Rehabbing And Preforeclosures...

Has anyone ever combined the two. Example: Buy property from owner in foreclosure for balance owed. Complete whatever rehab work that needs to be completed. Then sale or refi.

The reason this appealed to me is b/c of the substantial discounts at which these preforeclosure properties can be obtained. And a lot of time w/ minimal repairs.

Any thoughts???
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Comments(4)

  • shamund22nd October, 2004

    Thanks for the reply jomac.
    i agree. foreclosures definitely has its advantages. I just dread the fact that I would now have to go thru banks and r.e. agents. At exactly what period do you pursue foreclosures?? At the auction? I am very interested in hearing about some of your techniques. Also, aren't there just as many investors prowling on the foreclosed homes as there are preforeclosures?? And one more thing. Do banks typically put a foreclosed home on the market for the balance that was owed to them or what.

    Thanks.
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  • Ruman22nd October, 2004

    It depends. I am a RE agent and was just trying to get my parents a deal on a house that sold at sheriffs sale for $71k, but since it was trashed, they listed it with an agent for 47,500. It assesses at 82k and FMV fixed is about $90k.


    Quote:
    On 2004-10-22 13:11, shamund wrote:
    Thanks for the reply jomac.
    i agree. foreclosures definitely has its advantages. I just dread the fact that I would now have to go thru banks and r.e. agents. At exactly what period do you pursue foreclosures?? At the auction? I am very interested in hearing about some of your techniques. Also, aren't there just as many investors prowling on the foreclosed homes as there are preforeclosures?? And one more thing. Do banks typically put a foreclosed home on the market for the balance that was owed to them or what.

    Thanks.

  • Ruman22nd October, 2004

    Oh, and nearly every pre-foreclosure i've ran across needs some sort of "rehab" work. If they can't afford to make payments, chances are they didn't do much upkeep or maintence to the house. Out of the three houses my partner and I have gotten so far all three have needed at least carpet/paint. One needs a roof badly.

  • shamund22nd October, 2004

    After sheriff's sale, how long do you have to purchase property if you won the bid??
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