How Do You Buy A Home For Pennies On The Dollar?
Buying a home today at a big discount is easy; making it a profitable purchase is a bit more difficult. With short sales, tax sales, foreclosure auctions and bank-owned discount offerings, the options are enticing. Buying real estate at an auction is one of my favorite strategies, but it does come with some risks. First, you need cash or access to cash. Typically you will be required to pay 10% of the accepted bid at the time of the auction. Usually within 30 days you are required to pay the full amount. In the past, I have used “hard money lenders” who are folks that specialize in short term real estate lending-when the purchase price of the home does not exceed 65% of market value. Expect to pay healthy interest rates, so if you have your own cash, use it. Another major risk is the condition of an auction property. Usually a home that has reached auction stage has been vacant for some time and the combination of time and vacancy cause a home to deteriorate quickly. In addition, acces
