Foreclosure Real Estate Business?
I am going into the business of buying foreclosed homes before they go to auction directly from the owners. I have a couple questions.
How Profitable is this business? (General Overview)
How much money is needed for investment to start this business?
How long does it take to start up this business with all the components in place?
Would you reccomend hiring an accountant and real estate agent? Or do those things yourself, i am fairly skilled at accouning.
I would prefer responses from individuals who are doing the same thing or work in real estate.
Thanks in advance for your responses.
Washington has just passed new laws which go into effect June 12, 2008 regarding “Distressed Homeowners”. While still in it’s infancy, it provides that if a homeowner is taken advantage of (from someone claiming to save them from foreclosure), they may seek double or triple damages.
I’m not implying that you will be “equity skimming” by any means, but this might become an extremely risky venture. There may be required disclosures on your part. Research the laws and keep abreast of them for your state to insure you are in compliance and not faced with future damages from a homeowner that later claims you may have had an unfair advantage.
When I googled “Distressed Homeowners”, I noticed that Florida, Texas, New York are also implementing similar laws. Other states will be soon to follow suit. This article has links to states with similar laws: http://www.consumeraffairs.com/news04/20…