Home Buying in Los Angeles>Question Details

Gary J. Powe…, Home Buyer in La Mirada, CA

can a house be purchased for under $500?

Asked by Gary J. Powell, La Mirada, CA Tue Dec 11, 2007

any property that can be purchased for under $500 whether a fixer upper or not

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$500 should get you a very nice tent from one of the sporting goods companies. You might be able to find a used camper shell or a non operable RV for that price. - Sometimes mobile home parks are willing to give old trailers away for free if you can move them off their lots.

If you were asking if there are homes under $500,000 then I apologize...

There are many people who really can't afford more than $500. - when I was in my early twenties, I lived in a tent for a couple of the summers to save money. It worked quite well for me.
5 votes Thank Flag Link Tue Dec 11, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
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So I got two thumbs down? Some one thought I was sarcastic. Gary has not been back to clarify. Since he wrote $500 in his question twice, and has not clarified, I think those of us who read his question literally were right.

I have another idea for $500. I'll bet that a contribution to Habitat or some such organization of $500 could build a shelter for a typhoon victim in Bangladesh.
2 votes Thank Flag Link Wed Dec 12, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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I'm assuming that Gary meant $500, not $500,000...since there are plenty of properties in virtually any county that can be bought for $500,000.

And the answer is: Sure. I've know plenty of people who've done it. Buy it subject to (Sub-2) the existing mortgage. Here's how they do it (for those who don't know subject tos): They find a homeowner in distress who wants to get out of a bad situation. The owner is willing to give the house up, just to get out from under. The investor says: "I'll buy your house subject to the existing mortgage. That is, you deed the property to me. I will own the house. And I promise to pay your mortgage on time. At some point in the future, I'll refinance, so the mortgage will then be in my name, not yours. But, until that happens, the mortgage will remain in your name."

Disclaimer: I'm not a lawyer or an accountant. I'm not offering legal or accounting advice.

Advantage to the seller: Relief from a bad situation. And if the investor makes good on his promise, even an improved credit rating for the seller, since the mortgage payments will be made on time. Risk to the seller: He's given his house to the investor, but is still on the hook for the mortgage. Also, transfer of equitable interest violates the lender's due-on-sale clause. The lender has the right to call the loan.

Advantage to the investor: He's acquired a property--gained legal ownership of the property--with little or nothing out of his pocket. Risk to the investor: A moral obligation to pay the seller's mortgage. Also, that at some point in the future he'll be able to refinance the property.

Sometimes, in a subject to, the investor will pay the owner some money, either for moving costs or for some of the equity that the seller may have in the property. And that could be $5,000, $10,000, or more. Other times, though, the owner doesn't have much equity, just wants to get out, and is willing to accept little or nothing.

So, yes, I know investors who have bought properties subject to for under $500.
1 vote Thank Flag Link Wed Dec 19, 2007
Don Tepper, Real Estate Pro in Fairfax, VA
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$500 dollars???? Sure you can purchase one. Just go to Shangri-La .com, keyword, Utopia. Just kidding. Couldn't resist. I know you must have meant $500,000.
1 vote Thank Flag Link Wed Dec 12, 2007
Gary,

Absolutely!!! There are many homes (not necessarily fixers) in your price range in Long Beach & Lakewood. Most are on the smaller side, 2 beds/1 bath. I'd be happy to send you some listings in my area. Just contact me.
1 vote Thank Flag Link Wed Dec 12, 2007
I DON'T KNOW OF ANY HOMES IN THAT PRICE ... DO YOU MEAN $500K?????
1 vote Thank Flag Link Tue Dec 11, 2007
first this question said a house under 500...... but dnt said in LA...... but you dnt need to go to another country,,,you can have a nice house but not great in detroit and can cost you about 500.00 to 5000.00 and yes there are houses under 500.00 dlls..... and you mean under 500k there are 1,000,000, of houses in michigan under that price........... of course i live in michigan,,,, and i know you mean 500.00 not 500k other ways is a stupid question......
0 votes Thank Flag Link Thu Sep 8, 2011
IT MIGHT WITH ALL THESE BANK REPOS , THE BANKS CANT AFFORD TO PAY TAXES
0 votes Thank Flag Link Wed Jun 10, 2009
Yes, it is possible to buy homes for under $500,000 in Los Angeles. There are some areas of San Fernando Valley such as Van Nuys, North Hollywood and Lake Balboa where you can find some wonderful homes in great neighborhoods under $500K. Let me know if I can be of assistance (818)422-1702.
0 votes Thank Flag Link Wed Dec 12, 2007
Hello Gary, hope you're having a great day. The opportunity to own a home in that price range is great, especially if you hire an agent that knows the available inventory. What's more important to you area or property condition? There are several Great Buys in the Long Beach, Lakewood and Norwalk areas. Give me a call if you think I can help you.
(310) 678-3247
Web Reference: http://www.freddawson.com
0 votes Thank Flag Link Tue Dec 11, 2007
Hello Gary, you can easily search homes in La Mirada on my website-- and yes, there are more houses entering that price range. There are some good ones in Long Beach also. Please call me for more info if you desire.
0 votes Thank Flag Link Tue Dec 11, 2007
Yes, you can.
1. Go to the City hall.
2. Find out the list of houses, that are behind of paying the taxes, and close to the point, when the city will auction them for the back taxes.
3. Find out the address of the owners.
4. Write them an offer of buying their house for $500, before they loosing it, which means they won't have the $500 neither. This way at least they got something for it.
5. After you bought it for $500, go to the city and tell them you just bought this house and would like to pay the taxes owed on them.
6. Fix it up and enjoy it or sell it.

In Detroit MI, you can buy under $500, too. Might not be the best neighborhood though...
Flag Wed Sep 25, 2013
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