Hello everyone, I am just getting started out in the world of real estate investing, and a common trend I’ve seen amongst beginners is a lack of capital. I too suffer from this syndrome, which has pushed me to look at more affordable properties.
I was wondering what the BP community felt about doing a foreclosure as a first deal?
Thank you for your help!
@Faizan Bhatti A foreclosure was my first investment purchase. It can be a great deal. There are things to look out for (has the property been vacant for a really long time which can lead to issues, etc), but as long as you’re smart you can get a good deal. It might take more patience compared to a “normal” search though. But if you’re an investor ideally you aren’t on a tight timeline.
Good luck. Starting out is very exciting.
@Corey Hawkinson Thank you so much for that insightful response. I will definitely do my best research the property before I make an offer. I have on more question, if you don’t mind.
Did you execute this deal in cash or did you still seek financing?
@Faizan Bhatti I did finance the property with 25% down. The purchase price was $49k so 25% wasn’t a huge amount to come up with. At that time, that was probably the most I could put down though.
@Corey Hawkinson I see, and did you face any challenges securing funding for such a distressed property? Also, if you don’t mind me asking, what was your source of funding?
@Faizan Bhatti My situation was a little different. I worked at a 1 branch, very local bank at the time. I received financing through them so it was a little easier. They knew me.
@Corey Hawkinson Awesome. Thank you so much for your help and insight! Best of luck to you in your future deals