Related Posts
Pro
What eft or stocks are you holding in your 401k?
More Posts
Is advisory green light alive ?
Personal finance book recommendations?
Additional Posts in The Real Estate Bowl
Is it a good time to move to Austin, Texas?
Pro
What eft or stocks are you holding in your 401k?
Is advisory green light alive ?
Personal finance book recommendations?
Is it a good time to move to Austin, Texas?
Sometimes they pour concrete down the toilet drains and you have to Jack hammer the floors out and redo all the plumbing, or maybe they pulled the copper out of the walls and you have to redo everything.
Or maybe it’s run down and you have to do 50-100k in renovations. Stuff like this.
Just get title insurance and that should be taken care. But yes double check you’re getting it free and clear which usually banks handle.
We’ve bought short sales and foreclosures - usually they’re in shit condition which is why people didn’t sell in this market for a profit.
Also maybe they didn’t do stuff to code and technically that needs to be fixed. You can make money on them but you typically have to come with lots of money to fix everything.
I normally buy shithole properties and just gut them to studs and finish them to like new class A and rent out - or rather that’s what I used to do. Probably be getting into again as the market falls :)
Mentor
It’s risky because you can’t always see the properties.
Generally it’s easy to assume I just get it done xxx dollars less than market I can make money. Sure but to your point everyone thinks the same and the prices generally don’t go for that much under. I’d say this is probably easing now though I’m the current real estate market than even 6 months back.
Liens
Mentor
I did this once as a flip and it worked out in the end but the hard part was the discovery period. It is not a smooth and easy transition from one owner to the next (at least mine wasn’t). More like here is the house, figure it out. Mostly little things like hiring a locksmith to change the locks and open the mailbox, paying back electric bills to turn the service on, replacing burned out appliances and unclogging drains. It was worth it just more of a puzzle than I expected. Do your due diligence when it comes to the home inspection because usually these are being sold “as is” and without a seller in the picture the listing agent is going to be just as clueless about the state of the property as you are.
Note the difference between foreclosure and tax sale - with ability to reclaim.
Either way, they’re listing a starting price usually based on what’s owed, not on the value. There’s little resemblance between that number and what it’ll sell for. I’d suggest you go to a few sales and just observe for a while. If you can get to know some people in the know - you’ll be popular as an attorney who can do things with liens and such - then you’ll find yourself at a great advantage when you go to pull the trigger on the right deal.
Mentor
Finding foreclosed properties that others aren’t snapping up
For example I see a townhome going to auction starting at $140k. Exact same plans in the community have sold for $250-285k; so even if I pay $215k and can rent or sell, I should come out ahead.
I am quite sure I’m not aware of something here or everyone would be doing it.