detroit? wtfs goin on here?!

[stewie]

realtor.com...trusted site..

detroit....you got houses for sale for 1-10g's?!?! how is everyone not scooping these up?!?!??

anyone know where else these forclosed houses are being sold cheap for?
im interested in maybe buying some land....

http://www.realtor.com/search/search...3F&ml=8&fhpg=3

[cp[mike]]

holy cheapness! a whole house/property for less than half of what i paid for my car... these places GOTTA need some serious work, but still.... sheesh

[bobbycos]

in some areas where the economy has DIED !!!

[stewie]

even still if the economy has died...why sell for so cheap...hold onto it fora while...its bound to go up sooner or later...

[evil_demon_01]

Damn If I lived there I would buy one, fix it up and make some coin off it, then buy 2 and do the same thing again.

$10,000 just doesn't sound right though, theres got to be some sort of catch (like money oweing on the house)
Or a serious amount of work that needs to be done.

[C91BLX7]

Its probably in some shit hole ghost town/ghetto

[Makaveli2k]

It's Detroit... I don't think any more explanation is needed. =p

[NutBucket]

Its probably in some shit hole ghost town/ghetto

This

[owequitit]

Houses like this are available in quite a number of places around the country.

Yes, they are really $1,000-10,000. There are no "strings" attached.

They are foreclosures that the banks need to get rid of becuase it costs money to keep them around. If it is in the bank's posession, then they have to pay maintenance costs property taxes etc. That is not what they do. It is more cost effective for them to write it off and sell it at a loss than maintain thousands of properties. Often, this occurs when the house was foreclosed, listed and did not sell, then auctioned and did not sell, and now relisted again.

In most cases, you are actually paying part of the agent's commission, and then the bank has to give the bank more money above and beyond what you did, to make the deal even and pay the real estate agent off.

Here is the "catch", if you could even call it that. These are typically smaller homes. Not always, as there is a 4 bed 1.5 bath with a seperate garage that I saw today for $1900. I forget if it was in Cleveland or Detroit. Eitherway, most of these houses need substantial work. But you figure, in many cases, they can be fully overhauled for $20,000 which could potentially be a fraction of what they are worth when the market recovers. However, you must also be careful, because many of them are in bad or older not so good neighborhoods and are surrounded by other dilapidated wrecks. However, if people start buying en masse, and fixing these neighborhoods, then you could potentially make bank. If you were somehow able to buy entire blocks (which at $1,000 a peice wouldn't be difficult), you could rejuvenate entire neighborhoods and turn them into nice places for families to live.

The real kicker?

HUD has a program that was signed by Bush back in the summer to allow $4 billion dollars in money to help people come up with down payments to buy a house.

People don't understand that banks are businesses too, and while they deal with money, they don't OWN the money. If these houses continue to stack up, then the banks stand the risk of going out of business too. Foreclosed homes are not to anybodies advantage except for the potential buyer.

[evil_demon_01]

It's Detroit... I don't think any more explanation is needed. =p

Even still, In 5 years it will be worth more that 10k.
It would be a good investment for a young person.
I'd sell my CB, buy it, wait 5 years then sell it off If I lived over there and diddn't already own my house.

[evil_demon_01]

Houses like this are available in quite a number of places around the country.

Yes, they are really $1,000-10,000. There are no "strings" attached.

They are foreclosures that the banks need to get rid of becuase it costs money to keep them around. If it is in the bank's posession, then they have to pay maintenance costs property taxes etc. That is not what they do. It is more cost effective for them to write it off and sell it at a loss than maintain thousands of properties. Often, this occurs when the house was foreclosed, listed and did not sell, then auctioned and did not sell, and now relisted again.

In most cases, you are actually paying part of the agent's commission, and then the bank has to give the bank more money above and beyond what you did, to make the deal even and pay the real estate agent off.

Here is the "catch", if you could even call it that. These are typically smaller homes. Not always, as there is a 4 bed 1.5 bath with a seperate garage that I saw today for $1900. I forget if it was in Cleveland or Detroit. Eitherway, most of these houses need substantial work. But you figure, in many cases, they can be fully overhauled for $20,000 which could potentially be a fraction of what they are worth when the market recovers. However, you must also be careful, because many of them are in bad or older not so good neighborhoods and are surrounded by other dilapidated wrecks. However, if people start buying en masse, and fixing these neighborhoods, then you could potentially make bank. If you were somehow able to buy entire blocks (which at $1,000 a peice wouldn't be difficult), you could rejuvenate entire neighborhoods and turn them into nice places for families to live.

The real kicker?

HUD has a program that was signed by Bush back in the summer to allow $4 billion dollars in money to help people come up with down payments to buy a house.

People don't understand that banks are businesses too, and while they deal with money, they don't OWN the money. If these houses continue to stack up, then the banks stand the risk of going out of business too. Foreclosed homes are not to anybodies advantage except for the potential buyer.

Mind you if people start buying them and re-renovating them, you generally get better people in the area, which makes the area better overall. We are starting to see that over here.
The migrants are buying into the bad neighbourhoods cheaply, and effectively pushing out the people in the area that make it a bad neighbourhood.
The banks are really writing them off and taking the loss? I believe you but its still hard to believe that the banks would do that, hence why I said there is probabally money still oweing.

[Lil' Whitie]

there a few houses i have seen on the east side of cleeland for under 10 grand. but they are some not liveable and are in bad neighborhoods.

eas st louis is like that. if ur white ur in trouble there. but houses are super cheap and high chance of getting robbed or jumped anywhere. and no stores or gas stations for miles. only carwaash are still in business

[owequitit]

Even still, In 5 years it will be worth more that 10k.
It would be a good investment for a young person.
I'd sell my CB, buy it, wait 5 years then sell it off If I lived over there and diddn't already own my house.

You have to be careful though. The neighborhood transformation is key, because that house for $1900 was only worth $17,000 something a couple of years ago. Some areas aren't appreciating or holding high values. Detroit and Cleveland are two of them.

[owequitit]

Mind you if people start buying them and re-renovating them, you generally get better people in the area, which makes the area better overall. We are starting to see that over here.
The migrants are buying into the bad neighbourhoods cheaply, and effectively pushing out the people in the area that make it a bad neighbourhood.
The banks are really writing them off and taking the loss? I believe you but its still hard to believe that the banks would do that, hence why I said there is probabally money still oweing.

It is an effective strategy.

And yes, the banks are taking losses on them. They have no choice. They have 1 million more homes expected to come in this year, on top of the 500,000-1,000,000 they already have sitting around. They can't keep them on their books because it is too expensive. They could be looking at 2-10K per year, per house, just in property tax. It is cheaper to sell them at a loss and then write it off on their tax liability.

[evil_demon_01]

You have to be careful though. The neighborhood transformation is key, because that house for $1900 was only worth $17,000 something a couple of years ago. Some areas aren't appreciating or holding high values. Detroit and Cleveland are two of them.

I see, though 1900 now to 17,000 is still well above a 100% gain (more like 1000%) which is good no matter how you look at it (when the market comes back up)

It is an effective strategy.

And yes, the banks are taking losses on them. They have no choice. They have 1 million more homes expected to come in this year, on top of the 500,000-1,000,000 they already have sitting around. They can't keep them on their books because it is too expensive. They could be looking at 2-10K per year, per house, just in property tax. It is cheaper to sell them at a loss and then write it off on their tax liability.

Yea when you look at it on large scale, I guess a loss has to be taken to free up some money, to allow money to be lent out to others.
Which inturn MAKES the money for the banks through interest.