I BUY "DIVORCE HOUSES"

8:30 AM Wednesday, June 1, 2005: I like real estate with a story. That's my way of saying there's some reason why the property is cheap compared to other similar ones nearby. My friend Larry Nusbaum is a broker/investor in Phoenix. He writes,

"I love to buy homes from sellers who are going through a divorce! The husband had nowhere to go and didn't want to be out of his beautiful home! He also would not allow it to be put on the MLS (multiple listing service) and be shown to the world. I ran comps (comparables) and discovered that they wanted about 25% under the market, so I made an offer contingent on him renting back for one year. He jumped at the offer and I had my renter. I insisted the rent be paid up front in escrow. I will sell when and if he moves someday."

I hear a lot about institutions wanting to dump a property or two because it no longer "suits their investment objectives." Foreclosures used to be more interesting but too many people have discovered the "Fix and Flip" market. Still, Larry says Firstpreston.com is a great site for Bank of America foreclosed properties. "I have purchased from them directly and have been able to turn the properties very quickly. They maintain the properties while going through foreclosure," says Larry.