New York Foreclosed Homes for Sale – The Quick Cash Strategy

Published on October 21st, 2009.

There are two main strategies used by investors who buy New York foreclosed homes for sale. One is the quick cash strategy, the other is long terms wealth creation. The quick cash strategy involves buying property and flipping it, as well as buying property and wholesaling it. Wholesaling involves buying foreclosure property and selling it for a profit, whereas flipping involves buying and rehabbing a property and then selling it. For those of you who don’t understand the term rehabbing, it is simple, it means fixing.

Many investors prefer the quick cash methods of wholesaling and rehabbing because they don’t like the idea of playing landlord. However, never dismiss this out of hand, because it is a way to create long-terms and lasting wealth. However if it is a quick buck you are after in the short term, then wholesaling and rehabbing it is.

While many people find wholesaling the less troublesome of the two quick cash methods, many don’t like the idea. Essentially you buy a property in its present state of repair and sell it exactly “as is” for a profit. No mess, no fuss, just buy it, add a reasonable profit which will still allow you to get rid of it quickly and let it go and you have flipped a property for you profit.

Then there is rehabbing, this is probably for the more creative investor, the profits are better, but holding costs could be incurred if the property doesn’t sell quickly. In these circumstances, you identify the property you want, make sure it doesn’t require more than just cosmetic repairs, get these done quickly and efficiently, make the property look nice and sell it.

This is one of the more creatively rewarding ways of quick cash methods of buying and of selling property. Many foreclosed homes for sale in New York are in need of maintenance as the foreclosure process in this state takes such a long time. In some instances it can take up to 24 months. During that time the property may have become run-down, vandalized or fallen a victim to theft or owners revenge.

Some rehabbers like it when a house has been stripped, they can see the potential in the property and it generally means they will make better profits. They are able to negotiate better discounts with the lender in respect of the repairs required, and can often obtain repair work and appliances at discount prices. They have learned to use friends in the contractor business for repair work. Know that replacing windows and renewing a paint job and clearing a garden can add thousands of dollars worth of value to a property. So they see past the dirty carpets, bad paint job and broken windows, to the potential for profits.

They understand about small inexpensive touches like replacing light bulbs, tightening and oiling door hinges and giving the house a good cleaning. Even placing a few potted flowers on the porch makes a difference to the people who see potential in a property.

Filled under foreclosed homes.