Foreclosure leads, foreclosure sale notices, and pre-foreclosure

I just got a copy of Jay Palmquist’s "How to Find Motivated Sellers and Get Them To Find You…’

Pretty awesome list of 149+ Ways to find motivated sellers.

I am eyeballing #58, 59 and 112. Those all deal with foreclosures…

Where do I even begin learning about this topic?


How do I track foreclosures?

Who are Trustees? How do I call trustees?

How do I get on a trustee sales list?

How do I interpret the legal notices in the paper?

Do you have any specific books to recommend for learning about foreclosures?

What are title company farm packages?

What is the County Recorders Office?

Mr. All Ears, I want to help you, you deserve to be successful after all the crap you been thru. And we all do.
I’ve never done any foreclosures, you have to deal with Realtors and banks and do shortsales, you cant assign your contracts, you have to do double closings and deal with resale restrictions, you need to show proof of funds and put down some big earnest deposits and the worst part is, they take time, if you can wait 6-12 months to complete a deal and then get paid, And knowing that 80-90% of Short sales are not successful.
So I gotta ask, why in gods name wud a beginning investor want to deal with all that crap?
There is a better, easier way to make tons of money in Real Estate.
It’s called Wholesaling Real Estate. This is what I know very well.
Its so simple. The difficult part is staying focused and motivated, & believe me it’s profitable & the money can come fast.
Now if you want to chase Foreclosures I want you to change you handle from All-ears to Stubborn don’t listen hard road.
Are you listening?

Now there’s a difference between foreclosures and the 30/60/90 day late list. The late list is just that, people that are behind on payments but not technically in foreclosure. If you are targeting these folks for wholesaling, make sure to add a filter for equity. Me being a sub2 guy equity isn’t as important as wholesaling.

All Ears,

Proof of funds =

You don’t really need to have the funds. Realtors will take this.

Woah back it up. What is the definition of proof of funds?

I like the photo of the mansion with money falling from the sky…

Just read the website

I read a definition of proof of funds at Wikipedia. I probably would not qualify for much proof of funds.

However Wikipedia also describes Leased Proof of Funds. Interesting. That is something I would be interested to try qualifying for…

A friend of mine said “Those are rich girl’s problems” maybe this is but I would never give anybody a bogus proof of funds letter unless I had the funds. You don’t need the actual funds to have a legitimate POF letter. Ask your hard money provider.

Hahaha right… The only people who need proof of funds letters are the people that do not have the funds that they need so badly

It is a bogus service in all ways …right?

When you have a bad negative attitude everything is bogus, everything is a scam, everybody is out to get you, you cant trust anyone.
I know a guy that thinks like you, I helped him do a few deals, but I can’t be around him, his negative attitude brings me down.
You can hear it in his voice, you can see it in his facial expressions and posture and the way he walks.
I continue to do deals and he’s back doing construction. Last year he asked me for a 10K loan in a txt, I try to motivate him to get back into Real Estate and he says he’s too busy right now. Yea, he’s too busy earning a living to make any real money.
I’m convinced that attitude is the force that makes or breaks us.
And you Mr. All ears, I’m keeping an eye on you, I’m writing a chapter in my book about how I had to change my attitude before I could change my life.
Maybe you can change or maybe you can’t. I’m watching because it’s fascinating how changing our attitude can change our lives.
Let the games begin.

Ears, go talk with a hard money lender, or several, and find out what their financing criteria limits are, and the cost of their financing.

You use this information to make your offers. As Bluemoon said, HML’s will provide all the proof of funds letters you need or want. They’re not open-ended, and must be renewed, but these will work.

Not only that, but you know precisely where your money is coming from, and what gaps may need to be filled, if you’re not able to negotiate equity purchases that are low enough to qualify for 100% financing.

BTW, not all HML’s are created equal. Terms very widely and can change based on the HML’s experience with you. The money gets cheaper as you do more and more successful business with them. Don’t be afraid to shop around.

There’s gonna be a dominant HML in your area. Find out who that is, and work from there.

If you’re going to pursue foreclosures, you’re going to HAVE to find out who the bank’s foreclosure gatekeepers are, and make friends with them. I’m talking about friends that buy a case of their daughter’s Girl Scout Cookies every season, kinds of friends.

After that, you’ve got to find the brokers who act as the bank’s foreclosure gatekeepers, and buy their kid’s fundraising crap by the caseload. If you want to get to the front of the line, and a heads up on inventory that’s gonna go cheap, because of ‘whatever’ reason, you must be the person the bank/broker loves FIRST.

Go through the bank’s list of REO’s and find out who controls most of the inventory you’re interested in. Make friends with that person.
Smaller banks, credit unions, and the like often get rid of their REOs piecemeal with/without a broker. Make friends with the REO gatekeepers at these small institutions.

As an aside, ask the bank/brokers what, if any, properties they’ve been unable to unload, and try to solve ‘that’ problem for them. Be the problem solver. That doesn’t mean you buy wrong. It just may mean you have to deal with evictions, lawsuits, or some other hiccup that is making it difficult for the bank to sell a property.

This is a relationship business. It’s the same way with any business. It’s not necessarily who you know, but it’s ‘who knows you …and likes you.’

Speaking of that, I almost bought a 50-unit REO apartment deal where the tenants all had been given ridiculous, long term leases, with low rents by the previous owners, making the property unmarketable, if not driving the price into the basement.

Stupid, stupid me. I passed up on the deal, and the agent representing me, put it under contract herself, with the stipulation from the bank that she be given permission to renegotiate all the leases. Who knew you could do that?

Well, she sent all the tenants new monthly rental agreements, at the same rents, along with a 3-day notice to either approve the new lease, or quit.

These new agreements gave the agent/buyer the ability to raise all the rents to market rates nearly immediately after closing.

Of course, she had my low, low price locked in with the bank, borrowed money from the same, private source I was planning to borrow from; closed a month later, all with new rental agreements, and a couple of angry relatives of the previous owners, who knew what they had going.

This rents were over $150 below market per unit, and the upside was huge. My shinns are still sore from kicking myself for not knowing better how to navigate that situation. Since then, I’m not that naive about existing lease agreements. I have a new, multi-million dollar motto that goes, “Leases Mean Nothing.”

Who knew the tenants were too ignorant to understand they had legal leases that couldn’t legally be broken at will by the ‘new owner?’

Anyway, that’s enough ‘fish got away’ stories for today.