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The Six Risks of Buying Foreclosures

By
Industry Observer TN LIC# 290452

 

                                                                                                                                     6 risks

There are six risks:
1. The physical condition of the property.
2. The future value of the neighborhood.
3. The interests rates that you have to pay for your loan.
4. The rental rates you have to worry about charging your tenants.
5. Whether of not the property is marketable and has liquidity.
6. Events that are going to take place in the future.

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Comments(5)

Roland Woodworth
Blue Cord Realty - Clarksville, TN
Blue Cord Realty
David: Always a risk involved. Some think they get better deals on foreclosures.. but not always the case
Apr 12, 2008 05:10 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

David,

Except to some extent to number 1, the rest is true to a purchase of any house, not a foreclosure as well. These are not specific to foreclosure.

Apr 12, 2008 05:20 PM
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management
And I would add that if the price is low enough, any physical problem can be overcome.
Apr 12, 2008 05:22 PM
Dawn Workman
Veracity Real Estate Group, LLC - Camas, WA
Camas Real Estate Expert, MBA, 480-540-8100
These seem to be risks associated to buying all homes regardless of being owned by the bank or by your best friend.  I am finding a lot of people are afraid of the foreclosures, but also a lot are getting some incredible deals!
Apr 12, 2008 05:41 PM
David Saks
Memphis, TN
Broker / Industry Analyst

Thank you Jon, Robert, Dawn. Sorry for the late reply.

Oct 22, 2008 06:30 PM