How does everyone on here feel about a foreclosure livable with 60% off retail price. Soldiers where i live default on loans like crazy! Constant good deals going on.
Would there be any downfalls To say buy a foreclosed property at a discounted rate then turn around and sell it for a profit. This one home where i live was being sold at 50k. Comps for the property put the value at 120k. Granted i didnt have my llc or s-corp at the time so i couldnt do much. Everything in the place was re-done by the owner. Really bummed out! it was a rare find for a heck of a profit!
Does anyone else use this strategy? If not, then why?
You don't need an LLC or SCorp to make your purchase. You can always transfer it via Quit Claim deed once your entity is set up. Of course, check the laws about that for your particular state.
I don't see any downsides to purchasing foreclosures as you've mentioned if the numbers work. But since the military tends to be a tight knit community, I would just want to be sure I was approaching it as a win-win opportunity. In other words, are you creating a business plan by capitalizing on someone else's misfortune or could you possibly network with service men in your area when they're still in pre-foreclosure in order to help them out of a difficult situation? Military or not, it's a good practice to try to create mutual benefit. You may find that approach opens even more doors for you.
it is tight knit, But people move out around here by the year. this place is hot for rentals due to consistent soldiers being stationed here. The problem is if its already a foreclosure id be buying it from the bank cause they would own it.
But yes my primary goal is to use sub-to or conventional financing to help a soldier if they couldnt make a double mortgage and face foreclosure. However if it was already foreclosed by the bank not much i can do for them. But i would still buy it from the bank and sell it ouright. Thanks for your response though!
Join the Largest Real Estate Investing Community
Basic membership is free, forever.