When your buying a home at a trustee sale there are many things things that need to be considered. You usually have just a day or two to collect this information.
1. Make sure you know what lien you are bidding on. Some homes that you bid on are not the first lien, they are actually a second lien. So always be informed. You can find this information through a title company.
2. Make sure that you know if the property is occupied or vacant. If the property is occupied, you will have to have a plan to evict them once you own the home. Cash for keys usually works well.
3. Get a realtor to comp the property, and know exactly what you can sell it for. In the newer subdivisions make sure your comps are in the same subdivision. And if there are multiple builders, try to use the same builder if you can. I just listed a home that had this issue. The subdivision comps came up with a sales price $10,000 under what I wanted to list it for. However, after more research, the homes built by the builder of my listing sold for $10k more than the other builders in that subdivision.
4. Know your construction cost. You may not know exactly what your total costs will be, but you should have a good idea.
5. You are usually responsible for the back taxes on the property. Getting a preliminary title search from a title company will inform you of any back taxes.
6. Know the days on market for your property. Keep in mind you need to own it for at least 90 days for FHA financing. You can get conventional or Va financing immediately.
7. Always look for the properties that has a minimum bid that you like and or no minimum.
8. Always get a good Idea of the spread (difference of all your cost - the sales price) so you can have a pretty good idea of what you can make on that property.
These are a few things that need to be considered when buying at the trustee sales. You will get the lower prices at these auctions. Tha MlS can also get you the same type of result it just takes longer to get.
I do have a great program that is totally turn key and will do all this work for you. just sign in below. Just email and say I want the Turn Key Trustee system.
1. Make sure you know what lien you are bidding on. Some homes that you bid on are not the first lien, they are actually a second lien. So always be informed. You can find this information through a title company.
2. Make sure that you know if the property is occupied or vacant. If the property is occupied, you will have to have a plan to evict them once you own the home. Cash for keys usually works well.
3. Get a realtor to comp the property, and know exactly what you can sell it for. In the newer subdivisions make sure your comps are in the same subdivision. And if there are multiple builders, try to use the same builder if you can. I just listed a home that had this issue. The subdivision comps came up with a sales price $10,000 under what I wanted to list it for. However, after more research, the homes built by the builder of my listing sold for $10k more than the other builders in that subdivision.
4. Know your construction cost. You may not know exactly what your total costs will be, but you should have a good idea.
5. You are usually responsible for the back taxes on the property. Getting a preliminary title search from a title company will inform you of any back taxes.
6. Know the days on market for your property. Keep in mind you need to own it for at least 90 days for FHA financing. You can get conventional or Va financing immediately.
7. Always look for the properties that has a minimum bid that you like and or no minimum.
8. Always get a good Idea of the spread (difference of all your cost - the sales price) so you can have a pretty good idea of what you can make on that property.
These are a few things that need to be considered when buying at the trustee sales. You will get the lower prices at these auctions. Tha MlS can also get you the same type of result it just takes longer to get.
I do have a great program that is totally turn key and will do all this work for you. just sign in below. Just email and say I want the Turn Key Trustee system.
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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com
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