The Big Opportunity For Foreclosure Buyers That Hasn’t Existed Until Now
Have you ever been to a foreclosure sale? This is the actual process where the bank takes back the house. In Bellingham, the sale takes place right in the courthouse lobby.
You’ve heard the stories of how much money you can make buying foreclosures, right? I guarantee that attending a sale will show you it’s not that easy. It is a great way to make money, but as with most things, there’s a learning curve. And it’s been my experience that learning curves can be costly.
The biggest risks and downfalls of buying foreclosures are 1. You have to have cash 2. You cannot inspect the property (until now, that is) and 3. The owners may still be living there and you have to get them out and don’t know it they will strip or trash the place.
This market right now has 3 incredible opportunities for foreclosure buyers that have not been possible before. First, a number of the houses are currently on the market, so you can get inside, even do an inspection if you wanted to risk the money. Secondly, many of them are vacant. That is a huge blessing for foreclosure buyers. Lastly and the best, there are some that already have a buyer in place wanting to pay more than you can buy it for.
Recently a home sold at the courthouse that was on the market for $215,000 with comparable sales in the area at $225-240,000. There was an offer on the house for $200,000 awaiting approval of a short sale by the bank. Now follow this – the minimum bid price on the house was $15o,000! How stupid is that? The bank won’t approve a bona fide offer of $200,000, but will sell it for $150,000 at the courthouse. There’s an example of good business.
But for you, the foreclosure buyer, you buy it for $150,001 and have a buyer already in place who will pay $200,000! Now there are some buying and selling costs but you could make a $35,000-$40,000 profit within 30 days on an investment of $160,000 or so. That works for me.
Why didn’t the $200,000 buyers buy it – you may ask? Pure and simple – they didn’t have the cash. That’s the biggest deal – if you don’t have the cash you can’t play the foreclosure game.
If it is a game you want to play, find out the rules.