I really want to get my feet wet in the field of real estate development and community development. I am thinking of bidding on some houses that have been foreclosed on. These bids start around $1,000-$2,000. I am still in college, and I don't have a good-paying job, but I have saved some money up. Is this a good idea? What else can I do to get in the field of real estate?
2007-11-14 03:30:23 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Not really, at least not in this point of your life.
Starting bids are meaningless. They quickly rise to close to market value. And the lender will ALWAYS bid the outstanding balance on the loan which is probably more than the property is worth. They have to do that to control their losses.
Next, you must put down 10% in cash or certified funds as soon as the hammer falls. Then you must close very quickly, usually within 10 days. Unless you have a "hard money" lender in the wings there's no way you'll get a mortgage loan that quickly.
As a student you don't have the time to do the refurbishments necessary to "flip" houses and you probably don't have the time or expertise to play landlord.
If you want to get into real estate, get your license and work at sales or property management for a couple of years to learn the ropes. Then you can decide what areas you want to pursue and will have a good idea of what you are doing and what the pitfalls are. It's always best to learn from the OTHER GUY'S mistakes!
2007-11-14 03:41:08 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
It is a great idea, but I do not think you will win with that little to put down. As for getting a house that is foreclosed on, it is the cheapest way to capitalize on a real estate investment.
Scott Rinehart
www.wantthebestrate.com
2007-11-14 03:49:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Think long term. Not just: "can I get a piece of property", but "can I afford to keep/maintain the property", and "can I make the property profitable". There are many low cost educational opportunities available at your local adult education and community college facilities, or take an elective course in the business division since you are still in college. I would be cautious about "get rich quick" seminars and media products. Learn the basics. Consider getting a license as an agent or appraiser. There are still lots of opportunities.
2007-11-14 03:41:33 · answer #3 · answered by artwhiterealtor 3 · 0⤊ 0⤋
If you are going to risk the majority of your savings on this, it is a terrible idea.
It is highly unlikely that, unless they are condemned, those houses are going to sell for the starting bid.
Save more money, study your market thoroughly and buy a little starter house that needs work. Fix it and live in it or rent it out. Start small and move up from there.
2007-11-14 04:56:28 · answer #4 · answered by godged 7 · 0⤊ 0⤋
do it but the bank will outbid you if too low.
also the process is very long.
just purchased a house and when the title is clear it can be done in days. the other process can take 3 months
good luck to you hope you achieve your dream
2007-11-14 03:38:02 · answer #5 · answered by Michael M 7 · 0⤊ 0⤋