Home Buying in 48917>Question Details

Gian Luca, Home Buyer in Lansing, MI

Is it true i can buy a house for less than 1000 dollars? As the John Beck's commercial says?

Asked by Gian Luca, Lansing, MI Sun Dec 28, 2008

I saw this commercial and i was surprised.

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Answers

30
Look, we're just trying to paint a realistic picture of today's market for the average home buyer. I don't want to see anymore buyer's get burned. Enough people have been burned in this mortgage crisis, and I don’t think they need to get burned jumping into a big investment without considering all aspects.
Chuck calls people like me a “loser” or a “naysayer” for trying to educate people on both sides of an issue. He states that we "...make it a hobby to convince others not to do something." Do you honestly believe my hobby is to convince people not to buy property? We (Realtors) make our living selling property, but I do think it's important to discuss all possible aspects of purchasing $1000 homes regardless of making a commission. I see it as my responsibility as a Realtor.
Home values are declining, and inventory is sky rocketing. Prices are also dropping as seller's find themselves in a financial pinch, turn to short sales, or let the property go into foreclosure because they can't make payments on their loan or pay the property tax. This is a good thing for those in a position to purchase a home. It does mean great deals. Just remember that a bargain today may not necessarily be a bargain tomorrow- that must be the naysayer in me. Do not let money be the only motivational factor in a decision such as this. It may be different if you are a flawless investor, but seeing as how even Donald Trump, the other guru of real estate, has made bad decisions before I’d make an informed decision.
Now- Chuck is right in many regards and he focuses on the positive spin. There is nothing wrong with that. Can you buy a house for less than $1000? Sure. Will it need rehab? Maybe, but maybe not. Do you risk losing everything? Possibly. Proceed with caution? YES
On a final note:
Chuck says... "One can follow Beck's tax lien certificate method or just find an open minded real estate agent who's not afraid or biased to take your lowball all cash offer to the bank suffering with an immense inventory of reo properties."
Chuck, I hope you haven't come across an agent who refused to submit your lowball offers. Realtors must submit all offers regardless of how close minded or biased they are. There are exceptions to this such as if the agent has been directed by the seller not to present an offer below a certain price. This may vary state by state though, so maybe you haven't been done an injustice. Anyways, I don't think too many agents have a problem submitting a lowball offer in this market.
Good luck in your ventures everyone! I too will be looking for opportunities. Don’t sit too close to the TV watching late night infomercials- even if George Foreman’s lean mean fat grillin’ machine is too good to be true. (It’s actually not too bad- he just doesn’t tell you about its flaws.)
2 votes Thank Flag Link Fri Jan 30, 2009
Buying a house for $500 to $1000 or really anything under $5000 is absolutely possible today. (see my earlier answers in this thread)

Helene's warning had me lol. It's not a question of sounding to good to be true...it is true. These houses are available throughout the USA. Good grief Helene...location? location? location?...we're not holding out, waiting, for one of these $1000 "gems" to suddenly appear in Bloomfield Hills, MI ! Folks like Shea (see YouTube link in earlier post) know that many of these bargains are not in great locations (although some are). Location does not matter so much when you're buying the house for $1000.

Chuck
1 vote Thank Flag Link Fri Jan 30, 2009
JR,

Yes, livable conditions. All need work of course but it's easy to do especially when one knows that by replacing a toilet and sink and adding some paint and fixtures, one will realize a profit of $50,000 to $70,000.

Clear title...yes. This is rarely a problem.

Evictions? The houses are empty.

Banks are stuffed to the gills with these properties. I just spoke with my real estate agent a few minutes ago; he told me that the banks will have so many more foreclosures on their books by the spring and summer that I will be shocked at how cheaply I can buy them for all cash.

For those who don't understand why these houses are so cheap just remember that a bank has to pay all the property taxes and carrying costs for each house. Although they won't admit it publicly, these banks are dying to get rid of these houses, to get them off their books. Great opportunity for those with a little cash, open mind and elbow grease.
~~~~~~~~~~~~~~

Although I agree with much of what you say, I disagree that people who are looking at these properties such as the original poster realize the amount of work that needs to be done. And I really disagree with your statement about putting in a toilet, fixtures and painting making most of these $1,000 places livable. I have seen foreclosures for a lot more than 1,000 that are missing all the plumbing, doors (including exterior), the furnace, appliances and half the wood flooring. Surely putting in a toilet and painting these isn't going to increase their value a cent. I recently saw a foreclosure that had some wall damage, pet stained carpeting, scratched floors and was missing appliances. It was in the best condition of any I'd seen but it also wasn't 1,000 it was 600,000.
1 vote Thank Flag Link Fri Jan 30, 2009
John Beck's program is about buying homes at tax auctions, not homes listed for sale by a Realtor or By Owner.

Is it possible to end up with full ownership of a home with only a $1000 payment? Yes, but not likely! Most states/municipalities don't auction off full ownership of a property, they only auction off the right to earn interest on the unpaid property taxes (which is what your $1000 pays for). If the original owner never redeems the property by paying the delinquent taxes, then you could become the owner.

Since the days when John Beck's program was first written, competition for tax sale properties has increased with the addition of very sophisticated institutional investors. You'll be able to spot them at a tax sale with their volumes of computer printouts with information on every property on the auction list. While there is still the remote possibility that you could actually pick up a home for this price, most likely you'll just get paid back your investment ($1000) plus a relatively high rate of interest. That is, if you can even find a house that is on the auction list. Most properties listed are raw land, and many properties, especially houses, will get redeemed prior to the tax auction either by the owner or by the lender.

Remember also that tax sale properties may come with liens attached that then become your responsibility, and they may need significant work before they are suitable for occupancy.
1 vote Thank Flag Link Sun Dec 28, 2008
I don't know who John Beck is or what his commercial says. If something seems to good to be true it generally is. A house that would cost less than $1,000 probably needs tens of thousands of dollars of work on it just to make it inhabitable.

There are lots of great deals to be had in today's market. I suggest you speak with a local Realtor to get a better idea about those deals in your market.
Web Reference: http://miOaklandCounty.com
1 vote Thank Flag Link Sun Dec 28, 2008
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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Hi i would like to buy a home not exceeding 50k in usa it has to be in a safe area. i live in toronto and would like to settle down at a later time. Prefer seattle or a green place.
0 votes Thank Flag Link Sun Mar 31, 2013
Certainly, an individual can buy a house for $1000. People do all the time, and many of these people make money doing so. But the people who make money buying the $1000 houses have already paid thousands of dollars in the school of experience and hard knocks learning how to make money with the $1000 house. They didn't learn what they know watching an infomercial.

You can buy the house with the $1000. You just may buy your dream home. Much more likely, however, you are buying a nightmare.
0 votes Thank Flag Link Sun Jul 12, 2009
Remember If it Sounds too Good To be true ???????
Do your research a deal is not a deal unless its in a great location and its value is under current market value. In addition to location condition of the property is very important.

Bargin Hunters beware !
0 votes Thank Flag Link Fri Jan 30, 2009
You'll notice that most real estate agents posting here are overly cautious with their "advice". It's understandable for they earn their income from commissions. The higher the price, the higher the commission. In my opinion they provide a valuable service and earn every dollar.

Most agents are not investors. Many work with investors but they approach real estate from an honest though different perspective.This thread is about buying cheap houses so there will be little or no commission involved in these transactions. I think it's wise to consider the downside of buying a cheap house. It helps a buyer complete his due diligence but it should not be a deal killer. The rewards can be great for an investor who does his homework and actually presents a written offer.

As for Tony's comment..... "Look at it this way: if bank could sell one of these homes for $50,000 then they would."..... It seems logical but it is not. Banks generally never approach each reo listing like an individual homeowner trying to sell his home. Banks have hundreds and thousands of these listings. They want them gone yesterday. Banks must pay the property taxes and all expenses incurred with owning a home. It is a huge burden on them. If the auction doesn't produce a buyer, then on to the books it goes. Although they won't always admit it publicly, these banks are privately screaming..."Take this house off my hands...please!" This is why a private investor or homeowner may turn a $50,000 or more profit on a house that a bank just wants to unload. It happens everyday. Banks are in the banking business not the house selling business.

Chuck
0 votes Thank Flag Link Fri Jan 30, 2009
hi chuck i think you know what your talking about ....i am interested in these properties i
am wounding if you are well versed in this area....do you know a bank trying to get rid of some of these Champain homes on a beer budget please contact me suegerry03@gmail.com
Flag Wed Apr 9, 2014
Hi,Jared:

Thumbs up for your honest answer. I live in South louisiana,post Katrina--not the priciest area in the world and believe me--$1000 will just about get you a decent rental. The cheapest uncleared lots go for about 10K & it's hard to get a decent house under 100K.
0 votes Thank Flag Link Fri Jan 30, 2009
Gian,
Like they say, "opinions are like a$$holes, everyone's got one"

So here's my two cents.

YES you can buy a house for less than $1,000! Can you make money off it? Certainly! Will $1,000 be the extent of your investment?? I doubt it :(

Expect to spend additional time and money on improving the home and making it livable. Look at it this way: if bank could sell one of these homes for $50,000 then they would. There's something that doesnt add up there. If you have the know-how or the resources to undertake a project like this then go for it...just make sure you do your research before you do.

Good luck
0 votes Thank Flag Link Fri Jan 30, 2009
As this loser/naysayer and others said before Gian, Good Luck......


This opinion is the sole property of Dunes Negativity Center and is strictly strict about other uses of it outside of spreading negativity. Must go, have picnic to attend.....
0 votes Thank Flag Link Fri Jan 30, 2009
Detroit, MI, Philadelphia, PA, Cleveland , OH, are some of the places that have homes until $1k. Most of them are "shells" of a house, but nonetheless, a house.
0 votes Thank Flag Link Fri Jan 30, 2009
Gian and other bargain hunters,

The best advice I can give you is to ignore naysayers like Dunes and others. They are experts on how something can't be done. These are the types of advisers you must never surround yourself with.

The world is full of negative people like this who make it a hobby to convince others not do something. Stay away from losers like this and you'll do well.

A $600,000 reo? Good grief talk about mixing apples and oranges. I live in an area where the average home costs @ $350,000 and million dollar homes are common but this thread is about cheap houses...houses costing $500 to $1000. There are more of these bargains in the USA than ever before.

They are out there and no they all do not need massive rehab as others have suggested. One can follow Beck's tax lien certificate method or just find an open minded real estate agent who's not afraid or biased to take your lowball all cash offer to the bank suffering with an immense inventory of reo properties.

In earlier answers I gave you the links regarding cheap $1000 houses. Click em, then read about it and watch a real person show you the dirt cheap houses he has purchased. Stay away from people who only want to tell why it can't be done. If you take action while ignoring the negative folks, eventually you'll look back and realize the "critics" were just ants at your picnic.

Chuck

Chuck
0 votes Thank Flag Link Fri Jan 30, 2009
Except for Dunes you people need to read the original question. As John Beck does. He buys TAX deliquent propertys at auction. Gian at least you live in the right town as Lansing is where the auctions take place, I believe once a year. Herb
0 votes Thank Flag Link Fri Jan 30, 2009
Everyone who can buy $1000 dollar home and sell them for a $50,000 profit, please do so.....

Gian, good luck with this plan...

When Jessica Simpson, Richard Simmons, and Jami Lee Curtis appear as experts? LOL

J R If you would have just put a new toilet in that $600,000 foreclosure and steam cleaned the pet stained carpets, you could have made a cool $50,000 profit. Bet you're regretting that now..........

Good luck to everyone in their new home rehab career, Dunes
0 votes Thank Flag Link Fri Jan 30, 2009
In my opinion, Jared's blanket condemnation of all late night TV infomercial gurus as "scam artists" is closed minded. You might have your doubts about Ron Popeil (although he seems like an honest man to me) and others, but does Jared feel George Foreman, Jaclyn Smith, Chuck Norris, Richard Simmons, Robert Wagner, Donald Trump, Jessica Simpson and Jamie Lee Curtis are all "scam artists"? I don't, even though each of these folks has appeared as an expert or guru on late night TV infomercials.

My point to investors is be open minded about opportunities. Don't think of permits, repairs, carpenter ants, titles, smelly rooms, cosmetic damages and such as reasons to run away from a cheap ugly house. These are precisely the reasons to buy the house. All these problems can be fixed for very little cost compared to the return on investment. These are the reasons all the other folks don't want the house. They can't get past the stink to collect $50000.

Remember, we're talking about dirt cheap houses...some as low as $500 to $1000 (see the Yahoo link in my previous post). You don't have to change the neighborhood. Sure it probably sucks (but not always), however people do live there and you only paid $1000 for it. Even after the cost for repairs, you will make a huge profit. Just watch Shea's YouTube channel (link in previous post) and watch how he does it. He's a remarkable investor.

Perhaps you just want to live in a home you own... without a landlord. If you're willing to sacrifice then raise a small amount of dough and buy one. Just fix it up and you're the King or Queen of your own castle.

Closing costs, tip of the iceberg? Give me a break....just pay the lawyers and title companies their blood money....you only paid a grand for the house! Plus you can always ask the bank to kick in half...doesn't hurt to ask.

My broker was not implying that buyers should wait until the spring and summer. He just meant the inventory is bursting at the seams and growing everyday.

Now I must get back to the Pocket Fisherman Infomercial.

Chuck
0 votes Thank Flag Link Thu Jan 29, 2009
yes you can....but if you only pay $1,000.00 you will have a lot of work to do...repairs..permits...more repairs...title work cost...A $1,000.00 is just the tiop of the ice berg...he does not disclose all the other closing costs involved
0 votes Thank Flag Link Thu Jan 29, 2009
I'm speaking from the market I work in and around. In my market, it's called being realistic- not close minded. Let's try not to throw around false assumptions of people whom we do not know, and have a nice clean game.

The market is different wherever you go. The homes I have seen in the D for a few thousand are old abandoned properties, and/or foreclosed properties. If you've been in enough foreclosed properties you'll know that the previous owners or tenants don't always leave the property in excellent condition! The market in Detroit is not great for quick flippers. If you have the ability to purchase these homes now, revamp the neighborhoods, and sit on them until property values return you may do very well. That's an area for a serious investor to research more.

You may be able to pick up a nice house on a tax lien for a few thousand- I don't refute that. I'm just pointing out the fact that usually these properties are not $1,000,000 pristine homes. Realistically, you'll probably have to put in some sweat equity. If you have a network and resources like the great John Beck you might do even better. Chances are though; the average guy watching those infomercials does not have the time, network, or resources. Experts aren't made overnight, but you can get lucky!

REO's are a different matter all together. Banks do not want to sit on these properties, because it costs them a significant amount of money. A $250,000 home could go for $150,000 or less in my market if its bank owned. The banks lose out huge on a sale like that, but they feel it is a better strategy to dump the property instead of sit on it. Many banks work differently, however. Some banks will try to "hold out" for a better offer. Remember- they don't want to lose any more money than they have to.

Chuck said:

"...he told me that the banks will have so many more foreclosures on their books by the spring and summer that I will be shocked at how cheaply I can buy them for all cash."

This is the word on the street as I hear it too, Chuck. Of course, this could backfire as buyers hold out till spring for the good deals. If demand suddenly increases you know what happens to price. If the supply is so overwhelmingly huge then price may not be affected.

It all depends on YOUR market. The market you purchase or sell your property in. Like I said, this is how it works in my area.
0 votes Thank Flag Link Thu Jan 29, 2009
JR,

Yes, livable conditions. All need work of course but it's easy to do especially when one knows that by replacing a toilet and sink and adding some paint and fixtures, one will realize a profit of $50,000 to $70,000.

Clear title...yes. This is rarely a problem.

Evictions? The houses are empty.

Banks are stuffed to the gills with these properties. I just spoke with my real estate agent a few minutes ago; he told me that the banks will have so many more foreclosures on their books by the spring and summer that I will be shocked at how cheaply I can buy them for all cash.

For those who don't understand why these houses are so cheap just remember that a bank has to pay all the property taxes and carrying costs for each house. Although they won't admit it publicly, these banks are dying to get rid of these houses, to get them off their books. Great opportunity for those with a little cash, open mind and elbow grease.

Chuck
0 votes Thank Flag Link Thu Jan 29, 2009
1. http://www.youtube.com/user/proshea01 This gentleman, named Shea, has this YouTube channel which shows cheap houses he buys in Detroit for as low as @ $2500...then sells for @ $55,000..others he keeps for investment. I don't know this man but thought folks would enjoy his videos about cheap houses. I certainly did.

2. http://biz.yahoo.com/cnnm/090108/010809_thousand_dollar_home… I found this article in Yahoo Financial News. it's about $1000 homes for sale.
~~~~~~~~~~~~~~~~~~~~

Don't have time right now to view this, but what condition are the homes in? Were they in anywhere near livable condition? Did he receive clear title? Have to evict the current occupants thru the courts?
0 votes Thank Flag Link Thu Jan 29, 2009
Gian,

Many real estate agents suffer from a closed mind and unfounded bias just like Jared but if you ignore their advice you can find a house in the USA for peanuts.

I don't know much about John Beck but here are some links regarding cheap houses:

1. http://www.youtube.com/user/proshea01 This gentleman, named Shea, has this YouTube channel which shows cheap houses he buys in Detroit for as low as @ $2500...then sells for @ $55,000..others he keeps for investment. I don't know this man but thought folks would enjoy his videos about cheap houses. I certainly did.

2. http://biz.yahoo.com/cnnm/090108/010809_thousand_dollar_home… I found this article in Yahoo Financial News. it's about $1000 homes for sale.

Of course there will be sacrifices when buying a home for only $1000 but in today's economy it is not difficult to accomplish at all. I live in Massachusetts where real estate is much costlier than most parts of the country, but there are countless houses selling for peanuts, some @ $10,000, in my area...33 miles from Boston.

Chuck
0 votes Thank Flag Link Wed Jan 28, 2009
I hope you are not inferring that Detroit is slumville. :-)

I refuse to recognize scam artists on late night TV infomercials who claim to be guru's.
0 votes Thank Flag Link Wed Dec 31, 2008
Jared John Beck buys nice homes at tax lein auctions not in slumville.
0 votes Thank Flag Link Wed Dec 31, 2008
You can purchase homes like that on E-bay. Look around the Flint/ Detroit area. It is not a 1 in 1,000,000 ratio of coming across them as someone mentioned below. The homes are usually unlivable, and no agent would dream of "buying them up." In most cases, purchasing a property like that would be like purchasing a home in Gotham City (a.k.a. the new Detroit.) An unwise investment unless Detroit makes a major comeback.

Sorry Detroit. I'll wait for the mo-town motor city revival.
0 votes Thank Flag Link Wed Dec 31, 2008
Linda has the best answer. Is it true yes. How often one in a million. John has a team that covers the country and buys in bulk, you as an individual would have a very hard time. Herb
0 votes Thank Flag Link Sun Dec 28, 2008
I have no idea who John Beck is, but I can tell you that if there were houses that could be purchased for less than 1000 dollars, we agents would be buying them in bulk.
0 votes Thank Flag Link Sun Dec 28, 2008
Gian,

I suggest asking Mr Beck, since this was his commercial. I also suggest looking for any disclaimers that may appear in the commercial.

As suggested, there are currently 185 homes for sale in my MLS for 1000 or less. Would any be a good buy? You would have to physically inspect each property to see what repairs may be needed to make the property livable. This could be thousands of dollars, but the only way to find out would be to actually have experienced contractors perform an inspection with you.
Web Reference: http://mi-living.com
0 votes Thank Flag Link Sun Dec 28, 2008
I can't imagine even being able to buy a vacant lot for $1,000.
0 votes Thank Flag Link Sun Dec 28, 2008
AS all commercials are geared to have you buy somethihng, very rarley can you buy any house for $1,000.00 You will always (almost always) have cost involved. From recording fees, title insurance, legal fees and you would need to buy a homeowners insurance policy at the least. Is it possible...yes...but very very unlikley. What he is probably referring to is you can buy a home with a $1,000.00 down payment.....but you will most likley have other fees and cost involved as stated above. If I can helo you in any way find a new home or an investment property, please feel free to contact me.
0 votes Thank Flag Link Sun Dec 28, 2008
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