Buying distressed properties in Charleston
... is not as easy as late night infomercials are likely making it out to be.
I get a phone call or an email every few days from first time home buyers who are very interested in buying foreclosures and short sales throughout the Charleston real estate market. But I wonder, just how much do they really know about buying real estate and where are they getting their information.
Just the other day, a nice guy called and that was exactly what he wanted. After talking further with him, I figured out he didn't realize that you can't just turn your monthly rent payment into the purchase of a house.
He can do one of several things, first, he can go down to the courthouse steps and compete with experienced investors for available foreclosures. Of course, he'll need to understand that the condition will be somewhat less than pristine and the price will likely be more than $395.
Or he could try to buy a foreclosure listed for sale in the Charleston MLS but you still need a job, good credit, appropriate debt to income ratio and a down payment. You have to also account for taxes and insurance by establishing an escrow account. So it really isn't likely that you can buy a $200,000 foreclosure for approximately the equivalent of an $850 per month rent payment.
There are advantageous purchases to be made in the Charleston South Carolina real estate market of both foreclosures as well as from the many motivated sellers who are serious about selling their home. But despite what you may see or hear about in the media or perish the thought, late night infomercials, there are still real costs to buy a home. Don't get caught up in the excitement and if it looks too good to be true, it probably is.
As to short sales, as I've pointed out previously here and here, fuhgetttaboutttttit as they might say in New Jersey.
And don't get me started on seller financing if you don't have any money to put down.