New Western Acquisitions Realty

To invest in Texas Investment real estate, investors must ideally follow these five steps.

Step 1: At the onset, you must get in touch with one of the agents at New Western Acquisitions. Discuss your investment goals and expectations with him and he will draft a winning plan for your investment.

Step2: The next step is to locate the appropriate property. With a seasoned professional by your side, you can easily find a property of your choice catering to your requirements.

Step 3: Financing investment in foreclosures may be a tricky task. For most properties are sold at a cash-on-sale basis. You need to have your finances ready. If you are not a cash-rich investor, the agents at New Western Acquisitions educate you about the available financing options.

Step 4: The next is to rehabilitate the property. The challenging thing for new investors is to find the right person to conduct the repairs and rehab efficiently. The real estate agents at New Western Acquisitions lead you to the right tradesmen to undertake this work.

Step 5: You can choose any exit strategy for your investment. Either you flip it for a quick profit or rent it out. You can sell the property when the market is ripe or enjoy the monthly rental income in the meanwhile.

By following these steps with the agents at New Western Acquisitions, you are bound to see success in your real estate investment.

Foreclosures have been on the rise since the 2008 recession. Business downfalls, unpaid loans and unemployment have resulted in many homeowners unable to stay current on their mortgages.   Some areas had over inflated prices during the development of the subdivision, and after the recession in 2008, many homeowners found themselves upside down on their mortgages.  So far so, that it was impossible to ever recoup their investment.  Many neighbors simply gave up and walked away vs continuing to pay on an inflated mortgage. Those who did try to stick it out were left in neighborhoods  littered with foreclosed houses, further devaluing their property. 

When borrowers are unable to pay their monthly installments, the bank forecloses the property and takes possession of the same. However, banks are not keen on possessing the property. They are only interested in recovering their loan amount.

The catch in purchasing foreclosures is “finance”.  Banks and lenders are already burdened with foreclosures and unpaid loans, they are reluctant to finance foreclosure investments. Therefore, foreclosures are often sold on a  cash on sale basis. Does this mean that investors who are not cash-rich cannot invest in Houston investment homes?

The truth :

Lenders and bankers prefer to sell foreclosed properties to buyers who have their  finance plan in place. But, if you are not a cash-rich investor, then there are  other financing options. Just remember that the bank selling the property will not provide a loan on the same. You have other options such as:

•    Hard money loans or private money: Hard money loans are provided by private money lenders who do not belong to any institution.

•    Group financing: Small investors can make groups and arrange finance to acquire the property. They can divide the profits later.

•    Refinancing: The owner of the foreclosed property can opt for a refinancing option from lenders and shift the loan to a new lender.

Investing in foreclosures is indeed alluring. And if you are stepping back only because of finance, you can now choose any of the options listed above.