2006-12-28 02:52:55 · 8 answers · asked by shepherd3989 1 in Business & Finance ➔ Renting & Real Estate
I have been doing this for a long long time and must caution you to be very careful. In today's market around the nation many foreclosures aren't what they used to be. Foreclosure homes have always had some issues as they often are missing appliances and needing repairs to some extent. The current activity at most trustees sales and levels of investor activity while homes are in pre-foreclosure almost insure that ones that aren't bought at the trustees sale are bad deals. Many bad deals are also made at the trustees sale by inexperienced people. Not to dash your hopes I must also point out that there are still opportunities available. One just needs to be careful and know their resale market. Those that buy flippers will want a lower than retail price. To sell to the retail market the buyers will want the home to pass an inspection and an appraisal. The better you become at pricing and assessing renovation costs the greater your chances for being successful.
2006-12-28 04:43:26 · answer #1 · answered by Kevin H 4 · 0⤊ 0⤋
A good friend of mine recently bought a foreclosed home that she will eventually flip.
The one lesson I learned from her ordeal is that patience is definitely a virtue when closing the deal. It seemed like she was ALWAYS going to her agent's office to drop off paperwork. As soon as they'd say "okay, this is all we need," they'd need something else.
Also, try to get inside the house before you buy it. She wasn't able to and as a result, didn't know that she'd have to completely re-sheetrock almost the whole house, buy new carpet, and put a new roof on. She luckily was smart enough to pad the mortgage with some money for repairs, but she'll also eventually have to replace the wall furnace before she sells the house.
But for all the troubles, she bought a $75,000 home for $27,000 and the profit will be enough to help her finish her degree, which is what she was looking for.
Good luck!
2006-12-28 03:04:14 · answer #2 · answered by tulsasfynestdyme 3 · 1⤊ 0⤋
I would advise you to contact a Realtor in your area who works with investors in buying and flipping houses. Every market is different. They would have the most current value's of what properties actually sell for in the area in repaired or fixed up condition. You can use that to calculate how much you can actually sell the property for after you fix it. Many people claim to know just as much as a Realtor but only a Realtor is licensed, educated & insured to assist you. To get the most current for-closure list for free go to HUD's actual for-closure link here http://hud1.towerauction.net/LA.htm
You cannot buy or bid on one of these without a Realtor because HUD will only sell threw a HUD approved broker. If you would like a referral to a HUD approved broker in your area please feel free to contact me.
My service and any HUD approved broker's service is free to buyers.
Thanks,
Michael
2007-01-02 17:27:12 · answer #3 · answered by Bestbank Real Estate 3 · 0⤊ 0⤋
real estate market is a bit shakey right now
now is probably not a good time to start, unless you have a large amount of money available to be able to sit on the place til it sells
you will also need to know a lot about home repair so when you are looking for the right place to purchase the cost of improvements don't eat up all the profit you hope to make
2006-12-28 03:06:51 · answer #4 · answered by Aviator1013 4 · 1⤊ 0⤋
I have done some research on this matter and you may want to contact a CPA or a Tax Attorney for help. Most will consult for free. Also you may want to speak with a Realtor in your area that handles these type transactions. I posted a question prior to yours looking for someone to purchase my home and property and I will contract to buy back at a profit if interested. Clean deal for all! Thanks and I wish you luck.
Randy
2006-12-28 03:03:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Most houses in foreclosure are either in real bad shape or in crime infested neighborhoods. I would not put my money in a bad neighborhood where I would not be able to sell... And if in bad state of disrepair...maybe not worth it. For some one who's beginning, I recommend finding a house in need of cosmetics in a good neighborhood, even if purchase price is higher, and go from there.. good luck.
2006-12-28 03:20:33 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Be careful. My dad does this, is stuck with 3 houses that won't sell, asking less than appraisal value.. be very careful.
2007-01-02 09:06:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋
yes check out this database
http://calihomes.blogspot.com
2006-12-28 13:13:58 · answer #8 · answered by hkjlh h 1 · 0⤊ 0⤋