What is your Real Estate Acquisition Strategy with Foreclosures?
Trustee’s sale (foreclosure auction)REO (real estate owned or bank/lender owned)Short Sale I’ve used other acquisition strategies in the past – wholesale, probate, assignment, normal. My all-encompassing real estate acquisition strategy is PURCHASE ANY HOUSE THAT MEETS MY PREDEFINED BUYING CRITERIA. If it’s a deal, it’s a deal. It’s not important how I bought the house, or from whom. It really shouldn’t matter to you either.
I wouldn’t be comfortable with someone referring to me as an expert. – unless it had do with cereal or cheap red wine. In the last month I’ve bought 5 houses using 3 different acquisition strategies:
Just decide on the following, in advance of your next fix and flip purchase:
Property type (single-family detached, condo, multi-family)Approximate size Wholesale purchase price Retail sales price Rehab costs Profit expectations. For example, I want to buy a minimum 3 bedroom, 2 bathroom home with a 2 car garage between 1,500 – 4,000 square feet.
The minimum wholesale price I can expect to pay is $140,000 and goes up to $300,000. Ideally, the retail price of my flips will range from $200,000 to $450,000. I don’t want to spend more than $20,000 on rehab and like to net 8-10% profit on the retail sales price of the house.With this criteria in place I can more objectively analyze a deal brought to me by a bird dog, wholesaler or Realtor.