One of the reasons many real estate investors are looking into bank foreclosure houses for their investments is because of the allure of the flip. A flip is the process of buying a piece of real estate, making upgrades and repairs to this well priced home. Then, the home is sold on the market for a higher price. Most flips need to happen quickly to keep costs down and for many investors the balance of profit and costs pressures them. Can bank foreclosure houses still work well for the real estate investor even as the housing market falters?
Bank foreclosure houses are designed to be profit makers in many ways. For example, many banks will sell these homes for far below their property value because they need to get the cash back to reinvest. They are willing to take the losses more so than the typical home seller is. Nevertheless, banks are not willing to hand over these properties. They too have to make as much money on the process, or at least cut their costs as much as possible during the process.