Doolhb, Home Buyer in Exeter, NH

MY PRESENT MORTGAGE IS 2000 per , I have 25,000 cash, I want to purchase a fixeruper for 50k foreclosed list-

Asked by Doolhb, Exeter, NH Mon May 25, 2009

auction in NH. Can I do it and then sell it or keep it and sell my existing with another 50k cash out of the existing? How do I go about this process?

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5
Dane Hahn, , 34223
Mon May 25, 2009
You ask how you can turn $25,000 into $50,000 using fixer-upper real estate as your method. A few years back you'd have only needed to buy a fixer-upper, spend $50 on paint, mow the lawn and relist it. But because that was possible then doesn't mean it still is. Today you will need 25% down to buy an investment home--so if you already have a house, then the next one you buy will be for investment.

You will save yourself and those of us who try to answer these questions alot of time if you ask this question of a reputable mortgage banker. Buying auction properties and trying to lift cash out of properties that may or may not have real market value is not something for the faint of heart or the freshman investor.

My suggestion is you take your $25K and invest it in a $100,000 home in Florida that you can rent out to your snowbird neighbors and use yourself. Today trying to make money in foreclosures and fixer-uppers is risky indeed.

Best luck,

Dane Hahn
NH/FL Broker
Web Reference:  http://www.daneandsandra.com
1 vote
Goat, , Denmark, IA
Thu May 28, 2009
Two ideas:

I have always found it fascinating that auction winners are contented in winning said auction. In fact the winner has just agreed to buy that item at a price at which no else would. Is not that the definition of overpaying? Hmmmm. I know the real winner is the auction house.

Anyhow, the question is constructed in a way that leaves me with...errr...more questions than answers.

Looking to put the cash to work as an investment? If so you will need to buy physical silver and or gold bullion as it is about the only bull market available today. Buy on the dips of course.

Fyi, a hedge fund manager by the name of Paulson known for shorting the housing bubble to make $4 billion is buying billions in gold and silver. Article here:
http://www.marketfolly.com/2009/05/paulson-co-john-paulson-b…
0 votes
Ken Lambert, , Exeter, NH
Thu May 28, 2009
Hello Doolhb- I'm a local mortgage officer and have some unique ways of looking at things and scenarios. If you can give me some info on your current home and more of your financial information, I could tell you what is feasible. Also, how long have you owned you own home, etc? We have an office in Portsmouth and I am in Exeter daily.
Have you ever managed/ landlorded a property before? That is important for many of the lenders these days,

Thanks and good luck,
Ken L.
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed May 27, 2009
Your best bet is not to purchase at auction but to purchase after the home has gone through the auction process. The banks buy virtually all homes back at foreclosure auction anyway as most people owed more than the home is currently worth, the auction is the process that clears the title from past due liens. If you purchase at auction you are responsible for past due taxes, water, sewer, mechanics liens and if there is a 2nd or 3rd mortgage. By buying after the bank takes it, often times cleans it then porices it to sell you are limiting your liability. Please feel free to email me at sctprop@aol.com for more info on buying foreclosures. I can offer you a list of current properties, updates on new listings and tips from past experiences to assist you in your goal. Good Luck
Web Reference:  http://www.ScottSellsNH.com
0 votes
No one, , Arts District HOA, Irving, TX
Mon May 25, 2009
I'm sorry, can you clarify?
0 votes
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