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HouseCenter.Com Tips for Investor
Part I: Introduction Tips
Real estate investor must be alerted it is an art in stead
of money makes money.
Question: Where is the
information on HUD foreclosures?
Answer: Please visit their
Web page at http://www.hud.gov.
Question: Do you know
anything about IRS properties?
Answer: You may visit the
IRS property website at http://www.treas.gov/auctions/irs/.
Question: What is the
return on property remodeling?
Answer: You could expect to
recoup 20 to 75 percent of the remodeling cost, according
to the survey.
Question: Is that a good
idea to do fixers in bad areas?
Answer: It depends. However,
If you are a new buyer, it may be wiser to look for properties
that only need cosmetic touches rather than tackle houses
that need major structural fixes.
Question: How does a
home go into foreclosure?
Answer: Foreclosure process
usually begins after a borrower has skipped three mortgage
payments. The lender will record a notice of default against
the property. Unless the debt is satisfied, the lender will
foreclose on the mortgage and proceed to set up a trustee
sale. Unfortunately, many home owners don't know 60 percent
foreclosure cases could be reversed by talking to the lenders
for solutions.
Question: Are foreclosures
a good option?
Answer: Thousands of homes
end up in foreclosure every year, it depends on different
regions. Economic conditions usually affect the number of
foreclosures, too. Many people lose their homes due to lose
their jobs, credit problems or unexpected expenses. It is
wise to be cautious when you go to a foreclosure. Inexperienced
buyers should hire an expert to help them through the process.
Case Study 1: Few years ago, we had purchased a downtown
commercial property in Greenville, South Carolina. Previous
our purchase, the property set there for three years, the
listing price dropped several times from $135,000 to $85,000,
and still no buyer coming in. We made an offer then, and got
it at $55,000. We sold it four months later in 30 minutes
- by using real estate property auction at the price $77,000.
Case Study 2: Few years ago, we had purchased a downtown
property in Columbia, Missouri. We got it at $35,000 at a
real estate auction. We sold it four months later by listing
with a real estate company at the price of $65,000.
Case Study 3: Few years ago, we had purchased a residential
property in Greenville, South Carolina. We bought it at $115,000,
and sold it by using FSBO (For Sale By Owner) two years later
at the price of $147,000.
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