I started writing an article this week that went over investing terms and rules like the 70% rule and ARV.
After about two paragraphs I was bored out of my mind and I decided to write about something more fun and leave that article for another time. After last week’s article about the economy, I needed something fun to write about anyway. Here is a story about a house my father and I bought back in 2004 as a fix and flip. The situation was not much fun at the time it happened, but everything worked out okay and it was a good learning experience.
Our Foreclosure System in 2004
Back in 2004 our market in Colorado was just past it’s peak and our county was about to lead the nation in foreclosures. We had an abundance of builders and building going on in the area, much more than the population and local economy could support. There were plenty of foreclosures available back then in our area and we purchased our fix and flips almost exclusively from the Public Trustee foreclosure sale. The Public Trustee had different rules back then and there were many tricks to getting a good deal at the sale. At the time, there was a 75 day owner redemption period after the foreclosure sale. Junior lien holders could also redeem the home after the foreclosure sale, which made for an interesting 75 days. We would bid on the homes at the sale and then wait to see if anyone redeemed or …read more