US forclosures

[loewencc]

I have family investing in US forclosure property... buying property outright (name on title) for $20,000 and doing rent to own for 12-18 months when they will sell for $40,000
Double your money in 12-18 months...sounds pretty good!!
www.mohawkreo.com
Any feedback or advise on this type of investment?
seems like a great way to build some seed capital... short term.
Any insights would be appreciated.
Corene Loewen

 

[RedlineBrett]

What assurances are there on the $40k? in 12-18 months?
If property is so cheap they can buy outright for $20k what area are we talking about?
how are there going to be buyers willing to pay twice that price?
Are these RTO tenants going to be good equity builders?
Is it going to be your family that is managing the property and making sure cheques are coming in?
How are they going to pre-approve buyers to make sure they can close at the back end?
What kind of deposit are the RTO tenants going to be making?

Lots of questions to be answered for that.. make sure the biz fundamentals are good!

Regardless of how cheap property might look in the US I still think the fundamentals are better in Canada.. Prices are dropping in the states for a reason - they were never worth the high prices being paid to begin with!

QUOTE (loewencc @ Jun 9 2008, 10:15 PM) I have family investing in US forclosure property... buying property outright (name on title) for $20,000 and doing rent to own for 12-18 months when they will sell for $40,000
Double your money in 12-18 months...sounds pretty good!!
www.mohawkreo.com
Any feedback or advise on this type of investment?
seems like a great way to build some seed capital... short term.
Any insights would be appreciated.
Corene Loewen