Buying Foreclosures

For real estate investors, foreclosures can be a source of properties to buy.   Founder/Managing Partner Lamar Hunt Jr. knows however there are sometimes pitfalls and obstacles with foreclosures.  “First, gaining access to them can be a challenge.  I would never buy a property that I couldn’t inspect although for some reason, investors sometimes do.  Next, you may be bidding against investors who have no other source of properties to buy and they will often dramatically overpay for a foreclosure.  All of your time assessing the property will be wasted when an inexperienced competitor makes a mistake.  Also, banks selling the foreclosure may have unrealistic expectations when deciding on a price for the property.  Sometimes, the bank will hold the properties for years while waiting for the right price.  They may not be willing to take a big discount because of accounting rules which may require them to discount other properties in the same area or they do not want to take certain losses in a particular quarter.  So, just know that you may encounter headwinds trying to buy foreclosures.”  For more real estate tips on buying property, see our blog at  http://lorettoproperties.com/.  You can also call us at 913-236-2902 if you have a house to sell or know someone who does.