Preforeclosure Home in Northern California - Posted by Arnold

Real Estate Investing
1

Posted by Tina Frady on April 13, 2002 at 21:59:00:

Can someone tell me how you find a pre-forclosure?
Is it on county records? from ads?..I’m in the
learning process and trying to absorb all I can.
Thanks! Tina

2

Preforeclosure Home in Northern California - Posted by Arnold

Posted by Arnold on April 12, 2002 at 02:56:18:

Hello Everyone,

I need everyone’s brain on this on. Please tell me if this home is worth pursuing. The specifics are below:

1st Loan - 292,000
2nd Loan - 25,000
Default amount - ~20,000

The house is a 2bed/1bath ~ 1100sq ft. It has a big hole in the ground for a 3rd bedroom addition. The owner has the permit and draft. He is willing to take an extra 50K to add the bedroom or you can do it with your contractor. He is running out of time. You can take “subject 2” for the first 2 loans, pay off the ~20,000 back payments, add the 500 sq ft bedroom.

If this house is worth pursuing, how should I close on this one and still make money. I don’t think i can do this as a rental if i get it…and i don’t see how i can flip it. Hmmmm, have i just answered my own question? Alright guys…help me out please… i really appreciate it. Thanks folks.

Arnold

3

Re: Preforeclosure Home in Northern California - Posted by Michael in Phoenix

Posted by Michael in Phoenix on April 12, 2002 at 13:51:05:

Arnold,

You left out a couple of very important pieces of information:

  1. What does the property appraise for in its present condition?

  2. What would it appraise for once a third BR was added?

  3. Are sales brisk in the area?

The basic idea being that if the numbers won’t allow you to buy low and sell higher, and you don’t seem confident that holding and renting is a very good option, you may want to move on.

Michael

4

Re: Preforeclosure Home in Northern California - Posted by Jenn

Posted by Jenn on April 12, 2002 at 10:08:22:

Location Location Location. The house is only worth it if the location is good and the demand for that area is high that way you can make a profit. I know Northern California is not as demanding as Southern California.
Also if the house cannot be rental then make sure after you add the room you are going to make enough profit to come out on top. If you feel as if you cannot sell it for more than what you invested into it then I would say don’t get it. Do your research before you invest!! Even have an inspection of the house before you get into it.