Anyone have any suggestions/advice on Foreclosures? This is how I’m thinking of starting out.
- Make a List of Private Lenders/Investors/hml’s.
- Make a List of potential buyers.
- Call a bank and negotiate a price on a home 30-60% below market value.
- Once the deal is set, I’d call my Lender and get the funding.
- My next step would be to flip it with the best exit strategy in this situation.
Does this all sound okay or am I missing some steps in there? I’m just starting out so if you can give me some vital info I’d really appreciate it. Thanks in advance.
Can someone give me any advice or tips? Am I doing this right?
do you really want to start out in Foreclosures? Did you do any study courses on pre-foreclosures, foreclosures, or short sales?
You might get a few more responses by putting your post in the proper category.
FIRST, you need to find the motivated sellers who will work with you and get a release for authorization to speak to their lender. Then while negotiating with lender you find a buyer on the back end. That’s the short (LOL) version. There’s things to learn about state laws, and what contracts to use, and how to put the deal together, how to speak to the bank, etc. I know because I have been going thru all these things this past several months, took a few courses, and working on my first two SS. I know there’s lots more to learn, but there is great knowledge and support right here on this site. :cool
I’m sorry… I’m a beginner with a beginner question so I thought I’d place my post in the beginner section.
Is the release for authorization an actual form or do I just get a voluntary statement from the seller? If it is an actual form where can I get it (pref free).
I can send you one if you like. Let me know and where.
Just google “third party authorization” +mortgage
A good way to start may be with tax foreclosures or tax sales. These may be a better option for beginning investors because there is less risk and you can make legitimate investments with less money. There is a site out there called DFWSheriffSale.com that provides more information about tax sales and gives a listing of all the properties set to be sold at the next auction which is Tuesday August 7th.
It seems like everyone is in the foreclosure business these days. You may need a substantial amount of capital to get started so beware of this fact.
Real estate is very capital intensive… Its best to use other peoples money (OPM). Or if your credit is excellent, the bank will be happy to work with you. Maybe bird dogging would be better because it is a low investment and requires mostly time… The list you post is okay…
Good luck :biggrin
Can you send me one too? Thanks, Juliet
I have to say this all sounds like it came from a book or some GRQ course. It is far too simplistic and unrealistic.
Make a list of buyers and investors?- That is the first tiny step of a much tougher process of finding real buyers and investors who will deal with you. How are you going to make this list? Easier said than done.
Call and bank and get a great deal? First of all, just a little research should have taught you that you don’t call banks to locate prop. REOs are located via MLS or REO brokers. Short Sales through other marketing. Other pre-foreclosures via other marketing. Banks aren’t going to help you. 30-60% below market is ridiculously exaggerated. No matter what the hypesters tell you, these bigger numbers aren’t happening. 20% below the real market value (not some old appraisal or fake zillow price) is a more realistic target.
Flip it? Now there is the real fun part. Good Luck on that part. Have you read a newspaper recently. Selling your property is getting a tad tough right now. Good Luck.
You can make money in FC investing and it is an exciting time right now. But exciting for me means dangerous for a newbie. And exciting does not mean easy. People are making money and people ARE getting burned badly too. Remember, if it sounds too good to be true. It is.