Another great day in Michigan

It was sunny, warm in Michigan but I am going off on a tangent here. I got a call from a close friend about buying foreclosures. He has been laid off and is collecting unemployment. He has some money in the bank that he is thinking about buying metro Detroit foreclosures. He wants to fix them up and then sell them.

As a Metro Detroit real estate agent I have to say....PROCEED WITH CAUTION. The reason I say this:

1. Don't spend your rainy day money to take a gamble on making money. This is not the economy to be taking chances with your cash that you may need.
2. It is very possible that our Metro Detroit real estate home values may drop. So you could buy a home fix it up and then it could end up being worth as less than the price you have into it. I know many experienced investors that have had this happen to them.
3. Be sure to over estimate the costs of repairs and don't over improve the house for the area. Too many times new investors spend too much on the home. Or under estimate the costs of fixing it up.

There is money to be made in foreclosures for investors. The key is to buy foreclosures right, estimate the costs to repair correctly, do the work quickly, and get the house resold as quickly as possible.

That just my little bit advice. I want you to survive thru these tough times, not get further into more trouble

To get the latest metro Detroit foreclosures emailed to you so you don't miss out on the bargains join my Metro Detroit foreclosure VIP club or my Oakland County lake homes club

Russ Ravary your Oakland and Wayne County real estate specialist