Properties with equity would seem to be better targets, but maybe banks don’t care? Would welcome any thoughts/tips/experiences. Thanks.
At this stage of the game it is all about opening bids not necessarily equity. Most homes in foreclosure in this market have substantial negative equity. You want to focus and find your specific niche and then watch for the properties that the banks substantially discount the opening bid. We have seen some that that are discounting the opening bid from the published bid by 50% or more depending on the area. You may want to focus on a particular area, property age or size, or estimated value. If all other investors are looking for the mid-sized (1800-200 sq. ft.) newer homes in the 200k-400k price range you may want to get a team together and look at the ugly fixers or the higher end (if you have that capacity). Finding your niche appears to be the hardest part. Then it just comes down to searching, sorting, analyzing and being prepared to bid when the price is right.
Michelle – Thanks for the insight. As you may have guessed, I’m new at this and it’s helpful to get some perspective. Any other tips welcome. Thanks again and best of luck! jw