Home Buying in Los Angeles>Question Details

david-da-dude, Both Buyer and Seller in New York, NY

Could I buy a house in forclosure (500K), Hold on to it for 1 year, and then sell it for its real estimated value ( 4.5M )? Possible ?

Asked by david-da-dude, New York, NY Sun Jul 21, 2013

Help the community by answering this question:

Answers

12
BEST ANSWER
David, you do not have to buy it at a public auction. You can find plenty of foreclosure (REOs, Bank Owned, etc.) with a Realtor. You absolutely can buy one, hold on to it and sell it whenever you're ready. Almost every investor buys them, in most cases rehab the property an then sell it 3 months later. So a year from now is absolutely acceptable.

If you're looking to buy cash, simply link up with a Realtor who can help you locate the right property. If you're financing, you 1st move is to meet with a Loan Officer who can pre-approve you for the mortgage. You'll need 2011 & 2012 tax returns, 4 recent paystubs, 2 recent bank statements and 2 forms of ID.

I'm always available to meet face-to-face if you new a reliable Loan Officer to help you. I have offices in Manhattan, Brooklyn, Queens and Long Island. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Sun Jul 21, 2013
We can certainly help you out. You can check us out at http://www.TheMortgageOutlet.com and give us a call. One of our loan officers will look at your situation and present you with some options.
0 votes Thank Flag Link Mon Aug 5, 2013
Possible? Yes Probable? No.
0 votes Thank Flag Link Wed Jul 24, 2013
when you say foreclosure is already bank owned? or is it in process of being foreclosed ( been sold as short sale?0 Are you saying that the property real value is 4.5 M?


Alberto Pacheco
818 481 9211
albertopacheco@kw.com
Keller Williams North Valley
0 votes Thank Flag Link Wed Jul 24, 2013
You are dreaming! If it is worth $4.5 million it will never sell for $500,000. You are not the only one that can see a good deal!
0 votes Thank Flag Link Mon Jul 22, 2013
It's nor for SALE you spaz !
Flag Tue Jul 23, 2013
David,

This sounds too good to be true.

- Why would the owner lose a home worth $4.5million and only owes $500,000.00? Owner could have sold the home for $4.5M or less and made a profit.

- If scenario is true why would the bank let anyone overbid at approximately $500,000 when home is worth $4.5million? The bank is in the business to make money and has to ability to hold property and then resale it at a profit.

- I would get a title report and review total liens on property.

- Contact local Realtor request recent SALES in immediate area.Homes with similarities to subject. Is home really worth $4.5M?

- Consider repair/replacement home required for resale. Costs for repair/replacements. I can imagine this is a large home. What condition is: roof, plumbing, electrical, foundation, any mold damage and etc.

Getting back to the first question you can purchase and resale in one year. Check with real estate accountant verify if there is any capital gains for investor owning for only one year. This sounds too good to me true but maybe it is true. There has to be more homework to verify the validate of the deal.

Good Luck!
Gail Mercedes Cole
EXP Realty
310.853.9933
0 votes Thank Flag Link Mon Jul 22, 2013
Okay, let me re-phrase My question:
So, the link below is a Trulia.com link for a house in forclosure in Beverly Hills for $360K, It's estimated value is $1.74M.

So, could I possibly Buy this house for the $360K, Then hold on to it for 6 months( during these 6mnths, I'll rehab it, fix'n'flip etc...) After the 6 months, Could I sell it for the $1.74M ?
This situation is really bothering me, so I would like to get a serious, truthfull response as quick as possible.

Anyway, Thanks to all for the help, I really do appreciate it :)

THE LINK :


http://www.trulia.com/foreclosure/3119361011--Hutton-Dr-Beve…
0 votes Thank Flag Link Mon Jul 22, 2013
It sounds profitable in theory, however, I seriously doubt the realty of the scenario. Usually a Real Estate investor will actually "invest" into the property in the way of upgrades to increase the value and the increases are not as dramatic as you outline.
"if it sounds too good to be true....it probably is"
0 votes Thank Flag Link Sun Jul 21, 2013
Hi David,

The L.A. real estate market is really hot right now fueled by a shortage of inventory. Generally speaking, there is no reason for someone to lose a house for $500K if it worth $4.5 million. The owner could just sell it for the $4.5 million!

If you are seeing a foreclosure for that amount on a house worth $4.5 million, there are a couple of possible scenarios:

1. There are underlying liens that come to more than $4.5 million.
2. There is something fundamentally wrong with the property preventing its sale.
3. The property is not worth $4.5 million.

If none of these things are true, then you can rest assured that there will be a bidding war on the court house steps. Come prepared.

In case you don't win that bid and you really want to buy something in L.A., just give me a call.

Judith Gottesfeld
The Realtor Extraordinaire
Gibson International
310-622-7441 direct office
310-428-6978 cell
0 votes Thank Flag Link Sun Jul 21, 2013
Thanks everyone for the great Answers, help and Advice ! Your help is very kiing & thoughtful.
Kind Regards and best wishes
David.
0 votes Thank Flag Link Sun Jul 21, 2013
Of course you can.
But, you are aware, the devil is in the details.
The idea you can buy prme property for 10% of market value just might be "too good to be true."
If you only made 50% of that, it is still a great deal.
Of course you know that.
You don't need permisson from strangers on the internet to pursue a 'Too good to be true' opportunity.
-
However, if you are not experienced in such opportunites, you may want to consider the wholesale market after acquisition. You would only make 2 Mill on wholesle but avoid the 'details' that tend to sink most 'too good' ships.
0 votes Thank Flag Link Sun Jul 21, 2013
If it is in foreclosure you would have to buy it at the public auction for cash. You would have to outbid the bank that is owed money on it and they often bid what is owed.
0 votes Thank Flag Link Sun Jul 21, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer