Mark Gallagher

In case you haven't heard, there are a lot of "foreclosures" on the market for sale these days. The media does a good job of really portraying the housing industry in a poor light. I believe most people stay very far away from "foreclosures" because they don't really know much about them. So I'm here to educate you more about these homes that are more appropriately called "bank-owned" - foreclosure is the legal process whereas the home is truely owned by the bank. Most people are familiar with calling these properties foreclosures, so we will stick with that term for this discusison.

3 myths I hear about bank-owned homes are:

1. Foreclosures are trashed and in disrepair
2. You can not have a home inspection on a foreclosure
3. It is hard or impossible to get financing on a foreclosure

Mark Gallagher

Coldwell Banker Heritage Real Estate

412 West Broad Street

Bethlehem, PA 18018

215-490-4851 - DIRECT

610-691-6666 – OFFICE

Mark.Gallagher@CBHeritagemail.com

Realtor Serving Lehigh and Northampton Counties including: Bethlehem, Allentown, Saucon Valley, Hellertown, Lower Saucon, Upper Saucon, Coopersburg, Whitehall, Coplay, Northampton Borough, North Whitehall, South Whitehall, Emmaus, Macungie

• Looking to search the Lehigh Valley MLS? Contact me, and I will set up searches delivered to your email!
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• Buying your first home? Really confused? Let me guide you throuh the process!
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Mark Gallagher

Coldwell Banker Heritage Real Estate

412 West Broad Street

Bethlehem, PA 18018

215-490-4851 - DIRECT

610-691-6666 - OFFICE

Realtor Serving Lehigh and Northampton Counties including: Bethlehem, Allentown, Saucon Valley, Hellertown, Lower Saucon, Upper Saucon, Coopersburg, Whitehall, Coplay, Northampton Borough, North Whitehall, South Whitehall, Emmaus, Macungie

Recently, many people I have been talking to are interested in becoming a real estate investor for the first time. Everywhere it seems people are saying we are in a buyer's market. I for one think this is very true! If you are able to purchase a home now, and the rent covers whatever your debt service may be, it can usually be a great idea. The best way to think of this would be as a tangible 401K.

When I had a 401K account, I did not like the fact that someone else had control over my money! Not to mention the fees associated with it and my returns were very modest. I discovered real estate investing, and fell in love. Not only could I see my investments, I could touch them as well. I was in complete control of my money and the returns it could make.

Where do you start? The first thing you will want to determine is if you would like to purchased a distressed home or a turn-key home.

Buying a distressed home is a good way to great a great deal, but you will have to pour time, energy, and money into getting the repairs taken care of. Additionally, the town where you buy the property will most likely come out and inspect the home prior to you being allowed to have renters in the home. If you have low funds to get started, you can consider a rehab loan to bring the property up to code.

When buying a turn-key home, you could buy the property on Day 1, and rent it out on Day 2. You will produce rental income much faster but you will have paid a much higher premium for the home. If you are planning to hold the home for a long period of time, and have sufficient funds for a down payment, this is a good way to acquire your first rental property.

Your second step after determining which road to travel, would be to line up financing if you need it. If you are short on funds, you'll want to speak with someone about getting prequalified for a rehab loan. If you have funds to make a nice down payment, you will want to speak with a conventional mortgage loan officer to discuss your options.

Once you are pre-approved for the type of funding you are going to need, contact a Realtor experienced in investment properties. The ideal agent should have a portfolio themselves. They will be able to educate you on what average rental rates are, as well as where to find tenants and screening them properly. These agents will also have contacts that will prove vital to your success such as contractors. Most agents would be happy to work with a first-time investor and show them how to get their feet wet!

Mark Gallagher

Coldwell Banker Heritage Real Estate

412 West Broad Street

Bethlehem, PA 18018

215-490-4851 - DIRECT

610-691-6666 - OFFICE

Serving Lehigh and Northampton Counties including Bethlehem, Allentown, Saucon Valley, Hellertown, Lower Saucon, Upper Saucon, Coopersburg, Whitehall, Coplay, Northampton Borough, North Whitehall, South Whitehall, Emmaus, Macungie