In May 2024 alone, one in every 4,320 housing units in the United States had a foreclosure filing, bringing the total to 32,621 properties. That's a slight uptick of 3% from the previous month.
While foreclosures are bad news for mortgage borrowers, they're an opportunity for investors. You can purchase these distressed properties and flip or rent them out for profit.
But is buying foreclosed homes in Sugar Hill, GA, worth it?
This guide to foreclosed properties as investments will break it down for you, so read on.
The Foreclosure Process Explained
As a non-judicial foreclosure state, Georgia allows lenders to foreclose on properties without filing a suit against borrowers. However, it almost always starts when borrowers fail to repay their mortgage debt.
So, just because properties are in foreclosure doesn't mean they're in severe disrepair; they can still be in optimal condition. It's just that borrowers can no longer pay their mortgage debt, forcing lenders to repossess the property to recoup some of their losses.
The Perks of Investing in Foreclosures
Discounted prices, quick closing, and faster turnover are the top perks of buying foreclosed homes. Here's a quick overview of each and what they could mean for you as a real estate investor.
Lower Selling Prices
In foreclosure scenarios, lenders (or borrowers) no longer aim to make a profit but instead just get some of their money back as soon as possible. That's why you'll see many foreclosed properties with prices considerably marked down.
That can be great news for investors in Sugar Hill, GA, whose median home value is around $330,100. That's nearly $50,000 more than the national median! If you do your due diligence, you can find and buy a fantastic property for much less than what you'd otherwise pay for it if it weren't in foreclosure.
Quick Closing
When navigating foreclosures, lenders are often in a hurry to sell because they no longer profit from these properties. In these cases, they're less likely to back out at the last minute since their priority is to get rid of the property. So, it won't be long until you become the owner of an investment property.
Sell or Rent Sooner
Since the closing process for foreclosures often occurs faster, you'll own the properties sooner. The sooner you do, the sooner you can generate real estate income.
Once you're their owner, you can start fixing and flipping them immediately. Alternatively, you can begin renting them out with the help of a property management company. From there, it's just a matter of time until your rental income rolls in.
Make Foreclosure Investments Work for You
With their discounted rates and quick closing process, foreclosures in Sugar Hill, GA, could be lucrative investments. You can buy them for less than their actual value, flip and sell them, or fix and rent them out for a profit.
At PMI Northeast Atlanta, we can help you make the right investment decisions. We're a full-service real estate asset management and brokerage service company with a network of over 15 franchise locations around Atlanta, GA. You can count on us to help you buy, sell, or rent out your properties.
So, connect with us today to get started with our free property valuation!
