Rental Property Investor · Orlando, FL · Member since 2019 · 56 posts · 26 votes
I'm searching foreclosure auctions and I'm coming across properties, for example, that are worth 400k+ and the judgement amounts are 75% or less of the ARV, such as 280k. Does anyone deal in offering the home owners 300k for their 400k+ home, which gives them 20k cash? Are you successful in this approach?
I'm searching foreclosure auctions and I'm coming across properties, for example, that are worth 400k+ and the judgement amounts are 75% or less of the ARV, such as 280k. Does anyone deal in offering the home owners 300k for their 400k+ home, which gives them 20k cash? Are you successful in this approach?
You said in your post "foreclosed" which is past tense. I assume you mean, "about to be foreclosed at auction but not yet foreclosed". My two cents is based on that assumption:
You and a dozen others (or more) are seeing the same information so, if it goes to auction, you compete with every one of them. If you somehow get to the owner before auction and try to strike a deal (before the other gang of investors that are trying to do the exact same thing, get to them) and you are able to get them under contract, I'd make darn sure your numbers work and that there aren't any liens in front of the foreclosing entity. I'd make sure you aren't buying a money pit. I'd make sure you calculate a safe margin or error. I'd make sure you are prepared for every possible "oops" scenario possible.