Rumors about Foreclosures??
Hey there,
I have heard from several realtors that foreclosures are not good deals because you always end up paying more due to the bidding process. Is this true? I know absolutely nothing about it and am trying to see if this is a good investment opp.
thanks
Not necessarily true. It of course COULD be true depending on the deal, and the price, but it is generally a great way to pick up properties. Most will agree that the further away from actual forclosure it is, the better off you will be (ie, preforclosures).
Thanks!
So in the end it all depends on how you do it and when... Good tip!
After we invest in the first property, then we may spend some time exploring foreclosures as a separate investment opp.
dabaldwins,
This is a classic case of being mindful of your source. While there are rrealtors who are investors tthe tremendous majority are not. Since they are not they may only see one side of the "bargain" picture when it comes to foreclosures. For an investor there are a multitude of options in each type of scenario but for realtors many only see the retail sale side.
You are doing the right thing by asking here and then doing your research among those people who make money from actually buying foreclosures well.
[addsig]
Here is what motivates me... when you hear other peoples "success" stories you wonder can they be true but when it happens to someone you know, you CAN'T give up because YOU KNOW its real. Anyways heres my story that keeps me on the road...even tho' I'm on the dirt road I'll eventually get to the roads of gold.
A friend of mines dad bought a forclosed house at auction for $3,500 with $5,000 in back taxes but the county let it go for the $3500 to get it off the books. (Granted this probably doesn't happen very often) The house needed to be demolished by the looks of the pix I've seen. The owners were both in jail and hadn't paid taxes or mortgages and had 5 junked cars in the front yard with 90+ tires in the back.
He put an add in the paper for "free cars, you haul" that weekend all the cars were gone + the tires. He then paid someone $10/hr to "gut" the house just leave the "shell". After about 55K in repairs it sold for 159K, and the neighbor seeing what he did to that house sold him his; obviously not as cheap but definately a deal because he has a buyer waiting in the wings.
Don't give up!
Incredible story!!!
I love this game
Amazing! I'm learning a ton already. So if you invest in a foreclosure, and turn it around, doesn't it have to appraise for an amount within 50K of the selling price?
I heard a news commentary on stocks vs real estate, and the suggestion was that stocks should be your #1 investment, property 2nd. How can this be true with foreclosure & tax lien opps out there to seize? At least there is a guaranteed profit right? I mean, everyone needs a place to live.
Yes...more realtor and non-investor advice. I am really glad to meet all of you and hear the "other side" of the story