Is there really profit to be made in buying foreclosed property?

Question

I see it the late night informercials and it seems viable but the example properties look like they're in the middle of nowhere.

Answer 1

Yeah there is money to be made, but you have to have plenty of cash to do it.....You can't buy property without any capital, you have to have a good chunk of money to make it less risky for you.....But I hear these infomercials saying you can buy foreclosed properties with NO money down, that's just silly.....

And don't fool yourself, most foreclosures need a lot of work, they are neglected homes that have NOT been maintained....I am in the business of buying foreclosures at auctions and 95% of them need at least $10k in repairs.....

Answer 2

Don't fall for those infomercials. The information barly skirts the truth.

Yes it is true that you can buy a $250,000 for $8,000. What it doesn't say is that it is a tax sale. For some reason the owner has fallen behind in paying taxes, and yes the property is sold, but only contingently. The owners have so much time to buy back the property and there is nothing you can do to stop it.

There can be some that are real moneymakers. But ask yourself, if he could make that kind of money doint it, why is he offering it to you at some rediculas rate. I quess there is actually more money in selling a DVD than in foreclosed homes.

Answer 3

you could continuously sell it if the value is low sufficient. that's what the financial corporation will do....rapid sale. The question is, what is going to the financial corporation do if the sale proceeds do not cover the soundness of the indoors maximum loan. It oftentimes won't, on account that the those condotels are oftentimes presented with numerous hype and are overpriced and the rents under no circumstances cover the charges. because of the certainty that this could be a apartment property, you had a corporation certainly property mortgage, which as a rule are "non-recourse". this suggests that the lender does now not have recourse to the borrower's property; seizure of the collateral is the only selection. you will possibly desire to learn the papers which you in basic terms signed very heavily. Or did you men individually insurance the indoors maximum loan? Please, on your sake, i wish you cautioned them this replaced right into a residence unit and now not for individual use. in case you gained a individual own mortgage for property on your own use, you have gotten purely slightly scale down interest value, yet you dedicated fraud. Get out those papers and initiate analyzing. impressive fulfillment!

Answer 4

Foreclosures are everywhere, especially in today's real estate market.

Yes! You can get deep discounts on homes, providing the owner going through foreclosure had been paying on the mortgage for a few or more years.

I suggest using realtytrac or other foreclosure sites on the Internet. They provide local listings of foreclosures, NOD, REO, FSBO and Re Sales.

Answer 5

Check the legal section of your local paper. There are lots and lots of forclosures every day,a nd the address are right there in black and white. Yes you can make money from them, but you will need some up front cash or really good credit to begin. Many of these homes may need a small bit of work, a bit of paint, a good cleaning, but it would be worth your while.