Even the best neighborhoods can be hit hard by recession. Foreclosed houses line a number of streets, and climbing out of this problem often falls to motivated real estate investors.
These budding professionals might not be interested in hundreds of properties - instead, they could have their eyes set on only one or two. However, people like this are responsible for revitalizing many older neighborhoods across the U.S., converging on auctions and grabbing affordable deal after affordable deal.
The final goal? Fix up and sell, and turn those foreclosed houses into lived-in, loved homes for the next person interested in buying or renting.
Anyone can become a real estate investor
In Buffalo, N.Y., the rows of foreclosures have given way to potential property owners and eager real estate investors, according to The New York Times. The city is home to more than 4,300 vacant lots and houses, all up for sale to these prospective professionals.
For example, Bernice Randle and Jason Wilson were at their second auction, and during their first they left with two deals - one, a vacant lot valued at $500, and the other, a three hundred year old house for only $66,000. These two people are considered "micro-developers," buying up these derelict properties, rehabbing and reselling for a profit, the news source noted. In addition, their - and their colleagues - efforts have helped restore old neighborhoods swallowed up by the foreclosure process.
With these combined efforts, previously unattractive parts of Buffalo have turned the corner. Joseph Galvin, owner of a handful of homes close to one another, has been one hand helping spruce up bank owned properties across the city.
"At first it was necessity - I just wanted a place to live," Galvin told The New York Times. "There were a lot of drugs and prostitutes and criminal elements. We'd call the police, and they'd arrest someone, and then there'd be someone else to take their place. What I decided to do was to buy these houses and renovate them and try and save a neighborhood that was in decline."
Courthouse Retrieval System can help real estate investors gain the knowledge they need to succeed. In-depth collections of mortgage records, property data and much more can be the perfect compliment to any business strategy.
Plan ahead for hidden costs
Real estate investors can get excited when they see the low price tag of foreclosed houses up for auction. However, these expenses come with added problems, and budding professionals should be cautious before diving into any additional home.
Older houses often bring more complications, according to Bankrate.com. Even so, this isn't stopping prospective buyers from clamoring to get their hands on historic properties.
"Obviously, the charm and history are attractive, but there's also a very strong lifestyle component to these historic neighborhoods," John Randolph, an associate broker for Virginia-based Long & Foster, told the news source. "What's old is new again. This is the revival of the town center in urban planning; the original town center."
While not all older homes are considered historic, some are bound by certain guidelines and other restrictions. These often come into play during renovations, but the overall rule to keep in mind is the preservation of the home's character. Therefore, restrictions are often confined to the exterior of the property, with owners having more room to work on the inside.
In order to prepare, real estate investors should do their research ahead of time, Bankrate.com explained. Each individual address could have its own guidelines, but the payoff could be great. Once a historic home is fixed up, it could fetch a high price on the market.