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Can i buy a foreclosure home 30,000 and sell it to a investor for 50000 that same month?

I am about to get a good settlement and want to invest in this foreclosure homes. I heard u can go and buy some at ur local banks, but can i sell it the same month to a investor for double the amount? Some investors don’t even look at the house, they just give a price based on the year and how much it may be in the market.


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  1. foreclosurefish_com
    May 22nd, 2010 at 14:10 | #1

    In Illinois and some other states, this practice is illegal under certain circumstances. If your plan is to buy homes directly from foreclosure victims and then resell them immediately for a profit, it would be illegal in certain areas. This is basically an equity skimming scam and if you are caught, you could get in serious trouble.

    This has become a serious problem, because investors convince foreclosure victims to sell their home at a very low cost. They do this and claim to be helping these people avoid foreclosure. In reality, they are hurting these people and making it much harder for them to recover from foreclosure.

    I believe if you are purchasing from the lender/REO/Trustee these laws would not apply.

    But as another poster said, why would someone pay you so much for that home, when they could have just as easily purchased it for the lower price themselves.

    Based on your knowledge of real estate and the current real estate market, I would highly recommend investing your "good settlement" elsewhere. There are plenty of "get rich quick" real estate/foreclosure schemes out there, but most are bogus and could end up costing you everything!

    I have worked full time in the foreclosure industry for over 10 years now and I know more people who have lost money on foreclosure properties than have made money. Foreclosure investing is risky business and requires a lot of knowledge and patience.

    If you want to try the market out and you can afford to lose $30,000, then give it a shot. You may get lucky and you may find a buyer, but don’t do it unless you can afford to have that money tied up for a long time or completely lost.

    You should also plan on spending additional money on repairs or improvements. If the lender is selling the home for $30,000, then it’s probably because it needs repairs or it’s only worth $30,000. You might need to take care of the repairs/improvements yourself to sell it for $50,000.

    Good luck!

  2. anonimitie
    May 22nd, 2010 at 14:10 | #2

    You can buy it and sell it moments later with the buyer sitting beside you for six times as much. The moment it’s legally your asset, you can sell it. The only limits are processing times.

    I think your kidding yourself about actually making those kinds of returns but, there’s nothing illegal about it.

  3. Hector
    May 22nd, 2010 at 14:10 | #3

    You can do that. But what keeps the investor from going to the same banks you went to?

  4. Leo F
    May 22nd, 2010 at 14:10 | #4

    Not sure where your getting your information about investors not looking at the house. First you cant go the the banks and buy a house, they list REO with RE brokers who sell the homes for them. Why would anyone pay you 50K for a home they could buy for 30K, they may pay you a finders fee. If anyone buying your so called 30K home is getting a loan then their would be more red flags than you want. This would appear to be a flipping scam.

  5. Alex
    May 22nd, 2010 at 14:10 | #5

    Depends how good of a deal you got and realistically what that home is currently worth. But its sounds to good to be true.

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