2007-01-20 16:11:41 · 3 answers · asked by BLESSUS 1 in Business & Finance ➔ Renting & Real Estate
Don't be overly optimistic. Don't be too elaborate in your rehab, but don't use the really cheap stuff either. A good contractor and professionals are essential, even if you are handy. Don't delude yourself time is money. The longer you own it the less money you make.
Expect delays and problems, plan for it. Be prepared to pay the mortgage longer than you think.
The key to foreclosure investing is to "buy right" it's not just the reselling part that matters. You should aim for 70% of the after-repaired-value (ARV) as your max out of pocket expense (purchase, rehab, selling cost and holding cost).
Email me if you have more questions.
2007-01-20 17:33:32 · answer #1 · answered by LadyB!™ 4 · 0⤊ 0⤋
Foreclosures is not a guarantee of a good deal. Learn to spot good real estate investment independent of if the property is in foreclosure.
The savvy investors know that you get your best deals when you solve the seller's problems. When the seller needs out more than they need the top price. Some of the time that can be a seller in foreclosure. Some of the time a seller in foreclosure is in denial so they are actually some of the most difficult to deal with.
I have historically focused on the properties that the banks sell after foreclosure. Banks are not emotional. Banks are not losing their home.
Foreclosures work out well for some. They can be a big time investment.
2007-01-21 05:01:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes money can be made in buying foreclosed properties.
Don't over spend. But do a first rate job.
Just remember that it will cost more & take longer than you think.
The more things that you can do your self the better off you will be.
Start small & work up to bigger projects.
2007-01-20 16:24:11 · answer #3 · answered by Floyd B 5 · 1⤊ 0⤋