Very Newbie Looking For Some Guidance
I so very much would like to break into this business, and I have gathered quite a bit of information, but when it comes right down to it, there are gaps, I get scared, and I back off.
Here is the latest situation. On a walk through the neighborhood last week, I came across an abandoned house. Appearently, someone from the city has come in, and 'winterized' the place. Anyway, I went to the courthouse and looked up what I could. The property was purchased 9/02 with a note of $70K, it looks like they paid about a year, then quit paying approx 08 or 09/03. So the note is still approx $70K, and of course taxes from that time as well.
Rough comps are in the $105-125 range, but this place has been beat up pretty bad. It looks as though people have been hanging out in it. Its up for sale somewhere around May 20thish at the courthouse. I dont feel the place is worth $70K as it is.
My question is, what is the best approach on this place? It seems to me since there is $70K owed on it, I couldnt get it for less then that, certainly not now, and probably not at the sale....but like I said, Im new, what do I know?
At the sale, I would have to have some monies, how do I get that money from a bank. Do I pre qual? Dont I have to have a check ready for some amount at the actual sale time?
If I havent asked enough questions, let me know, Im sure I can ask a bunch more 8-)
Thanks for any help
Tim
Hello Tim:
Tigard is an up and coming area. Things are growing there quickly! good luck with the house. Personally, I feel that $70,000- is fair...but, get some comps from a realtor before you bid. Make sure that you do the numbers, including all costs to rehab the home. Tell the realtor that you want to buy it , fix it, and sell it using their services. A realtor will be happy to assist you.
Also, include commission costs if you do end up using his/her services.
You need to bring in cashier checks to the courthouse and register to bid. Bring in several in $5,000- to $10,000- increments so that you can bid accordingly. Good luck!
Thanks Deb,
I still have a bunch of questions though. First off, with all the work that the place needs, I dont think there would be any profit left if it were purchased at $70K (btw, this property is in Salem, but I do live in Tigard). Is there advantages/disadvantages to buying before the sale, or at the courthouse? How do I get monies to go into the courthouse with? Can I go to a bank and get a loan based on that premise? That I intend to buy at a foreclosure sale???
Ugh, Im sorry for all the questions, I just need it to all make sense for me before I set sail....
analysis paralysis????
First off, you need to see if you can find the owners. Once you find them, you can move forward. I'm not sure how it works if you can't find them, maybe someone else here knows what to do in that situation??
the mortgage holder will probably bid amount owed plus costs which couild be close to $80,000 belive it or not. You should go to the sale just to observe if interseted in these types of purchases. Most sales are 10% certified funds the time of sale with balance in 3 to 30 days. You usually get a bill of sale the day of sale and deed at closing. You will be responsible to evict if necessary