'This book serves as a guide to finding and taking advantage of distress sale situations as well as other situations where there are opportunities to buy at below market price or with favorable financing.'My banker told me a story recently that could serve as the set piece for this book. Because a loan had not been paid, the bank had foreclosed on a forty acre piece of property with a lovely home on it. No one bid at the auction, and the bank took the property for the amount outstanding to it, $95,000. In a private sale, the bank later sold the property for much more than that. You could have bought this property for $95,001 at the foreclosure auction because the bank would not have bid against you. The property was worth hundreds of thousands of dollars. Such opportunities arise almost every day. Yet few explore these avenues for purchasing because they do not know how to do so. This book is an excellent resource for giving you the knowledge to locate such bargains and pursue them.
On the other hand, although the book is written so as to be understandable by the first-time home buyer, it will be of most value to the experienced home purchaser who knows what she or he wants. If you want to pursue this direction as a first-time buyer, I suggest that you locate someone with experience in home-buying and pay them a fee to advise you. A local realtor may be willing to do this. Check out the realtor's reputation carefully first, and be sure to buy a property that the realtor gets no commission on nor has any other interest in.
There is also advice in here on how to buy homes for rental, as investments. I suggest that you read other books on that subject first. Although this book covers the basics in that area, you may want to work first with someone who does this for a living for a while to develop more expertise before trying it yourself. If you are good at this, there's no reason why you shouldn't be able to become a real estate millionaire.
This is a good time for this activity because interest rates have risen and you will probably be able to refinance your property at lower interest rates in the future. Dropping interest rates will also increase the value of your property.
The book is divided into sections on determining whether or not you have found a bargain home, how to get the best price on a bargain home, where to find repossessed homes (like the one I described above), how and whether to buy a handyman's special (one that needs a lot of work that you would do yourself), how to buy at auction, and helpful negotiation and buying skills.
For a short book, it covers a remarkable number of subjects (49 chapters in 130 pages). The glossary will also be very helpful in adding to your understanding of the terms used in home buying. The appendices are also full of useful information.
This would be an excellent book for any homeowner thinking about purchasing another home to read. It would also make an excellent gift to one's grown children as they contemplate home ownership. As a parent, you could help them through the path involved here. It may not be a good idea to share this with one's married grown children, however. There are many emotional reasons for home ownership, and a spouse may not want a bargain -- preferring a dream house instead. You don't want saving money to become a source of friction in your child's marriage, do you?
Some may be bothered by the idea that they are taking advantage of someone else's misery in getting a bargain home. Another way to look at it is that by becoming another bidder, you are helping that person to get more for their property than they otherwise would. Most such sellers would be glad you did. If you sense that your actions will cause the seller emotional distress, you certainly do not have to bid on that property. There will be another one where the seller will be delighted to sell to you.
After you have read this book, think about what else you could buy in less expensive ways using some of these ideas. Used vacation time shares are an obvious possibility, as are all kinds of items bought through notes from banks (this may even include cars, pianos and other household items). Businesses can be bought this way, too. The savings are only as limited as your imagination! Also, can you think of how you could turn your skill in this area into a business that would provide you with great satisfaction and a nice income?
