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This is a buyer beware.
Everyone talks about foreclosures, everyone talks about auction properties.
“They’re sexy, they’re cheap, and you can get in the business in an easier way.”
However, buyer beware. If you’re purchasing a foreclosure asset, do you know what the details of the property are? What does the infrastructure of the property look like? What amendments or renovations are going to be required of you?
A lot of those things do not have to be disclosed in the purchase, so when you get the asset you may have to evict the tenant that is a holdout, you may have to completely overhaul the foundation and/or the electrical or the plumbing.
So if you are looking to invest in real estate, be very careful and/ or have representation that can advise you on what purchase you should make, what asset is going to be working well for you, because if you’re not a construction guy or woman, if you’re not knowledgeable about New York City tenant rights, you may end up in a situation that’ll cost you 10 times the price you bought that property for.