Foreclosure Home for Sale – Making Money from It

A foreclosure home for sale has been a means of recovery from financial difficulty for Bay Area real estate flippers Michael LaOrange and Steven Burris and broker Christopher Stafford.

According to San Francisco-based LaOrange, he has purchased and resold two distressed homes last year, after he decided to take advantage of the foreclosure market when he could not get work in the accounting world.

His partner, Burris, also turned into real estate when he lost his job in 2008. LaOrange added that he and Burris are not the same as other flippers who quickly buy bargain-priced foreclosures and just as quickly sell them at a profit. A big part of their success is their willingness to fix and renovate properties before selling them.

LaOrange is fortunate because he is able to borrow money from his mother when he and his partner need to buy in cash. He and Burris made around $25,000 on the first house they bought and resold. The second house they bought made them more money – around $40,000. They bought a foreclosure home for sale in a good neighborhood in Santa Rosa for $239,000, renovated it and then sold it in five days for $275,000.

The partners lower their investment risk by buying mostly from banks, which give them the opportunity to inspect first the properties before finally signing the purchase contract.

For prospective investors thinking of buying at foreclosure auctions without first inspecting the properties, auctions are being held by courts and trustees in the Bay Area. But according to LaOrange and Burris, they need to do their homework before plunging into the foreclosure buying and selling business.

San Francisco-based broker Stafford is another real estate professional making money from foreclosures. He said that 2009 was his best year, posting his highest sales number in his 17 years in the real estate sector.

Stafford has sold bank repossessed houses in San Francisco and in East Bay, including one bank owned Danville home that was considered wrecked, but was fixed and resold for $1 million.

According to Stafford, LaOrange and other investors, there are still a lot of foreclosure homes and distressed homes in the portfolios of banks, which are waiting for the right time to release them. So anyone who is able to duplicate what LaOrange and other flippers are doing can earn money from a foreclosure home for sale.

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