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Some nice leads right there. Nirmal - remember properties that are already foreclosed (meaning they are bank owned) may not represent the best opportunity.
For instance - I purchased a preforeclosure from a guy who owned a condo. He owed 126k on it (plus bank fees) and it was worth about 240k. I bought it from him so he could get out of the situation he was in and about 3 months later sold it for 233k - making just shy of 100k. This is the only preforeclosure i have ever been involved in because they're not easy to come by - they're a lot of work and when you can't find the owner it's very difficult. Also - you assume alot of risk especially if you don't know what you're doing.
I'm NOT saying that foreclosed properties don't present opportunity, but what you'll find is that after a property is bank-owned, it can be priced at or near market value, thus negating any advantage for a buyer, other than one that is willing to pay a "retail price", not an investor price. I've seen the biggest dumps that are reo (reo stands for real estate owned aka bank owned) that need a ton of work and the bank prices it at market value same as a house that is move-in condition!!!!
Sun Jun 15 2008, 20:04
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