how would someone go about making a living off of buying foreclosures and fixing them up and sellign them?

Question

what steps would they have to take to start this?

Answer 1

The absolute best way to make a living, is to write a book or create a program, and sell it on an infomercial on late night TV! Those people are the only people making any real and lawful money.

Or be a lawyer, and charge for your services to save the poor souls who try to make money buying foreclosures and get in way over their head!

I am an attorney and a former investor of distressed properties. Buying property in foreclosure, is tricky and risky business. A foreclosure is a legal proceeding and you should be well versed in everyones rights before you try to "make your killing." The borrower has rights, the lender has rights, and buyer of the distressed property has rights. Better know them all, before you spend a lot of money you can not afford to lose.

Trying to explain in this limited forum how to do that is impossible. There are too many State variables that could dramatically affect the advise. Beware of any quick lessons. If you want a quick lesson, research the web for mortgage and investor fraud. Kansas City is a hot bed for it. Most of the "investors" who made a killing are in the federal pen, or their bunk is being warmed up for the expected arrival!

Answer 2

I hate to be the bearer of bad news but it is almost imposible to make a living buying and selling foreclosures.
First of all, you need to have great credit built up and a banker or mortgage broker who you have built a reputation with to start. No one will give you a loan to buy a foreclosed home unless you have a tract record of buying and selling homes and making money or you are rich. Foreclosed homes are the hardest to buy since the bank is generally losing money and they can not afford to take a chance on losing more if the deal falls through or if you do not make your payments.

Plus, most foreclosed homes need repairs and many need lots of repairs and upgrading. You have to have a nest egg of money to fix it up, make the payments while it sits vacant, and while it sits on the market to be sold. You have to be ready to be able to make the payments with no money coming in for about two years. This is a precaution in case you can not flip it right away. Many foreclosed homes are less desirable. So who will buy this home from you when they could have gotten it at foreclosure. Investers will not buy from you when they can get it cheaper so you are depending on a family that wants to live there.And the market is soft right now. Not a good time to sell. So it may sit on the market too.
I have done many fix it and flip it homes. I only make money because I am sitting in the middle of two states with a hot market. I can hold the property, make the payments, afford the repairs, and can wait two years or more before I have to sell it. I can wait out a down market. Can you?
Repairs can be costly. Even if you do them yourself the materials are expensive and the labor even more expensive. I just completed a remodel job of two bathrooms and it cost me $15,000 and that was with a friend doing the work at his going rate of $35-$40 per hour. It would have been higher if I would have hired a contractor. And the job took 2 1/2 months to gut the bathrooms and start over.

Remember, foreclosures are not always a good deal. The bank is not going to sell for less than the loan that is owed. And many of these new foreclosures are at the higher market value that has been present the last 4 years. Many people are loosing their homes to foreclosure because they paid too much for them in a hot market. But now the bank must get back their money and so they have to sell them at the esculated prices.
It is far better to buy a home that someone must sell at a loss or for a low price in a great neighborhood that needs cosmetic work only. Rent it out to make the payments and then sell when the market is hot again. But do not quit your job thinking you can live off the money. Be smart and be wise, do your research.

Answer 3

Key is to buy house before it goes to foreclosure. It is hard, but if you can get a good broker, then it is possible. Usually if house is about to go foreclosures, seller might be willing to sell the house cheap. If house is in foreclosure, and it has investment value, then chance are it is already taken. There are lot of experienced people out there already doing this for living. And you will be at the bottom and will not have anything really worth buying.

Answer 4

The first thing to do is to familiarize yourself with the restrictions for buying foreclosures in your state. Many states have laws designed to protect the homeowner from losing their home to a swift talking investor. As a result, investors need to be very clear what the restrictions are.

Here is some additional info. Hope this helps.

Answer 5

The first thing you want to do is apply for a tax i.d. and start a partnership/corporation or something so that if the business fails you are not personally responsible. Once you have that set up, you will need to develop relationships with creditors in order to get lines of credit to purchase your property and do renovations. Also, develop relationships with realtors who can move property quickly, as this is the key to making money!

Answer 6

Yes, you sure can. I would recommended watching these videos:

http://www.networthopportunity.com

...and then email me at [e-mail]

-Angela