Foreclosure Flipper

The Prey: Uninformed Average Joe or Jane trying to get rich quick.

The Bait: Attractive people and numbers too good to be true. 

The Catch: It’s just not that easy.

We’ve all seen them, those real estate informercials with the older professional looking guy and the good looking man & woman asking stupid obviously scripted questions about buying and selling houses.  The professional provides example after example of houses that were bought low and sold high.  “Is it really that easy.” “Yes Bob, it really is that easy”…yada yada yada.  Well I say its time we stop letting these vultures prey on ignorant, minimum wage, sleepless, people with promises of riches.  PAY ATTENTION & PASS IT ON: REAL ESTATE INVESTING IS NOT EASY.  It takes a lot of research and understanding of the market and the buying and selling process.  Only if you are willing to invest your time into learning about foreclosures, and other types of real estate, should you attempt the business of foreclosure flipping.  Many foreclosed properties are sold at courthouses on a weekly basis, but there is a reason you don’t see any average joe bidding on the homes.  Typically you will see professional investors at these auctions because it requires a lot of experience to know what to bid. You’ll almost never get to check out the inside of the foreclosed home before the auction, so you will not know what condition it truly is in. You also need to research whether the previous owner has any debt, because it is possible that by buying a house at auction you could incurr this debt.  If you are planning on living in the home while you fix it up to sell, be careful what you buy.  The foreclosures can be next to uninhabitable before they receive repairs.  Also, be prepaired to pay at least 10% of the bid the day of the auction, as well as financing a mortgage within 30 days.  Most banks will not help you when foreclosed property is involved.

There is a whole lot that you need to think about before dialing that 800 number. Most of which is not even mentioned above.  You do not want to find yourself in an even worse financial situation.  With all this said of course I still encourage any business entrepreneur to chase that ultimate flip.  Just, BE CAREFUL, and fully research everything you are getting yourself into.  Good luck!