posted on Oct, 10 2012 @ 01:00 PM
My dad and I recently decided we're going to purchase a house to renovate and flip for profit. We have the skill to do the work ourselves, and we
have the money to buy the property outright. The problem is, we can't find a house. I spend most of my days surfing foreclosure websites punching
in the zip codes we are interested in and the results are very sparse. If we wanted to buy houses in the hood, we'd be up to our knees in
properties, but finding something that is upper/middle class is kind of tough.
Of the homes we've looked at, most are HUD homes, through the Department of Housing and Urban Development. They favor owner occupants over
investors, and force investors to wait 15 days until they can put a bid on the property. And even then, once you put a bid in, it is either rejected
or accepted. You can't really talk to anybody to negotiate. You can't call someone and be like "Hey, there's genitalia drawn on the walls and
huuuuuuge urine stains throughout the house, can we knock a few thousand off?"
We're mostly looking at houses that have cosmetic issues. Trim, carpet, paint, fixtures, re-framing some doors, etc. These houses are just going to
sit on the market for ever, especially when they advertise homes as "move in ready" and show some very deceptively flattering pictures on the
websites. You'd think they'd rather have it go to an investor, instead of just selling it to someone who's probable going to just let it
deteriorate even further.
The second route is just regular bank owned properties. At least there is the advantage of being able to speak with an actual person and negotiate a
price. From what I've been reading though, banks are holding back a ton of properties from the market, for fear of devaluing homes even further.
Thing is though, they are going to have to suck it up at some point anyway, so they may as well start putting more out there. There are only about
five bank owned properties that are worth looking at in the five zip codes were are looking in. That's really low.
And while I was writing this, I was just told that a few of the bank owned properties we were going to look at have a 15 day waiting period for
investors too. Great.