Caveat Emptor- Buyer Beware

Deal or No Deal

Usually when a property is in short sale or foreclosure they may be concerned to be distressed properties.  This maybe the easiest way to make instant equality but the Latin term Caveat Emptor may apply.  Which means buyer beware.  This property usually is sold as is.  It may require many updates or repairs.  Sometimes cash is the only way to finance these properties.  If you have the skill and time these properties can be resold for a great profit.  

Things to Think About-

• Hire an experience Realtor®
• Hire an excellent Inspector (they can give you an idea of repair cost)
• Have Cash (most foreclosure are bought by investors who have cash)
• No Cash get Pre-qualified on your home loan (may want to have a large earnest deposit and large down-payment
• Get a network of trustworthy contractors
• Make sure existing improvements have been permitted (or it's then your can of worms)
• Make a budget of needed repairs
• Be patient-if a property has entered foreclosure there maybe a lot of paperwork involved and time waiting