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best way to find and bid on foreclosed homes?best way to find and bid on foreclosed homes?
rmani said: "looking for ideas. i've seen some websites advertising foreclosure's but they all require a membership fee which makes me weary with all the scamming sites out there. how do i find foreclosure listings and go see the places?"
aprilwms said: "Larger banks such as Indy & WAMU turn their foreclosure's over to RE Brokers to get them listed. They dont want to deal with buyers. So you'll have to do what everyone else is doing, get an agent. But if you have cash and can buy 20+ homes, you can walk into the work-out division and buy them before they go to market, below market."
rmani said: "damn well i dont have that much available i'm just scraping togther enough for a 1st condo i want to keep the rest of my money in the market."
aprilwms said: "[QUOTE=rmani;71150]damn well i dont have that much available I'm just scraping togther enough for a 1st condo i want to keep the rest of my money in the market.[/QUOTE]
Get an agent and start watching your local market.
But be wary of the agent who starts pressuring you to buy now because "foreign investors are eating up the inventory" or who tells you "banks aren't willing to negotiate" or who prematurely says the time to buy is NOW. It's not, but it's coming..."
psaysofavril said: "I would appreciate any more advice on purchasing real estate for investment in this market."
Kloewer said: "I read an article in the WSJ a couple months ago about how Baby Boomers are starting to migrate into urban areas. The same goes for young adults, who are rejecting their parents suburban lifestyle in favor of city life. High gas prices are playing a role in this movement out of the 'burbs and into downtown areas, but so is the desire to escape the dullness of cookie-cutter suburban neighborhoods.
After reading that article, I sold off a couple stocks that had made big gains in the last year (one coal stock, and one rail stock), and used the money to put a good downpayment on a high-rise condo in a Midwestern city. I'm screening potential tenants now, and have been overwhelmed with the number of applicants.
I made a low offer, and eventually agreed on a price that was 4% below the listing price (not a huge discount, except that it was priced low to begin with due to the market environment). When they found out that I could easily put more than 20% down on the condo, they were eager to deal with me, because so few peopole can get loans anymore.
So that's how I played it, psaysofavril. I (hopefully) sold stocks that had benefited from the commodity boom near their highs, and (hopefully) bought real estate near its low.
Only time will tell, but so far it's looking like a smart move.
Now I'm turning my attention back to investing in the stock market (where most of my money still sits), and look forward to profiting off the next boom (financials, anyone?) to buy my next investment property."
ratAphooey said: "If you have solid credit there are plenty of bargains right now IMO."
jolllyroger said: "I have a marketing team of 40 plus people working for me finding bank owned properties. There is more to it than just finding a property owned by the bank.
You have to have exit strategies. The other part is knowing in advance what your ROI will be. You must buy at a price that you know you will be able to sell quickly. Holding properties for extended periods will eat into profitability.
There are a lot of areas where you can go wrong in buying bank owned. These properties are sold as is. Rehabs bring down lots of would be investors.
Don't forget that the current crisis was brought on by would be investors trying to leverage their money. It's exactly what caused the crash in 1929, exccesive leverage from buying on margin. Now lots of us are picking up the pieces and the money left laying around.
I never buy a property that will not produce a positive cash flow. If the property takes to long to sell it goes up as a rent to own to maximize monthly cash flow and cover any down sides that may come from dealing with tenants."