Anyone into Real Estate?
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Joined: Jan 2002
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While money can be made buying & flipping homes you have to be very selective of the houses you buy. I work with several people who buy and sell homes, I own a mortgage company so I get to see lots of scenarios, and they spend 40 hours or more a week looking at homes and buy only about 1 a month at the absolute most.
The thing to keep in mind about a foreclosure is that you have proof that home wouldn't sell. Now you just have to find out why.
Typically it is the location. Look at most foreclosures and rental homes and you will find them on corner lots, backing or fronting on busy streets, close to schools, apartments, shopping centers, near high tension power lines, railroad lines, etc.
The next issue is condition. Foundation, roof and carpet issues seem to be the most common, and most expensive, probs.
Usually the houses have a combination of both problems. Only very, very rarely is the foreclosure a personal finance problem of the old owner. There is too much money in a home for someone to just let it go back without trying to sell it. Catching people in a bind is a much better "buy" than a foreclosure.
You can't do anything about location so just keep in mind that even if you were to fix the house up gorgeously the house won't sell as quickly or for as much money as a home across the street or on another block.
You can do something about condition, but don't go overboard with fix up if you have a location prob.
The thing to keep in mind about a foreclosure is that you have proof that home wouldn't sell. Now you just have to find out why.
Typically it is the location. Look at most foreclosures and rental homes and you will find them on corner lots, backing or fronting on busy streets, close to schools, apartments, shopping centers, near high tension power lines, railroad lines, etc.
The next issue is condition. Foundation, roof and carpet issues seem to be the most common, and most expensive, probs.
Usually the houses have a combination of both problems. Only very, very rarely is the foreclosure a personal finance problem of the old owner. There is too much money in a home for someone to just let it go back without trying to sell it. Catching people in a bind is a much better "buy" than a foreclosure.
You can't do anything about location so just keep in mind that even if you were to fix the house up gorgeously the house won't sell as quickly or for as much money as a home across the street or on another block.
You can do something about condition, but don't go overboard with fix up if you have a location prob.
Joined: Oct 2000
Posts: 17,288
Likes: 39
From: Nashville
Originally Posted by Wildncrazy,Nov 8 2006, 10:06 AM
While money can be made buying & flipping homes you have to be very selective of the houses you buy. I work with several people who buy and sell homes, I own a mortgage company so I get to see lots of scenarios, and they spend 40 hours or more a week looking at homes and buy only about 1 a month at the absolute most.
The thing to keep in mind about a foreclosure is that you have proof that home wouldn't sell. Now you just have to find out why.
Typically it is the location. Look at most foreclosures and rental homes and you will find them on corner lots, backing or fronting on busy streets, close to schools, apartments, shopping centers, near high tension power lines, railroad lines, etc.
The next issue is condition. Foundation, roof and carpet issues seem to be the most common, and most expensive, probs.
Usually the houses have a combination of both problems. Only very, very rarely is the foreclosure a personal finance problem of the old owner. There is too much money in a home for someone to just let it go back without trying to sell it. Catching people in a bind is a much better "buy" than a foreclosure.
You can't do anything about location so just keep in mind that even if you were to fix the house up gorgeously the house won't sell as quickly or for as much money as a home across the street or on another block.
You can do something about condition, but don't go overboard with fix up if you have a location prob.
The thing to keep in mind about a foreclosure is that you have proof that home wouldn't sell. Now you just have to find out why.
Typically it is the location. Look at most foreclosures and rental homes and you will find them on corner lots, backing or fronting on busy streets, close to schools, apartments, shopping centers, near high tension power lines, railroad lines, etc.
The next issue is condition. Foundation, roof and carpet issues seem to be the most common, and most expensive, probs.
Usually the houses have a combination of both problems. Only very, very rarely is the foreclosure a personal finance problem of the old owner. There is too much money in a home for someone to just let it go back without trying to sell it. Catching people in a bind is a much better "buy" than a foreclosure.
You can't do anything about location so just keep in mind that even if you were to fix the house up gorgeously the house won't sell as quickly or for as much money as a home across the street or on another block.
You can do something about condition, but don't go overboard with fix up if you have a location prob.
In my area, there are a pile of repo's that are in what I would call "decent" parts of town. The houses are just completely shitted up...... old windows (some broken), nasty dirty gross kitchens and baths, etc..... I assume these people got the boot due to $.
Also, the sheriff sale lists around here also lists how much is owed..... a fair amount of time the amount owed is right near the value of the house.... they take $ out when refinancing (buy bluetooths, etc....)...... and can't make the payments.
I have tried sending out letters to houses that are on the Sheriff sale list, etc... but that never seems to work. It would save the homeowner the hassle, etc... but I have never even gotten a reply.
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Joined: Apr 2001
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From: La Habra
The days of flipping houses is going the way of the day trader, in the trash. Take a look at the average time on the market and the inventory situation. You'd have to get a stunning value and still offer it well below market value today. Otherwise your money can die a lingering death on the MLS.
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Joined: Nov 2005
Posts: 1,064
Likes: 1
From: Wappinger Falls, NY
The days of flipping houses is going the way of the day trader, in the trash. Take a look at the average time on the market and the inventory situation. You'd have to get a stunning value and still offer it well below market value today. Otherwise your money can die a lingering death on the MLS.
I should know my moms a broker and I work the Houlihan Lawrence Real Estate even though I am a graphic artist/marketing I still pay attention to what
Joined: Mar 2002
Posts: 112,963
Likes: 150
From: Doh!!
to the OP. I don't really think there's such a thing as easy money. If it was easy, other people would be doing it.
when I was growing up, the American dream can be achieved. You just have to work hard and save. Somewhere along the way, the American dream is now achieved by making easy money. Working hard and saving is aparently not in vogue anymore.
when I was growing up, the American dream can be achieved. You just have to work hard and save. Somewhere along the way, the American dream is now achieved by making easy money. Working hard and saving is aparently not in vogue anymore.
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