Invest in Foreclosure

To Flip or Not to Flip – How to Invest in a Foreclosure

Sometimes the best real estate investment in Dallas (or anywhere else) is found in a foreclosure. As you most definitely already know, after the housing crisis of ’08, we saw a lot more foreclosures than we’d seen in previous years. Since then, the number of foreclosures has been steadily declining. However, there are still quite a few each month, and they still provide a lot of opportunities for those looking at foreclosure real estate investing in Dallas.

So, if you’re interested in a foreclosure sale, you probably already know that you need to do your research beforehand. If you don’t, you could purchase a property at what seems like a very low rate, only to find out that it has several liens on it that you’re now responsible for. It’s a rookie mistake, but it can quickly turn what seems like the best real estate investment in Dallas into a money pit and a nightmare.

The real question, though, when you’re thinking about foreclosure real estate investing in Dallas, is whether you should make quick repairs to the property and flip it at a small profit or keep it as a longer-term investment.

Both of these options involve time and effort on your part. If you’re going to flip a house, you need to have relationships with contractors and people who can bring it up to code and up to snuff to sell it. Then, if you want to continue making money, you’ll have to find another good foreclosure deal and do the same thing, all over again. It can become a full-time job very quickly.

If you’re going to keep the house as a long-term investment, you need to bring it up to code and make it attractive to tenants. Once you’ve done this and gotten paying tenants on site, you’ll just need to do routine maintenance and repairs when necessary. If you hire a property management company, this route can become very hands-off in very little time.