Naples Florida Foreclosure Listings - Important Tips on Buying Your First Foreclosed Property in Naples Florida by Naples Real Estate & Investing Expert Benjamin Sovacool

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May 27, 2009, by Benjamin Sovacool in Short Sales

Naples Florida Foreclosure Listings Information Series

Buying foreclosed properties is getting more popular and more profitable every day. There are dozens of foreclosed properties hitting the Naples Florida market every day. These properties can be both gold mines and land mines. In this article, we'll go over several simple tips to help ensure that your first foreclosure purchase is a successful one.

Opt for a Low-Repair Property for Your First Deal

We've all heard about people who make thousands of dollars buying fixer foreclosures and fixing them. The reality is, that doing such a deal requires a high degree of expertise.

Do you know how to fix a leaking roof? Can you estimate how much it would cost to replace an entire shed? Can you estimate how much the repairs will cost and compare it to your selling price in the end?

Although you can make a lot of money doing fixers in Naples Florida, you can also make a lot of money just by buying foreclosed properties, doing minor cosmetic repairs and selling them again. For your first Naples foreclosure deal, look for houses that don't require much work so you can get some experience under your belt.

Research the Markets Surrounding Naples Florida Real Estate Market

There are generally three reasons you'd buy a foreclosure in Naples Florida: To rent out, to sell or to live in. If you're buying to repair and rent out or sell, then market research is absolutely essential.

If you're buying to rent, it's important to know what other properties in the Naples Florida real estate area are renting for. It's also important to know what the vacancy rates are. Based on these numbers, you can accurately predict what your cashflow will be like.

If you're buying to sell, it's important to know what you can expect to sell your property for once your repairs are completed.

You should know these numbers before you make your purchase. Remember that with any real estate investment in Naples Florida, the profit is made on the buy end, not the sell end. You must know how much your property is worth or how much you can rent it out for before you can make a profitable investment.

These tips will help you avoid some of the biggest pitfalls beginning investors tend to fall into with their first investments. Foreclosures can be a very lucrative business, but it also has its dangers.

There is a lot of free information available to you about buying, selling or investing in Naples Florida foreclosures. For complete information about the Naples Florida real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Naples Florida real estate at TaylorDonovan.com Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. You can contact me via the form below.

Naples Real Estate Expert,

Benjamin Sovacool