in good condition, always hire a professional to inspect the home so you know what you are purchasing. Unseen damage can add up quickly. You do not want to squander all of your potential earnings on nasty repairs.

Do not think short term: In most cases, a foreclosed home will likely decline in value before it increases. You can use this time to make repairs and prepare your reliable south jersey real estate for resale or rental. In addition, most foreclosed homes require some, if not a lot, of repairs. Think about the repairs needed and possibly declining values when making an offer on your investment property.

Do not look everywhere: One of the most common mistakes new investors make is searching all over for properties. It may surprise you to know that there can be many foreclosed properties on the market. Instead of searching all over the state, pick one area and focus your efforts there. You will have more success because you can narrow your options to homes you are really interested in.

How to be more successful in South Jersey Real Estate

If you think that you understand the basics of investing in South Jersey real estate, check out these tips to learn what you can do to make your investment more successful.

Tour the home: Before you make an offer on any South Jersey homes for sale, always walk through the property. Reviewing inspection reports and photos can be helpful, but it does not give you the full picture. Check out the neighborhood, look at the surrounding houses and get a real feel for the home. Many experts recommend purchasing the worst house on the street of a nice neighborhood because you have a better chance of increasing the value of the home. If you do not check out the neighborhood, how will you know?

Check out other homes: When you find a home that you want to consider as an investment check local listing or homes of similar size and location. Gauging how much homes of a similar style (maybe in better condition) are selling for will give you an idea of a range you can expect your investment property to be worth. This can help you make more educated offer on the home.

Make a competitive bid: Purchasing foreclosed homes for sale in south jersey is a competitive business. Bidding too high on a foreclosed property could leave you running on fumes when the time for repairs come. However, if you bid too low, you may not land the property you love. Take time to look at other property, study the house and determine how much you will need to get the property in top shape. Then make a fair bid. Make a reasonable offer you can afford, without breaking the bank.

Get preapproved for financing: One of the most important things you can do before investing is real estate is to have your financial ducks in a row before you hit the market. Preapproval gives you an idea for how much house you can afford and it shows banks you are prepared for the investment. Once foreclosures are approved they often more pretty fast. You may even have to prove you have the financial backing for a home before you can bid on it.

Investing in real estate can be a profitable option for individuals willing to put in a little extra work. Though the purchase of these properties can be a little more difficult, working with the best South Jersey realtor can make the process easier for you. Call us today and let us help you find the perfect investment property.