Cheap Houses for Sale in Florida Profitable for Oregon Firm

Cheap houses for sale in Volusia County in Florida have been profitable investments for Oregon-based investment firm Gorilla Capital, which was founded in 2006 by lawyer John Helmick and foreclosure specialist Benjamin Bazer.

Since July last year, the firm has purchased and resold about 33 foreclosed homes in the county, earning from $5,000 to $10,000 from each sale. Its repair and improvement costs typically cost between $10,000 to $15,000.

According to Rob Helmick, brother of Gorilla co-founder John, the firm participates in the daily foreclosure auctions at the court in DeLand, but it chooses its properties selectively. He said he looks at about 400 foreclosed houses a week before purchasing one or two units. He added that anyone entering the business should do research and gather experience.

Rob Helmick also added that his firm’s strategy is to beat short sales on price and on speed of delivery. He said that his team can finish remodeling a house in 2 weeks and resell the rehabilitated unit at about $10,000 to $20,000 lower than adjacent homes.

Another strategy used by Gorilla Capital to be able to buy cheap houses for sale is to buy only at foreclosure auctions administered by courts. Helmick said that not only are properties bought at auction lower-prices, they are also free of difficulties associated with negotiating with lenders and delinquent homeowners.

Circuit court operations chief Barbara Long said that Gorilla is the only out-of-state firm buying foreclosures in Volusia. It also participates in the auctions every day and buys regularly.

Phil Maroney, head of the Daytona Beach Association of Realtors, said that he lauds the firm for recognizing the opportunity that exists in the area. He added that current prices are advantageous to investors.

Helmick said that after he purchases a home, he lists it at gorillacapital.com with pictures and sends emails to registered buyers who are given three days to send a purchase offer. Buyers can make offers on the as-is condition or on partially remodeled and fully remodeled conditions. Full renovation includes repairs on the roof, walls, heating and cooling systems, pool and other major parts of the house.

Around one-third of sales are sold to registered buyers, according to Helmick. The rest are sold to buyers searching the Internet randomly or to buyers waiting for Helmick when he visits the properties.

Helmick stated that it is heartening for him to be able to turn previously awful-looking structures into great but cheap houses for sale, help families own homes and help rejuvenate foreclosure-clobbered neighborhoods.

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