Posts Tagged ‘foreclosures’
14111 Mount Pleasant Drive, Woodbridge
It’s been a while since my last post with all that is going on. Been looking at a lot of junker bank-owned properties lately, and we are hard at work on a 4-bedroom single family home at 14111 Mount Pleasant Drive in Woodbridge, VA.
Like a lot of homes that went to foreclosure, it was in really rough shape when we first took on the project. But the repairs and renovations are going well, and I’m very excited about how it will turn out. It is a pretty well-constructed single family home, and homes in the area were selling in the peak a couple years ago in a range of $250,000 to over $300,000.
I have got to post some of our project photos, so you can see just how much work goes into renovating one of these foreclosure properties! I keep talking about how taking on these repair and renovation issues yourself is a huge and inconvenient endeavor, but a picture speaks a thousand words. Our construction crew is very skilled and professional, but I still wouldn’t want to live in the house with all of this work going on!
Check back next week for photos…
If you are looking to buy a home, add yourself to our email list in order to get information about this, and our other available properties.
Case Study Part 2: Buying a Foreclosure
After five months of looking, Jan and her family were at their wits end. Complicating the situation, the loan amount she was approved for as a single person was in a range where she could only afford the lower-priced houses in her area. The few deals on reasonably good conditioned homes she did find were bid up by other buyers who had the means (maybe) to do the fix-ups needed to the properties. Seeing as many houses as she had, Jan — and even some of the agents she came across — felt that people were overpaying for these bank-owned properties, even though they were discounted from the high-priced market at the peak of the bubble.
Like a Tiger on Steroids: The Buying Foreclosures Real Estate Game
If you are looking to get into the “game” of buying a foreclosure to flip for profit right now, and you don’t have a lot of experience, take a chill pill and tune into ESPN or Oprah. In the world of distressed real estate, including foreclosures, you are playing with a tiger on steroids and very well may get mauled physically, emotionally, and financially. Even experienced real estate investors are having a difficult time with this market, and the numerous uncertainties that go along with our country’s current financial turmoil.
If you are looking for a home to live in, there are still deals to be had out there. But, that tiger on steroids is still lurking for unsuspecting buyers who get all pumped up emotionally about buying a foreclosure. Buying a house often turns into an emotional transaction. And many people who make money on these transactions bank on just that. DON’T, DON’T, DON’T make this an emotional transaction!
Buying Foreclosures — Deal or No Deal
With so many homes going into foreclosure these days, there has been a lot of attention to getting a great foreclosure “deal.” Let’s take a look at what is really going on with this latest real estate rush. I’d like to share my knowledge in order to help you make a smart foreclosure investment, and keep you safe from the common pitfalls of buying a foreclosure home.
Here is what I see from being out there every day looking at properties. The banks lent on all kinds of houses, both new and old. Many of the newer properties that are now bank-owned are in need of minor repairs: paint, carpet, a door here, a window there. You should always remember the saying “buyer beware,” as things like appliances, heating and air conditioning systems, roofs, gutters, garage door openers, and water heaters can go bad even in a newer house. But if you are handy, or have a brother-in-law like the guys on This Old House, you are probably good to go.
Unfortunately, most foreclosure homes are fixer uppers. If a homeowner was unable to make their mortgage payments, they probably weren’t able to pay for all of the necessary repairs or upgrades to their properties either. Sometimes when people realize they’ll be losing their home, they just give up and stop putting any more money into it, letting the problems with the property’s condition just compound. In the worse case scenario, they may even trash the house on purpose out of anger or frustration.
So here you are, all excited about getting a deal on a foreclosure. It is an old house and kind of had a rough life, maybe even some abuse by the previous occupants. Yeah, it is a little dated and the layout is a little obsolete, but your real estate agent told you it will only cost about $20,000 to make it a place of your own. Since you paid such a low price for the house, the extra money isn’t a problem. Piece of cake!
Ever had sheetrock or plaster dust with your morning cereal?
