Foreclosures have the reputation of being very profitable investments for real estate investors. While that can be true, they can also be very dangerous investments where you can lose a lot of money. In this article, weíll go 3 of the most common pitfalls Spartanburg, South Carolina investors make, so you can avoid these mistakes if you decide to invest in foreclosures.

Pitfall #1 All Foreclosures are Good Deals

This simply isnít true. Foreclosures are often in terrible condition. For that reason, banks and the government are often willing to provide major discounts on the propertyís price. Even then, however, the property may not be a great investment.

Itís only beginning investors that think all foreclosures are good deals. Experienced investors know that just like anything else, finding a good foreclosure property takes time, expertise and research.

Pitfall #2 Jumping into Fixer Uppers

Weíve all heard of people whoíve made millions buying shambled houses, fixing them and then ìflippingî them. While this can be a very profitable model, it also has its pitfalls.

The biggest pitfall is beginning investors who jump in to the fixer market without the expertise to back it up. Unless you can predict how much your repairs will cost, how much you can sell the property for and then work your way backwards to what the selling price must be in order to be profitable, then youíre not ready for a fixer upper.

There are many profitable deals that donít require the level of expertise that a fixer does. For a beginning investor, itís usually better to start with those deals.

Pitfall #3 Not Performing Good Research

Good research is a key component to being profitable in the foreclosure market. You must know how much your property can sell for in the market. You should know what the trends in the area are, including community projects, new buildings that are being built, crime rates, etc.

You should also be sure to get a home inspection. If youíre bidding on multiple properties at an auction, it is important that you actually step foot in all the properties you plan on bidding on before you bid on them.

These are 3 of the more common pitfalls that Spartanburg, South Carolina investors tend to fall into. By avoiding these pitfalls, youíll set yourself ahead of most beginning foreclosure investors in Spartanburg, South Carolina

There is a lot of free information available to you about buying, selling or investing in Spartanburg, South Carolina real estate. For complete information about the Spartanburg, South Carolina real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Spartanburg, South Carolina real estate. So please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 864-505-6316 or email me at jim@jimwoodbroker.com.

Another specialty we have is OWNER FINANCING...MOST SELLERS THAT WE WORK WITH WANT A DOWN PAYMENT OF AT LEAST $10,000. If you own a home and have been transferred and need to purchase before yours is sold
you may need some creative financing...Jim Wood is probably the most creative real estate broker in North Carolina and South Carolina. For more information and a list of homes with owner financing go to http://carolinadream.com

We specialize in HUD Owned Homes, Fannie Mae Owned Homes and all foreclosures in North Carolina and South Carolina.   http://repohousing.com

Call Jim Wood, Realtor (over 33 years experience) for everything you need to know about real estate in Spartanburg, Greenville and Upstate SC go to http://spartanburgscforeclosures.com
 

Call Jim today @ 864-542-2725 jim@jimwoodbroker.com  **HUD OWNED HOME SPECIALIST**