According to ATTOM, in the first quarter of 2024, there were 95,349 U.S. properties with a foreclosure filing. Of these properties, 1,084 are in Louisiana, including New Orleans.
While foreclosures have a negative connotation, they present unique income and investment opportunities for savvy property investors.
To that end, the real estate experts at PMI New Orleans created this guide on the perks and pros of buying foreclosed homes. Keep reading to discover how investing in Big Easy's distressed property market can prove lucrative.
Louisiana Foreclosures Explained
As NOLO explains, before a lender in Louisiana (including New Orleans) can file for foreclosure, a mortgage borrower must be 120 days past due on their loan payments. The lender can then file a petition in court, and the case undergoes executory proceedings. If the court favors the lender, it authorizes the seizure and sale of the foreclosed property.
So, properties in foreclosure aren't always old or are in severe disrepair; some are relatively new. It's just that their previous owners could no longer pay their mortgage, which forced lenders to seize the property and sell it to recover some of their losses.
Perks of Investing in New Orleans Foreclosures
Foreclosures make for smart New Orleans property investments because, in many cases, their sellers sell them at discounted prices. The closing process is also relatively quick, as is the turnover to the new owner.
Discounted Sales Price
In many foreclosure sales, the sellers simply want to recoup some of the money they've already invested in the property. They often no longer aim to profit from the sale, so they list the foreclosure homes for sale with lower asking prices.
Now, one of the most common investment and real estate strategies is to buy when prices are low and sell when prices are high. So, you can buy a distressed property for less than what it's otherwise worth. You can then renovate it and sell it for a profit or add it to your real estate portfolio of rental property investments.
Quick Closing Process
Sellers are often in a hurry since they can no longer profit from foreclosed properties. So, they're unlikely to back out of the deal at the last minute. You, the buyer, can then benefit from a quicker closing process.
Achieve ROI Sooner
The quick closing process means you'll have your name on their deeds sooner. The sooner you legitimately own the properties, the sooner you can start doing what it takes to profit from them.
For example, if you plan to sell the property, you can fix and renovate it immediately and then sell it for a profit. Or, if you want to turn it into a long-term income generator, have it rented out by a professional property management company.
Turn Foreclosures Into Investments
With their lower sales prices and quick closing process, foreclosures in New Orleans, LA, can be great investments.
So, why not partner with our full-service property management and real estate brokerage company, PMI New Orleans? We're a proud franchisee of PMI, a larger national company with nearly 20 years of service history and manages over $5 billion of assets. With our expertise and the backing of PMI, we can help you make the right investment choices.
Speak with us today, and we'll happily discuss how we can help enhance your portfolio.
