How can I buy foreclosed properties and give three reasons that it is not the right thing to do?

Question

Do I have to bid or pay commission to the Realtor or have a good down payment?

Answer 1

I flipped houses for years, made a ton of money, then went bankrupt.

I started out in the business by buying and reading a ton of books, must have read and studied 20 books on the matter before I bought the first house. Flipping/landlording is not a business you want to get into and learn the hard way. You'll go bankrupt, ruin your credit, deplete your savings.

I did well when I stuck to the advice that those books gave me. I got nearly endless strategies for success, and like a balanced portfolio in stocks, having more diversified strategies leads to greater opportunites for success....kind of like football, you can gain yards rushing, but you're more likely to win the game if you pass, and if you pass, you can throw play action/slot/ hail mary, etc...the more options, the morely likely your victory.

Yes, a realtor will make a commission when you buy homes, but, you will pay that commission on any listed home you buy, so get a realtor, but shop around for one you trust. Some are dumb, some are untrustworthy, some are irresponsible, and some are fantastic. More or less interview a few before you find one you're really comfortable with, this is your financial future on the line, choose an employee you trust.

The way realty commissions work is (we'll pick a round number) 10% commission paid to a realty company for selling a home. If its listed by Pickens realtor Sandy Homeseller, and you contact and hire Sandy as your realtor, she will collect the full 10%. If you contact and hire Smurfy Realty's Papa Helper as your agent, and he helps you negotiate a price with sandy, then they will end up splitting the commission 5% each way.

The tricky thing about realtors is they get a commission on how much you pay, so it is in their interest to have you pay as much as possible. Some realtors though want to help you get the best price/the best deal and will help you save, some will say "thats a great house, you better offer the asking price or more" just to get a quick sale and a higher commission.

Stay away from yahoo answers with your questions, because we all know not everyone here is an expert and a lot of people talk out there asses...Don't get screwed over because of it.

I did well when I followed the strategies I was comfortable with in the book, and I went bankrupt when I felt invincible and used strategies that they universally disapproved of, but I thought were easier.

Don't buy the carlton sheets program, and don't buy any books that the cover says how to make millions fast....you can make millions, but if they say fast steer clear of that book. Real estate is lucrative and well worth it. A while after my bankruptcy is discharged, I'll get back at it and use the lessons in the books. Study, study, study....please, study up!!!!!

Answer 2

You can buy foreclosed properties through a real estate agent. Find one that is knowledgable in foreclosures. They will get paid by the listing agent.

Reasons why not to buy:
1. Not necessary a great deal or it might be overpriced.
2. Usually sold "as is"
3. You might need to put work into it.

Find a good agent and tell him you want under valued property, regardless if it is in foreclosure/foreclosed on or not.

Regards

Answer 3

Badbadboy is 200% correct. I gave him a thumbs up (tried to give two, but the computer won't let me).

Answer 4

these guys will walk you through the process, http://www.choicefinance.net/foreclosure-listings.htm