Foreclosure homes?


Question:
I was wondering homes that are foreclosured and sold are cheap because I saw on tv that I woman bought a $1.5million home for like $600,000 from an auction(not a ad or infomecial) . Am I imagening or is there money to be made in foreclosure homes. Can homes be that cheap?

Answer:
But you do not know how much she was required to put as down payment, it could have been as much as $400,000. While purchasing a foreclosure can be a good investment if purchased at the right time and right price. Remember foreclosures are bid on at sheriff sale. You have to bring cash or certified funds. Some may have equity, most do not and most need expensive repairs. The get rich quick schemes are just that, hot air. If you are truly interested in being an investor in real estate, consider buying properties for rentals. All these folks losing their homes are going to need a place to rent.
Which real estate rip off artist's method was it that you saw? Remember most of those jerks make their money selling their books.
The issue is . . .Who will pay you for it after you buy it ?
They had to go to auction because No one would pay the higher price . . .
So after you get it , How are you going to make $$$ if No one will pay more than that auction price ?
Yes , you can buy it that cheap and then you live in it .
Good Luck tho on selling it to anyone else !

>
Example - Foreclosure - $116,900
Assessment - $146,500
No Upgrade - $146,500 (no upgrades)
Upgrades - $178,000

In two months made $61,100

True Story
First when you buy at an auction it is all cash, no financing at all. It takes money to make money at the auctions. After you win high bid you have one hour to go to the bank and get a cashiers check and give it to the trustee and in about a week you will get a trustee deed. The real good deals are gone, there are so many people bidding at the auctions, they are almost paying market value for the prop. They have these auction at your local court house at least once a week.
read the news, listen to the media and do some reserach----yes there are many foreclosures.can yu make $$ buying them---doubtful
banks are not letting the foreclosures go for nothing.they have gotten assistance from the federal reserve and are going to hang onto properties until they can sell for the default amount.
are those occassional good deals - maybe short sale---sure, but few and far between.

good luck :)
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