Posted by bill (oh) on February 12, 2000 at 04:59:08:
Can you flip foreclosures? Maybe, depending on who owns it and what terms they have. A lot of companies will not allow a contract to be assigned (which is what you do with a flip). That means that you will have to close in your name and then sell the property.
Another problem with foreclosures is the time it often takes to close the loan to buy them. It can take you three or four months to finish the process----which means you are losing money because you are tied up for so long.
Still, some banks and other institutional REO owners have terms that are hard to beat----such as nothing down and very low prices. What do you look for to flip? Find out who your buyers are and what they want first—then you have the answer. And as a last word of advice, don’t buy anything that you can’t hang onto for several months and make money on while you find a buyer. You just never know when the market for the buyers you want will sour on you making it difficult to unload the property…