| There are plenty of reasons why people would want | | | | tenant and nobody wants to buy it from me at ANY |
| to buy now during this real estate downturn and | | | | price. |
| foreclosure melee. Statistically, in fact, people have | | | | Consider this next example. An agent comes to you |
| made their fortunes by buying when everyone else is | | | | to tell you that a development project is the "land of |
| selling. It's especially true when there are so many | | | | opportunity", whether in foreclosure or not. The agent |
| people "on the fence". | | | | even tells you that he / she had also put up their own |
| However, there are many things to consider before | | | | money into the project ... that's how convinced he / |
| jumping into the real estate foreclosure market. Many | | | | she was in this project." BIG RED FLAG ... No agent |
| people have also lost fortunes because they were | | | | should need to tell you they have money in the project |
| careless and did not do their homework. | | | | to convince you that it is a good deal. I personally have |
| Understanding real estate fundamentals is especially | | | | been burned on this type of "opportunity". I've also |
| true during a foreclosure boom, just as they were | | | | heard from many people with similar horror stories. |
| during the real estate upswing. Having been personally | | | | People are drawn to the "get rich quick" ideas and |
| burned during the heady real estate days, I can | | | | often put their logic aside because of the dollar signs. |
| honestly say that anyone considering buying | | | | Another old adage says that "if it seems too good to |
| foreclosure properties should arm themselves with the | | | | be true, it probably is." |
| facts before committing to the purchase. | | | | Here's another example of the risks associated with |
| There are plenty of reasons to be cautious about | | | | buying a foreclosure. Most people don't bother to read |
| buying a foreclosure property. The number one reason | | | | the fine print. This might include disclosures or title |
| to be cautious is that there are as many dis-honest | | | | reports. Why is this important? Consider the example |
| agents out there as there are honest ones. In fact, | | | | of a property owner who did not make his / her city |
| they will tell you anything to get you to commit, | | | | utility payments for several years. You might make an |
| obviously because they get a commission. And, of | | | | offer on a foreclosure property "as is". Once you take |
| course, if there is a bidding war (yes these are | | | | it over, you would be liable for back payments of |
| happening now on the foreclosure buying front), they | | | | thousands of dollars. Yes, that's happened to me, as |
| make even more! | | | | well ... several thousands of unpaid utility bills were rolled |
| 30 years ago, my father told me, but I didn't listen (who | | | | into the property taxes. |
| does?), that in real estate it's all about Location, | | | | There are plenty more risks to consider when buying |
| Location, Location. If your foreclosure agent is telling | | | | foreclosures properties. On the other hand, if you |
| you it's a great deal ... it very well may be ... but is it | | | | understand the foreclosure risks, read the fine print, |
| perhaps that nobody else wants to buy there? For | | | | and study the fundamentals, you could end up rich ... |
| example, I was scammed into a property in a terrible | | | | someday! Follow my blog, The Top 10 Gotchas In |
| neighborhood in California. Worse, my deal was not | | | | Buying Foreclosures, at 24x7housebuyer. |
| necessarily a "good" deal. Now, I have a deadbeat | | | | |