Is buying foreclosures a good way to invest?
Question:
Answer:
Not at the sheriff's sale. Too many novices driving up the prices. Also, too many people don't know that liens go with the house. You need to have a title search done before hand or you could get burned.
You need to get them prior to the sheriffs' sale. The best way is preforeclosures called short-sales. Find a book on this because it is to detailed to go through in this arena. You could also find a REALTOR that is experienced in short-sales. It is hard work but pays off.
YES, especially if you plan on reselling it for a profit. Do your homework and you will become rich...
Normally you can buy cheap. But if the liens are more than the fair market value of the property, you will need to pay in excess of fmv.
depends on what you want to do with them. do you want to flip them or keep for rentals. Its very difficult buying foreclosures cause your bidding against the lien holder and mostly they want what is owed to them. If the house was foreclosed on at a small loan amount it may not be bad but most people that get foreclosed on owe more than what their house is worth
ONly with money you can live without.
Buying foreclosures is an excellent way to invest. You have to decide which way you want to invest in them.
Pre-foreclosure-Finding away to get to the owner of the property before the foreclosure sale. (The best way)
Foreclosure sale-Going to the sale and bidding on the property in foreclosure. (OK-but you are bidding against others for the property)
After the Sale REO list of lenders-you have to find out which property did not sell at the foreclosure sale, send the lender a deposit and purchase receipt for the property you want. (Another good way)
You must gain knowledge about which method you want to do and learn as much about that method as possible. There are several books about investing in foreclosures. You will find them at your local and national book stores.
If you want there are several guru's selling their course on TV, you might purchase one of them to begin with, they have a wealth of knowledge, but forget the part about "No money down" that happens about 1-40 times of finding a foreclosure.
I hope this has been of some use to you, good luck.
"FIGHT ON"
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