Hoping some of you that know more about real estate then I do can give me an idea what is going on, with this:
The situation is: In the newspaper, there is a company that sold two houses tonight at auction. I attended one, the house appraised for $550k, I walked through it and that seems about right, approx. 6k square feet, nice details, needs a little work. The auction was at the home bidding started at $311k. The guy that won the auction won it at 380k. I wasn't willing to bid because I don't know these guys, and how this company is pulling this off. I talked to another guy he said the house was up on the market for $500, sold for 460k a month or so ago. So how does this company buy houses then lose on the auction. The catch you have to finance with them (seller carry) for at least 5 years. The interest rates where 20k down, 14%, if you put down 100k you receive 6%, fixed on the balance for 30 years fixed. Am I missing something. Please ask questions? Thoughts?
2006-08-19
18:05:05
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5 answers
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asked by
Sirius77
2
in
Renting & Real Estate