Yes Justin... Your pal is incorrect. Foreclosures while a good value generally sell at close to full market value. There are steep discounts on some property at the court house steps but that requires all cash and a real knowledge of the market as you may be buying it sight unseen and without knowing what is inside of there.
Banks have a duty to get the loan value back. That is not always happening right now and so we are selling a lot of homes short. The basis on this stuff is where would you want to invest? What great values are out there? What can you do to manage the homes once you find them?
I would say that there are a few homes for $10K I have seen but they are in Detroit and markets like that and are complete rehabs. Your friend is advising you incorrectly. Having said all that there are great values out there in this market and you can find them and make money in this market. This is something however you should be actively involved with and not just leave up to chance or in the hands of others while you are away.
Hey Justin thanks for serving our Country. We support you all the way so stay safe and God Bless!
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