Also how do I go about buying foreclosed property?
2006-09-07 03:32:31 · 11 answers · asked by roccon 1 in Business & Finance ➔ Renting & Real Estate
No, and No - Anyone can buy as many homes as long as they can pay for them. Here in my state (OK) you do not have to be a realtor to buy foreclosed properties you just have to follow the rules of the bank or state that is selling the home. Having a realtor's license might save you money in the long run but it might not also. Most of the rental homes you buy should be from a private seller because they are more likely to help you finance the home and you have no 6% fee.
2006-09-07 03:34:25 · answer #1 · answered by sooners83 4 · 1⤊ 0⤋
No, you don't need a realtor's license. I own 57 rental units (two fourplexes, a 20-unit building and a 29-unit building), and I don't have a realtor's license.
Depending on where you are, you may want to join your local multihousing association. This is a group of landlords that meet periodically and discuss rental trends, have educational seminars on landlord/tenant law, etc. Definitely worth the money.
You should contact your lending institution about buying foreclosed property. My only advice regarding that would be to be careful - both about having a very intensive inspection, and about the geographic area the building is in. The old adage about location, location, location is incredibly true with rental property. My 20-unit building is in a "transitional" part of town - the rent is half what I get for similar units in a good part of town, and I have pretty big turnover and less-than-ideal tenants in that building. I bought it in March, betting that the area is going to continue to improve - but in the meantime, it is one big pain in the backside, and a financial drain you wouldn't believe.
I also work on the side (a "real" job), and finance my buildings on 15 year mortgages. The mortgage payments are big, but are covered by the incoming rent. There is no profit on the buildings for the life of the mortgage - you're just meeting expenses - but when the mortgage is paid off, after you pay for utilities and maintenance it's all pure profit, and at that point I will retire and live off the rental properties. Given that that means retirement at a pretty young age, it's a nice plan. So far, working out very well.
After you get your first building or two (depending on how big they are) and build some equity in them, you can leverage that equity to buy more/nicer/bigger buildings.
Have fun! Feel free to e-mail me if you have more questions. I love talking rental property!
2006-09-07 03:44:18 · answer #2 · answered by Vicki D 3 · 0⤊ 0⤋
No need to have a realtor's license. Also, I would personally discourage it unless you REALLy want to be one. As a realtor in a transaction you can be more liable for certain mishaps than other individuals, just on the basis that you are supposed to "know better" and would be considered to be a real estate professional in the eyes of the law.
Property that has been foreclosed upon is available for sale through the same channels as any other property, generally listed by agents, or by private sellers.
2006-09-07 11:07:54 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Would you consider delaying your plan? Professional investors are careful in choosing each investment that would be near or immediately cash flow positive. With overpriced housing market, that is not possbile.
For example, it costs $500,000 to $550,000 to buy a two bedroom units in Sunnyvale California. Mortgage monthly payment with nothing down is $3500 to $4000 a month with 7% APR. The rent one can collect from such unit would be $2000 a month. Therefore, for each unit you buy, you would lose $1500 a month.
* We assume tax benefits would cancel out with tax and maintenance fee. Please consult your CPA.
**If you have large down payement, the rate may be lowered.
Another important factor to consider, home price may not appreciate as much anymore. In most area of the U.S., housing price stopped going up as inventory continues to build up. It is normal to see a correction as a boom that lasted for several years.
If you are investing new money in to real estate, this may not be a good time as the potential return on investment is small compare to the high risk of lower home price.
If you are doing a side way move, meaning you are selling one to buy another one, then it is acceptable.
Nothing is absolute, but housing market is very likely undergoing a correction and this is only the beginning. Some say this would be a soft landing (0 to 10%). Some say a big crashing is coming (10 to 20%).
2006-09-07 09:14:17 · answer #4 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
You can work with a Realtor and invest the best way to do this is to by forclosers as cash deals and then sell them after you get them in better shape. if you buy them and finance them you have to wait at least 6mths to sell them because you have to have some equity in the home b4 your lender will let you sell without penalty. Hope this helped ya a little if ya want to know anything else e-mail me.
2006-09-07 04:34:37 · answer #5 · answered by lspalletta 2 · 0⤊ 1⤋
No it's just like you would be buying a house to live in...
Forclosed properties are usually listed in the newspaper or legal papers
2006-09-07 03:38:34 · answer #6 · answered by dumpllin 5 · 1⤊ 0⤋
No.... But you might want to look into getting a real estate lisn., it will help you with transactions and you will be able to possible make some extra money along the way. Good Luck
2006-09-07 03:38:05 · answer #7 · answered by DANIEL D 2 · 1⤊ 0⤋
No way...Want more info contact me by email or check ot my link..
http://www.myspace.com/mariaentrepreneur
Real Estate Investor
2006-09-07 12:49:54 · answer #8 · answered by innovativeinvest@sbcglobal.net 2 · 0⤊ 0⤋
No. Contact banks and ask for their foreclosure list.
2006-09-08 02:42:22 · answer #9 · answered by Barbwired 7 · 0⤊ 0⤋
Nope, just money.
Join realty tract's web site.
2006-09-07 03:34:53 · answer #10 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋