Foreclosed Property

[higgmond]

@Greenman72

^Not necessarily. A lot of foreclosures happen when wannabe millionaires count their chickens before they hatch. They buy a house they can’t afford with money they think they’ll have in the future. Then, when the money doesn’t actually materialize, they can’t make their house payment.

That’s basically what happened with the house we bought out of foreclosure. The original owner over-paid AND financed with a loan that was interest-only for the first few years. I assume they thought market values would continue to increase and they would be able to refi before they had to start paying off principal as well, but the market went south instead and they couldn’t refi since they were underwater and couldn’t afford their adjusted payments.

[whatsyourgovt]

@CFAvsMBA

Also short sales and foreclosures are likely in shtty parts of town. Do you really want to live near the meth labs and crack houses?

Easier commute to get my fix bro. Don’t you live in Harlem, you understand haha

[Analti_Calte_Equity]

@Greenman72

^Not necessarily. A lot of foreclosures happen when wannabe millionaires count their chickens before they hatch. They buy a house they can’t afford with money they think they’ll have in the future. Then, when the money doesn’t actually materialize, they can’t make their house payment.

like MC Hammer … lol …

[system]

@higgmond

That’s basically what happened with the house we bought out of foreclosure. The original owner over-paid AND financed with a loan that was interest-only for the first few years. I assume they thought market values would continue to increase and they would be able to refi before they had to start paying off principal as well, but the market went south instead and they couldn’t refi since they were underwater and couldn’t afford their adjusted payments.

Yeah, when I did this stuff we took plenty of houses back from low income people, but also some richy-richy properties where some manic bought a trillion dollar house with an ARM loan, then strategic default when it didn’t work out.

[comp_sci_kid]

My friend does it for a living. It takes him about a year to short sell a property. Yes, he gets 50/60c on a dollar, but time commitment is really big and not all deals work out.

I myslef bought my first home as a fixer upper and promised i would never ever do it again. So right now i am in the process of buying from investor who bought, rebuild and is selling.

There is way to many things that can go wrong if you are doing it yourself. Big things are

1. You bought a fixer upper but missed structural damage (termite damage, bad support, cracked foundation etc)

2. You hired contractor, but contractor cut concerns and you didnt notice. Now your tiles were put on 1/2 instead 3/4 board and they cracked in a year. Bathroom didnt have cement boards installed, etc etc

3. You bought tear down to rebuild, but didnt check city variance, and suddenlty you can only build 2k sqft house vs 3k, so you just like 80k of your investment.

Bottom line - yes, you can save 50k-100k doing it, but it doesnt come with 0 effort. I would expect to spend close to 300-400 hours on a project and most of time during workday, which i simply cannot afford (Talking to architects/lawyers/contractors etc etc etc).

That being said i easily provide fundings to those kind of deals because return on equity (loan to collaterize hard cash) can be 20%

[Ghibli]

I live in a short sale. Not the ghetto. Over $250 per square foot. Yeah, took some time, but the deposit sits in escrow. Tell them to take a hike if 10% is “required”. Offer 1%. And don’t use an agent. Take the real estate exam and be your own. Instantly get 3% or so of your own money back. I literally flipped through the pages of the study book as I was working for five days and passed the exam. Many brokers are out there that will allow you to “work” under them for around a $250 fee per transaction.Do use an attorney, not an agent, with short sale experience. They’ll draw up the offer and handle all paper work. Real estate agents and Edward Jones 'advisors" should go the way of the Pinto.