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…
I am curious. I will be investing in real estate soon for the first time. An interest has accured to me about flipping properties. And so my question is, can you flip properties using foreclosure property? If yes, are homes good to flip or is a residential unit, building better or either do both? Also, How would I flip these properties to an investor? Here is the asking price of one that was listed - Price: $73,500 / Type: Residential Unit, Building. Can I flip this? I would appreciate anyone’s answer and opinion. Oh, By the way the company listed is through FNMA And the contact is :Real Estate Owned Dept. Thank you all for your responses.
Re: Can you flip properties using foreclosure property? If yes, are homes good to flip or… - Posted by Bill K. - FL
Posted by Bill K. - FL on February 13, 2000 at 10:01:23:
KFB,
You can flip REOs. While it is true most lenders will not allow assignment that is easily overcome by using a simultaneous closing. You must take into account all the closing costs involved on a double transaction. I would stick with single family houses mainly because there are more of them and the resale market is broader. I only do them this way. The money for the deal comes from my buyer. My risk is limited to my deposit only.