Updated over 6 years ago on . Most recent reply
Buying foreclosure properties
Hello everyone. I am wanting to learn more about buying foreclosure properties. Any advice or tips on how to get started? Any help would be great thank you!
Most Popular Reply
@Chancellor Swan
The link to the BiggerPockets page on foreclosures looks like a good technical description. Is that what your really looking for?
We have purchased a half dozen foreclosures in the few years and I can speak to the buy side and some due diligence best practices if that helps.
Once you get past the technical side of a foreclosure, how it happens, why it happens, etc... your left with the fact that some property has been repossessed by the lender, or surrendered back to a lenders possession.. it’s probably not cared for, been off the grid and vacant and perhaps abused in the process....but with a bunch of research, careful due diligence and homework to assure your buying it right or passing on it, you may be able to buy a great property well below market.. far enough below market to rehab and remarket and or own it as a rental with a good portion of real equity on day one after rehab.
Some industry insiders will tell you most REO Foreclosures are not good deals, and many are not because the bank is trying to recover their investment.... but if you know your market, that neighbor hood, the pricing, features and comps, you could start to know a deal when you see one. Do you have more specific Questions?
Good luck