Buying at a Foreclosure Auction
Many first time and fledgling investors see a foreclosure as the holy grail of real estate investing and real estate in new jersey. It sounds too good to be true; buy a home at an extremely low price that a bank has foreclosed on, and sell it high at an extreme profit. But purchasing at a foreclosure auction is not for the new investor or for the faint at heart. They require a lot of preparation, thought and capital before money can be made at these auctions.
First, you’ll need to inspect the properties up for sale. Never buy a property sight unseen or without an inspection. You could end up saddled with a property that there is no way that you can sell again. Do your homework before the auction, so that you know what you’re getting yourself into and going into the investment with both eyes open.
Make sure that you have the available capital long before the auction ever takes place. Most real estate in new jersey foreclosure auctions require you to have a percentage of the home price or a set amount in a cashier’s check at the actual auction. Find out what amount you need beforehand, and make sure the check is there with you, otherwise the sale will be forfeited. The balance of the amount is due in the thirty days, so have your financing arranged for so that you can close quickly and easily.