Is it worth to buy foreclosed houses?
Foreclosed houses are really good for investment. If you find a good deal you can flip it and sell to gain a good profit fast. Before you buy a foreclosed house, you need to call an inspector, they could see important details that you don’t see. For example, a house could have an electricity problem, mold inside the walls, water drainage is broken, etc.
Remember that this type of houses are not going to be in good condition, so you will need money to renovate it. If you don’t have the money, you can find an investor where he/she put the money and you can put the labor, and you can split profit half in half. If you want to invest, I say go for it, if I have the money I immediately do it. So Good luck!
“>
March 14th, 2010 at 10:38 pm
absolutly not, unless u r desperate
References :
March 14th, 2010 at 11:12 pm
Foreclosed houses are really good for investment. If you find a good deal you can flip it and sell to gain a good profit fast. Before you buy a foreclosed house, you need to call an inspector, they could see important details that you don’t see. For example, a house could have an electricity problem, mold inside the walls, water drainage is broken, etc. Remember that this type of houses are not going to be in good condition, so you will need money to renovate it. If you don’t have the money, you can find an investor where he/she put the money and you can put the labor, and you can split profit half in half. If you want to invest, I say go for it, if I have the money I immediately do it. So Good luck!
References :
March 14th, 2010 at 11:42 pm
Just how much do you know about Real Estate and the different Markets. Do you own your own home now?
Develope some knowledge, keep an open mind and a closed wallet until you do. Talk to your banker, your states Real Estate Dept., and state Tax Dept., for starters. Its not a game and not for those with faint hearts. It can get down and dirty.
Jud B.
References :
March 15th, 2010 at 12:01 am
I bought a great foreclosure for myself and even thought of flipping it until I found out that the amount I paid and the amount it assessed at is truly a dream come true. I paid cash so I had instant equity but I gained $29,800 and I only owned the house for a month. the only thing is our county did a reassessment for property taxes and I have to pay $130 more than I would have. But thats ok because the house for sale down the block is going for $31,500 more than my house assessed at so if it sells for that (maybe, but doubtful) I would have gained $61,300 and I’m going to keep it for myself.
All of the above is without new carpet,paint or appliances, can you just imagine what it could sell for?
(not in this market but later on)
References :
March 15th, 2010 at 12:49 am
With the way the housing market is right now, don’t plan on buying and then selling right away to make a profit. Right now we are in a buyer’s market, not a seller’s market. so unless you plan on sitting on the property for some time, i would say wait. but otherwise yes, foreclosures are generally a good bargain
References :
March 15th, 2010 at 12:56 am
Depends on how much money is owed on the property. If the property was bought in a booming real estate market with a 110% finanacing, interesst only loan, the current market value is probably below the mortgage amount. Banks will take a loss but have a problem with taking a very high loss. A house in bank foreclosure with a low mortgage and in decent conditon can be a pretty good deal.
References :
March 15th, 2010 at 1:18 am
Most of time I don’t think so.
Foreclosures typically only sell for 20-30% less than appraised value. And in today’s market, values in California typically may have an higher appraised value than buyers are actually willing to pay. And values are expected by many to continue to drop for the next year of about 10% or so making your investments too risky.
But in you are states with an increase in value it might make sense.
References :