Question:
This first Tuesday of November, my husband and I will be buying an investment property (home) at a trustee sale/forclosure auction, held at the steps of the county court house..I have chosen 5 possible properties and out of those five, I will buy one..I have seen all five properties and done all the due diligence on each property.That is, what is owed, what they paid, when they bought it, tax value, year built, sq foot, price per sq. ft, the first lien holder, etc etc.I just submitted these five properties to a title company so they can do abstracts and tell me if they have any other state or federal liens attached to them..I crunched all the numbers and hopefully stand to make a healthy profit.Most of the properties are in fairly good condition and newly built (1999-2004)..My question is, what more should I look for? Did I miss anything? I realize I don't have assess to the properties, and I have consider major repairs into the cost of all these properties...
Answer:
You're the only person I've seen here who has done it the right way. Now the only thing you have to look out for is the other bidders! If these properties are as good as you say, don't be surprised if some of them don't make it to the auction. Some people may file a last minute bankruptcy; Some may be able to pull off a last minute sale; some really sharp investors may buy the judgment & cancel the sale. Anything can happen. Good luck. Write back & let us know how you've done!
Hi there,
You've covered most of the bases.
Did you ponder why the foreclosure happened?
eg: what are the plans for the area? Is there an environmental issue (bad water, radioactivity, earthquake zone) that is not generally known.
What is planned for next door. Swine farming has certain odours.that sort of thing.
Did you chat with the neighbours personally?
Good luck with your enterprise! You deserve to be rewarded for your hard work.
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