Recently I have teamed up w/ a person who will be the “money person” in our joint venture. Can anyone explain to me how the process of foreclosed properties are bought from the courthouse steps? What are the pros and cons of purchasing from courthouse steps? What sort of research do I need to do on a particular house before going to bid? Can I go inside the house(even if it isn’t vacant)? How would I know the systems are okay? How much should I expect to pay for a house if ie… it is worth 100k and the bank is owned 94k?
you should look at the house to make sure it’s a good property in a good location because you dont want to own something that you have a difficult to sell and that needs excessive repairs. By making $6k, you might spend more than that amount to fix it in order to sell it
Check its title, check for pending lien (propety tax owed, irs tax owed by the owner). Get an appraisal for the house
Calculate whether you will make profit after all repair, expenses that you spent is worth the $.
That was an excellent article kmcdermott. I had always read that purchasing at the auction was THE most risky way to purchase real estate. I knew the general reasons, but your article had great details.
I agree… excellent info
I wonder after doing a little research if it makes sense to contact the lenders after the sale… on ones that have not sold, make offers before they list it with realtors as a bop? (that is of course after doing due diligence)