Posted by Thomas Melton on April 20, 2004 at 13:08:09:
I dont’ own my own residence but I have a small business dealing with real estate. I would like some help in buying process to jump start my business.
First Timer - Posted by Joe L.
Posted by Joe L. on April 20, 2004 at 12:14:05:
I own my residence and I want to get into buying foreclosed homes for investment purposes. I know how to do the due diligence part; my question is about the financing part. Do I simply get pre-approved prior to attending an auction? Who are the best type of lenders for foreclosed properties? Is it possible to approach the current mortgage holder about buying the property?
Thanks,
Joe
Re: First Timer - Posted by jeff
Posted by jeff on April 22, 2004 at 08:37:08:
Joe
If you own your house and plan to buy foreclosed properties to fix and sell my advise would be to get a home equity line of credit on your home. Now when you purchase it is a cash deal saving a lot in closing cost and other fees. This will allow you more room to bid and still keep your profit margin. Becareful at auctions however, some pro’s will drive the price up on a newbe so you will not come back to the next auction. Set your price and stick to it. Go to a few prior to even wanting to bid on one to get the just of how to do it.
best of luck
jeff
Re: First Timer - Posted by greg
Posted by greg on April 21, 2004 at 11:41:18:
joe, figure out what kind of investor youare, buy and hold, or flipper, Go to SKYPARKFINANCIAL.COM, they can get you preapproved to buy a property before you buy it…If you want to buy at an auction you will need typically 25% down the day of the auction with the balance due in 24 hours… if you have the cash on hand you might find a great steal…You can approach the current mortgagee that is in foreclosurem but most folks want to keep their homes,dealing with an owner in foreclosure is a very emotionally draining exercise, but you can get good deals thatway also, usually the Real estate classifieds will publish a list of the properties that are in foreclosure and are going to sherrif sale.If you do not want the emotional bagage associated with a preforeclosure go to a realtor and have them provide properties that have already been foreclosed on, hope this helps…