Are Forcloser Houses a Good Investment & can you actually buy them with less than 10,000 where and how exactly

EthanR answered one year ago …

Chris, I am both an investor and Realtor who specializes in buying foreclosures in Florida. Your question is very broad, but I will do my best to give you some answers.

Yes, you can buy them with less than $10,000. I don't know if you mean total price of $10,000 or that 10k is your down payment. I think as down payment, yes, below $10,000 in total price, you can in some areas, but you will need to spend a lot more on repairs. The usual down payment required for investment property is 10% or more, so you could buy a $60,000 property with $6000 down, then use the $4000 left for closing costs and repairs or improvements.

First thing to do is get pre-qualified for a mortgage. If you don't qualify as an investor (need very high credit score), then get qualified as owner occupant (assuming you don't already own a home). You can always live in the home for a year or two, then rent it out.

Contact the Board of Realtors in your area and ask them who they can recommend as a Realtor who specializes in foreclosures. Use the link below to find the Realtor board in your area.

http://rodomino.realtor.org/rodesign.nsf/pages/FS_FASSOC?OpenDocument

My next suggestion is to take out several books from the library or buy them from amazon.com on buying foreclosures, landlording, etc. Do not try to flip houses in this poor real estate market, you will lose your shirt! Instead, this has become a great time to pick up houses in some areas for dirt cheap and hold them long term as rentals. That's how the biggest money is made in real estate, unless you are Donald Trump buying $40 million dollar homes and re-selling them for $100 million!
You might also want to read my article from last Friday's www.ThetycoonReport.com, which dealt with this very subject. Best of luck.