Hi,
Here are few points that shows that foreclosure has became famous these days.
Local people interested in investing in the foreclosure properties and houses.Short sale is among the popular sales and the agents of the place have complete knowledge regarding the properties owned by the individuals, properties that come in the foreclosures and short sale.
Foreclosures have lead to change up to a great extent in recent years
people look forward to buy houses during the foreclosures.
Short sale and foreclosure can be beneficial to the individuals who wish to make investment at the place.
The agents also suggest the amount that can be offered to them for purchasing the property.
Any suggestions?
I would suggest focus on Real Estate investing as a whole and don’t just seek foreclosures. Sure you will meet with sellers that are in foreclosure, but the goal is to solve the sellers problem whether they are in foreclosure or not.
I have met many so called real estate investors but all they know is short sales. As an example, my last deal was with a seller who needed to move fast because of a job transfer. He did not want to rent it and be an out of state landlord and he was concerned about making double payments – the mortgage on the house and the apartment he will be renting in another state. He was not behind in his mortgage and has about $100k in equity in the property. He spoke with many investors and a few even suggested for him to stop making payments on the property so they can negotiate with the bank, totally ridiculous.
Another investor convinced the seller to just list the house since the investor was also a Realtor. No one bothered to listen to this seller to determine what would really solve his problem.
Long story short, when I sat down with him his main concern was the double payments. So I structured a deal of a hybrid subject-to with Land contract. I took over his mortgage payments and he was willing to take only $25k of his equity and gave me the rest.
I give this example because if you’re going to be a long term player you need to educate yourself on how to structure deals so that they work for you and the seller.