I met somebody who buys house that are forclosed . He mentioned to me befor I even asked that he would buy the property, and signed the deed to me for cost and a finder’s fee 4-6k. All I have to do is refi the property. This is an investors dream. My question is is there a formula to buying houses in the situations? 30-40% below market price with minor repairs ect…
I think it depends on what you are going to do with the property. Rehab and sell? Rent? In the end, the numbers just have to work for what you want out of it.
Who is telling you what the “market price” is? How long will it be on the market before it sells and at what price? Does it need repairs?
There is a formula to buying houses. The formula is specific to where you are locally and what you want to do with that property. For example in Houston for a rental what I do is find a 3 bedroom 2 bath with 2 car garage brick veneer house with a pitched roof built since 1980 with 1500 sqft or larger that has an ARV of $95k to $115k that is for sell for less than $65k with a fix up requirement of $10k or less and no more than 1 major system to repair (roof, foundation, A/C, etc) I also look at the area rents and I look for around $1000/month.
Where you find that formula house is up to you. You can use a birddog, a real estate agent, or even word of mouth.