Money in Foreclosures?
- Thread starter ForexPro
- Start date
I live in Arkansas, which is one of the lowest populated, lowest cost of housing / living states there is, so rreal estate is lower here than most places.
Last month (May) there were 1240 houses in foreclosure statewide which was down from the same period last year (surprisingly enough).
If i remember correctly house prices are down here about 14% on the year. Not sure if that was year to date or 12 months, but we have faire dbetter than most.
While visiting a friend in the country last week he pointed aross the field to a decent looking older white frame on 4 acres with several outbuildings - one big enough to park 2 or 3 cars in. It was a foreclosure that sold a few months ago for $10,000.
I'm sure it wasn't much house and may be run down but it was liveable, on a paved road and had city water. You can rent a junky trailer for or older home in the country for $300 per month. That's about the going rate on the cheap end.
I bet the land is worth $3000 an acre. I've been thinking of picking up a few of these. I'm just not sure i want to. I'm 51 and looking for less to do.
I think you can buy older run down homes for 1/3 of appraisal. You could owner finance and resell pretty quick for full value.
Last month (May) there were 1240 houses in foreclosure statewide which was down from the same period last year (surprisingly enough).
If i remember correctly house prices are down here about 14% on the year. Not sure if that was year to date or 12 months, but we have faire dbetter than most.
While visiting a friend in the country last week he pointed aross the field to a decent looking older white frame on 4 acres with several outbuildings - one big enough to park 2 or 3 cars in. It was a foreclosure that sold a few months ago for $10,000.
I'm sure it wasn't much house and may be run down but it was liveable, on a paved road and had city water. You can rent a junky trailer for or older home in the country for $300 per month. That's about the going rate on the cheap end.
I bet the land is worth $3000 an acre. I've been thinking of picking up a few of these. I'm just not sure i want to. I'm 51 and looking for less to do.
I think you can buy older run down homes for 1/3 of appraisal. You could owner finance and resell pretty quick for full value.
A tip for bidding on REO properties: send in a letter with all the reasons why the low bid is justified including but not limited to any repairs that need doing. A good one is negative changes to the surounding neighbourhood since the property last sold and recent comps(if they help justify the low bid). The bank officer needs to be able to point to something to cover his ass if his management of the sale is audited or to convince his supervisor to approve the sale at the low bid price.