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DayFlipper, Both Buyer and Seller in San Jose, CA

I need a realtor to help me find/buy a foreclosure

Asked by DayFlipper, San Jose, CA Thu Mar 29, 2012

Next month we are listing a home for sale in San Jose (under market to encourage bids). I want to buy a foreclosure, but I want a realtor to help me ( a realtor with experience with foreclosures). I know I can join that website (HomeFinders?), but I heard that is a scam. I want to try and spend 175k or less cash, so I will still have some cash to fix the place up. What I really would like to do is to try and flip a place while living in it. If I find a realtor I like to help me obtain a foreclosure, they will also get my business when I resell it, and when I go to find another foreclosure. A realtor who can also offer help estimate how much it will cost to remodel, and what changes will make the most profit, is also a plus, but not necessary. I have mentioned trying to find a foreclosure to the agent who is going to list our current home, but she doesn't respond, I don't think she knows how to obtain them, and experience is important. Thank you

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6
DayFlipper,
Terri brought up excellent points. The insurmountable problem is that there are no homes for $175K. You can get some condos at that price but there is very little profit to be made flipping a condo. the complex has a maximum value and if the seller prices the condo low enough for you to make a profit the competition to purchase it will be fierce.
The next problem is that the number of actual foreclosures on the market is very small and the banks are not giving them away because they do not have to. I have a foreclosure listing that we are getting ready to put on the market soon and the bank has paid for me to get it repaired so that they can get the profit on the fix up.
And finally some banks, although not all make the buyer of a short sale or a foreclosure sign an agreement that they will not re-sell the home for 90 days after a purchase. This makes flipping a little harder for investors, but maybe not you if you are going to live there.
So my bottom line to you is it is not easy to find a home to purchase and remodel, although it is possible. But doing it for $175,000 is not likely to happen in the Silicon Valley.
Marcy Moyer
DRE 01191194
Web Reference: http://www.marcymoyer.com
1 vote Thank Flag Link Thu Mar 29, 2012
I have a lot of questions for you before I could even venture to help you.

When you sell your home where are you planning on renting until you close on your next property?
What are you expecting to get for $175,000 or less?
How much money will you have after the sale of your house to invest?
Where do you want that property to be located?
What type of return on your investment do you expect to make?
When you say Foreclosure are you referring to the court house steps? Short Sales? Bank Owned Property? Or Pr-Foreclosure?
I am assuming that on the remodel you are not going to do the work yourself, but hire a contractor?

Until I had the above questioned answered, I wouldn't accept the job of someone's Broker. Then dependent upon their expectations and my ability to deliver we would make a mutual decision. This is done with a meeting in my office.

Terri Vellios
Broker Associate
Keller Williams Realty
Web Reference: http://www.TerriVellios.com
1 vote Thank Flag Link Thu Mar 29, 2012
Thanks for coming to us for advice!
Marcy
Web Reference: http://www.marcymoyer.com
0 votes Thank Flag Link Fri Mar 30, 2012
Thank you all for the advice/insight. I greatly appreciate it!
0 votes Thank Flag Link Fri Mar 30, 2012
Hi,

If you are trying to get a house 50% below market, it wont happen. Try and change the city/area to see if you can get a foreclosure/shore sale/REO at 175K.

Contact me if you are able to get little more real with this purchase.

Thanks,

Chand
(408)931-1271
DRE#01905197
0 votes Thank Flag Link Thu Mar 29, 2012
You have recieved spot on advice from both Terri and Marcy. What you are trying to achieve in your price range is pretty much impossible in this market. As Marcy pointed out this is a sellers market right now and in your price range if a home ever did come on the market at that price there would be at least 30-50 offers and many of them would be ALL cash and the home would sell for WAY over asking price. NO bank or short sale lender will approve a price for a home in this area that is that below market value. Please understand I know of and represent ( and I'm sure the other realtors also represent ) many buyers who are looking for a similar deal.
I'm sorry, but what you have laid out is not going to happen, you would need to do what Terri advised and contact one of us realtors who answered your question and work your area of interest and get a REALISTIC view of what is possible in this market and if it fits with what you are able to do.
Feel free to contact me with any questions.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
0 votes Thank Flag Link Thu Mar 29, 2012
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