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US foreclosed homes - an investment?

3655 Views 6 Replies 7 Participants Last post by  rbabi18
My buddy went to a seminar in Toronto last month - and it is coming around again.

He's very set on real estate as investments - which I don't normally subscribe to - they are illiquid, there are many transaction costs, etc etc.

So - the pitch from Pinnacle Property Solutions (based in the US) is that they have a pool of bank-foreclosed homes bought at auction - they will resell them to you for different process, based on condition ... and for Canadians, there is an add-on package that deals with administration, title issues, THEN advertising to find renters ... and eventual sale.

Given the huge gap between the 'wholesale' price (nominal $21K American buy-in) and the represented average selling prices ($50K+) ... this seems like it might be a good opportunity.

It's not often we see a house price so low, eh?

Would love to get back some of the lost paper-money in my portfolio of late.

BUT - concerns about property management, title actually clearing ...???
Just askin' :confused:
Worth a visit to North York?

A link to the outfit bringing them to Canada;

Their main site (a bit opaque)
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The reason they're up here in Canada with that deal is they ran out of rubes in the US to sell that deal to. There are potential huge down sides (suddenly owning a house with liens and mortgages still attached). Do a lot of research online before writing a check. You might be on the hook for a lot more cash than your investment.
It is a pain in the @ss having a rental property that far away. I keep mine to within a 15 min drive.
You should be very careful with any deals involving real estate especially if they are out of your country of residence. You also need to consider any tax implications of this purchase (talk to an accountant about that). Finally make sure that you understand the responsibilities that you'll be taking on as a landlord.
Why do these promoters want to give us the fruits of their labour?
I think real estate in the US is a great buy.

Don't trust those shysters with 1 cent of your dough

If you want to buy

Go to the states and do your due diligence and buy.

Make sure you know the rental laws, good property manager, good contractors and rent it out.

Also I believe there are US laws about rental income and taxation.

Also area is much more important than it is here as well as crime rates. My SO is from a small town of 20,000 people in Texas and the crime rate is 3 times what it is here in Toronto
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You must be prepared to hold on to them between 2-5 years before you can sell them for some kind of profit. So if you have a great way to find high quality tenants in the states, its a great way to make money. Otherwise you might want to wait a while and invest in something more secure for about 5 years. Hope that helps!
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