Safest ways to buy a foreclosure

Bruce Norris is buying foreclosure homes. Not one, not two, but hopefully 100 of them by the end of the year and mostly in the Inland Empire. Bruce figures he can make a lot of money by buying at bargain prices.

"The lender was owed approximately $320,000 on this house and we bought it for $54,000. When you look around you can see why it was $54,000," said Norris.

So buying cheap means putting the house through a complete makeover. Many of these homes need to be gutted.

And when it's all done, one of his homes will look new.

Just finished it's selling for $165,000 and got immediate attention from a buyer.

"We've been looking all day and this is the nicest one," said Lanika Alexander.

If you think buying foreclosures is for you, here's some advice.

First off, no bank will lend money on a home that is this trashed. So even though it seems like a good price at $54,000, you will need cash to buy it.

Secondly, to get a buyer's attention you will need to do a lot of work outside as well as inside. Bruce spends about $30,000 on each house.

Plus you need good labor to get the job done right because a home may be in worse shape than you think.

"We've bought houses where they cut the wires out of the attic. We had to rewire the house and that wasn't part of the budget," said Norris.

Lastly, you will not be the only one bidding on the house, so it will take plenty of patience before you find the right one.

"We make a lot of offers. We made 1,400 offers to buy 47 houses in 2008," said Norris.

Before you buy any home, and especially a foreclosure, make sure you get it inspected by a professional. They can spot expensive damage or repairs ahead of time.



Copyright © 2023 KABC Television, LLC. All rights reserved.