I feel special this morning I have been quoted.
First don't expect to find a lot of good houses that only need some paint.
If a home has a mortgage on it, the lending company will almost always ( and I said almost) pay the taxes and then add that to the deliquent bill and then foreclose and then they sale the house as a foreclosure.
So what you normally get is a house where someone died and no one paid the taxes, or where someone is so poor they can't afford to pay the taxes.
( and then you have to be the bad guy and evict them from their home of many years)
But normally you find empty lots or abandoned houses with no windows, holes in the roof and so on.
I have gotten several in areas where holes in the roof where crack dealers were sleeping and the such. If you live in a area where the bulding inspector does not bother you much, you may be OK, but in a area with a strict buidling inspector it can be different, if there is proof of crack residue in the house, guess what special crews to clean it up, if there is mold, guess what you have to pay a special person to test for it, to see if it is above certain levels and so on.
And the next real problem is you have no idea which of the properies listed will sell, since the people can pay their taxes till the morning of the sale. So if you have a list of lets say 200 property that are listed, only 30 or so may actually sale that morning, so if you go and look at them ahead of time, you can wastes weeks of searching for them to find none of the ones you wanted are for sale.
And then where do you live ( OK, I don't know all of the state laws) but some places have a redemption period where the past owner can still get it back from you by paying the amount you paid, plus interest plus improvements. ( the actual cost of improvements) so you put 20,000 into it, they come back pay the money you paid at the sale plus 10 percent interest on that amount and pays your 20,000 back, you make almost no profit.
About 1/2 of the properties I buy are redeemed, so I never do anything to them during that period. Now some states give you a title at the time of sale, not a tax certificate, so you will have to talk to the property tax department and ask them if you get clear title at sale or not.
Now don't feel too bad, if you buy an empty lot for 1000 and it is worth 15000 it is still a good profit for doing nothing but clearing a lot.
If you buy a lot with a old house lets say in Atlanta GA for taxes for 4000, and you pay 10,000 to tear the house down and the property sales for 60,000 you do better than fixing the house up. ** yes it does work that easy if you luck onto the right property.
Next the fliping is not near as easy as it looks on TV, you need to really find a good neighborhood and find the worst house in that area.
If you buy a bad house in a bad neighbor you are never getting larger dollars.
Let me give my current home for example, we found a home that the bank foreclosed on when the family went bankrupt. It is a 3 bedroom two bath in a up scale subdivision. The bank was holding out for full value and turned down several offers of 90,000 to 100,000. It sat empty for 6 years and no offer for the last 3 years
We finally bought it for about 65,000 Add landscaping, new carpet and some fresh paint we should be able to sell it for about 120,000 now.
But of course we are now living in it, and don't plan to sell right now.
But for everyone you see on TV where they make 50,000 a house, there are those who loose money also. This is not a poor mans hobby.
And if you don't have your own real estate sale company, remember from those "profits" you see listed on TV someone is paying that real estate sales commssion also.
Not saying it does not work, but I will be honest most of my "flips" were all flops,
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