QUOTE (ThomasBeyer @ Aug 9 2010, 11:38 AM) Having bid on two multi-family properties via the courts recently, and being currently involved in 4 possible foreclosed land transactions, here is my view on court ordered sales, receivership sales or foreclosures:upside: price below market, possibly well below market
downside:
a) lots of cash required
b) sold "as is where is" with substantial risk of unknown or undisclosed major deficiencies
c) hard to get a mortgage initially, thus close in cash .. then add mortgage later
d) others may outbid you at the court house after you spend a lot of time and money on due diligence
e) court usually sides with owner, gives him lots of leeway and time to come up with cash, so you might not get it after you spend a lot of time and money on due diligence
f) intimate understanding of asset class, value and area required i.e. you must know what "a deal" is and what is just a discount for risk
g) intimate understanding of work required after purchase to bring value to property
Hello Thomas,
Very well said. Again, thank you very much for always being there giving advices and sharing experiences to everyone when they are mostly needed especially by rookie like me.
Thanks again.
Regards,
TonyM
