Someone told me that they approached a bank with an all cash offer of only 50k for a foreclosure house in Chino Hills, CA, the bank accepted the offer and now they have a house which is worth 200k and they bought it for 50k. Do you know how I can go about doing this? Is this possible?
Thank you.
its very possible you’ll have to plug away at making alot of offers though…the banks need to get alot of these properties off there books. always good to come in with offers around the end of the month…
Sounds hard to believe a bank would sell a home for $50,000 if the current market value (comps) is $200,000, but i’m sure it’s possible. Most likely the house needed a lot of work and that is why they sold it for that price. I know for sure there are several areas where you can buy a house for $50k or less in California. This used to be nearly impossible. Look in the central valley areas or in Sacramento, out in the desert ,etc
The thing is that the repairs could be as much as $100K which is why the bank was quick to take an offer that fast.
You have to watch it these days. If a deal looks good to be true it probably is which is why you need to your due diligence before you deal with any kind of property from banks,FSBO’s,etc.
Got my last house for under 30. Saw another one today for 34 with 130 comps all day.
They are out there, best way to find out is to make low ball offers all day. It’s a numbers game. Don’t be surprised when they don’t answer back, or when they do!
I am an investor in Northern CA (Sacramento specifically). I have executed several sales similar to the one you are describing. Auction sales are amazing for discounts although it does appear the spreads have been declining. Most of my work now is off the REO and I tend to not visit the auction as much as I used too. I have purchased properties for myself, hedge funded investors and small private investors. The deals as you describe are there but far and few in between.