How Much Cash At Hand To Dream About Pre-foreclosures

Comments(7)

• 
  GWmson5th August, 2003

  5k should get ya a deal or two, if you do it right.
  
  More money just means you will be able to get in on more deals, more deals are not neccesarily better. Think where would x amount of money bring you the best return.
  
  If you can make 20k with 1k invested isn't that better than making 20k with 10k invested.
  G'Luck
  G

• 
  qwikm5th August, 2003

  G,
  
  Thanks for your comments. I have definitely have more then $5K . Even if I make $5k on $1k spent I will be a happy camper (slurp..slurp).
  
  I assume you are pointing to a subject 2 deal that I can make happen with the $5K (or less) investment..
  
  let me know.
  
  Thx
  QM

• 
  Renman6th August, 2003

  "5k should get ya a deal or two, if you do it right. "-- Please explain.

• 
  MrsMeltzer6th August, 2003

  GWmson knows something that I don't.
  
  On my last "subject to" "pre-foreclsoure" it cost me $35,000.
  
  $1000 to the seller
  $24,000 in back payments
  $10,000 for new paint, roof, carpet, etc.
  
  And I might have to help with closing costs when I sell the house.
  
  However, if you decide to become a birddog, it won't cost you a dime.
  
  Hope This Helps!
  
  Mrs. Meltzer

• 
  jorge1216th August, 2003

  sub 2 is not suppose to be a big cash outlay investment strategy. if you are pouring $24K into a subject to you are probably going about it the wrong way. preforeclosures are probably NOT the deals you want to do subject to unless you stand to make a good chunk of change. generally you want to take a property subject to that is current or perhaps just a couple of payments late, but not many; it defeats the purpose.

• 
  MrsMeltzer6th August, 2003

  I'll hold the property for 6 months and make 30% on my money.
  
  That's a 60% annual percentage rate.
  
  Much better than the 2% I'd get with the money sitting in the bank!
  
  Mrs. Meltzer

• 
  GWmson6th August, 2003

  This is advice worth repeating.
  
  "sub 2 is not suppose to be a big cash outlay investment strategy. if you are pouring $24K into a subject to you are probably going about it the wrong way."
  
  I've had 2 people offer to give me their house this week. NOTE:
  GIVE me their house, the catch? I couldn't afford it at that price.
  
  The payments were WAY past due and already in Foreclosure with sale date set. I Looked at equity left in house, look at investment to get in and and said, "Nope sorry. Thanks anyway and good luck."
  
  Theres other ways to get them without tons of money, if they aren't in foreclosure yet, theres lots of way a investor can get the house cheap by just having the owner of the house try to do a workout or forebearance with the lendor. Once done, Investor can buy at more favorable terms and price.
  Best deals, preforeclosures no more than 2 months late.
  Now.. secrets out. EGADS!
  G [ Edited by GWmson on Date 08/07/2003 ]