Minneapolis Minnesota Real Estate Blog

Downtown Minneapolis Condos: Top 3 Mistakes Investors Make when Buying Foreclosures

Foreclosures have the reputation of being very profitable investments for real estate investors. While that can be true, they can also be very dangerous investments where you can lose a lot of money. In this article, weíll go 3 of the most common pitfalls Downtown Minneapolis Condos investors make, so you can avoid these mistakes if you decide to invest in foreclosures.

Pitfall #1 All Foreclosures are Good Deals

This simply isnít true. Foreclosures are often in terrible condition. For that reason, banks and the government are often willing to provide major discounts on the propertyís price. Even then, however, the property may not be a great investment.

It ís only beginning investors that think all foreclosures are good deals. Experienced investors in Downtown Minneapolis Condos know that just like anything else, finding a good foreclosure property takes time, expertise and research.

Pitfall #2 Jumping into Fixer Uppers

We've all heard of people who've made millions buying shambled houses, fixing them and then flipping them. While this can be a very profitable model, it also has its pitfalls.

The biggest pitfall is beginning investors who jump in to the fixer market without the expertise to back it up. Unless you can predict how much your repairs will cost, how much you can sell the property for and then work your way backwards to what the selling price must be in order to be profitable, then you're not ready for a fixer upper.

There are many profitable deals that don't require the level of expertise that a fixer does. For a beginning investor, it ís usually better to start with those deals.

Pitfall #3 Not Performing Good Research

Good research is a key component to being profitable in the foreclosure market. You must know how much your property can sell for in the market. You should know what the trends in the area are, including community projects, new buildings that are being built, crime rates, etc.

You should also be sure to get a home inspection. If you're bidding on multiple properties at an auction, it ís important that you actually step foot in all the properties you plan on bidding on before you bid on them.

These are 3 of the more common pitfalls that investors tend to fall into. By avoiding these pitfalls, you'll set yourself ahead of most beginning foreclosure investors in Downtown Minneapolis Condos.

There is a lot of free information available to you about buying, selling or investing in  Minneapolis Condos or Minneapolis Lofts. For complete information about the Downtown Minneapolis condo market including current condos lofts for sale, values, and more please visit the most complete website online www.LivingInDowntownMinneapolis.com dedicated to everything Downtown Minneapolis Condos.  Contact Mike Weiland & Elke Stephan of The Weiland Group of Keller Williams with any of your real estate or mortgage related questions by filling out the form below.

P.S. Free weekly list of Downtown Minneapolis Condos including private listings and foreclosures in the most popular locations call the 24 Hour Recorded Information Hotline Now for details...1-888-391-9039 Ext. 126 or visit www.LivingInDowntownMinneapolis.com.