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Friday, August 20, 2010

A story on buying and flipping foreclosed homes

by Calculated Risk on 8/20/2010 08:37:00 AM

Here is a story from Walter Hamilton and Alejandro Lazo at the LA Times on the growing number of investors trying to buy and flip foreclosed homes at the court house steps: Professional investors move into flipping foreclosed homes

On a recent day, [Bruce] Norris steered his sport utility vehicle into the driveway of a 3,300-square-foot McMansion on a corner lot in Moreno Valley. The front lawn was brown and the backyard was littered with garbage. But the windows were intact and there was no visible damage -- far better than many foreclosures.

Aiming for an all-important look inside, Norris rang the doorbell and delivered the bad news to the teenage boy who answered the door that the home was scheduled to be sold that day.

"Do you mind if I poke around a little bit to see what kind of condition it's in?" Norris asked, angling his body to get a glimpse of the living room.
In the end, no one bought the home. The sale was delayed after the owner filed for bankruptcy protection.