Does anyone know of any websites which discusses in great detail the purchasing of foreclosed real estate? I am planning on buying a house to fix up and sell in my spare time, so any help or insight would be greatly appreciated!
"She Wants a Man, Not a Boy"
You asked her if she wanted to grab coffee. Then you asked if the time worked. Then you asked if the place was okay. Then you asked if she'd prefer tea.
Four questions. Four chances for her to say no. Four signals that you're terrified of making a decision.
Plan it. Pick the place. Pick the time. Tell her where to meet you. She'll either show up or she won't.
Either way, you look like a man instead of a scared little boy.
Buying Foreclosed housing
- Thread starter chevelle
- Start date
"She Liked You in March. It's October Now."
Attraction runs on a clock.
She flirted for weeks. Touched your arm. Found reasons to be alone with you. And you were careful. Respectful. Waiting for the right moment.
The moment had a shelf life. It expired around month two, and by the time you asked her out, she'd quietly filed you under "little brother."
One of the hardest lessons inside the 22 Rules: women rarely wait. Interest either grows or it decays, and nothing decays it faster than a man who never moves.
Make the move while she's still inventing reasons to be near you.
Bible_Belt
Master Don Juan
I used to research and buy foreclosures. The problem is finding one where there is equity. The interest in a mortgage is front-loaded, and most defaults occur in the first five years, where there is no equity. To make money, you need to find a foreclosure with 30% equity; 50% is better. It's not easy. Also, most people who allow the home to go into foreclosure don't treat it very well. The 30% number comes from what banks usually consider as the breakeven to repo and re-sell the house.
copied from:
http://www.sosuave.net/forum/showthread.php?t=87462&highlight=equity+foreclosure
Here's how foreclosure investing works (it will vary some from county-to-county):
The Lis Pendens is the very first foreclosure notice. Get the list when it first comes out. Using the numbers that come with it, look for very old mortgages going into foreclosure. What you want is equity. Maybe 1-2% will be worthy of looking further. Most people go into foreclosure early on, and since the interest is front-loaded, they have no equity. You are looking for at least 30% equity (rough number). 50% is better.
If there is equity, the next step is a lien search, usually in the same building. Make friends with the overworked people who work there, and they will teach you what you need to know. Many people in foreclosure also owe a lot of other bills. The lien amounts must be subtracted from the equity. IRS liens must be paid in full. Other liens are usually negotiable. Sometimes they are happy to get any money.
If there is equity and no/few liens, the next step is getting in touch with the owner. I find the house and knock on the door. (after selling Kirby vacuum cleaners, stuff like this is easy) They usually did not know that foreclosure had been filed, I got to them that quickly. One lady started bawling. The sales pitch is that if they do nothing, they lose all of their equity to the bank. If they sell the house to the investors for whom I work, they can walk away with several thousand in cash and stop the foreclosure. If they absolutely will not deal, the final card that you play is a lease-option. They sell me the house, rent for six months, and then they have the option to buy but must obtain outside financing from a bank. This gives them a chance, but realistically, if foreclosure happened once it will happen again. Usually, you will end up having to evict people from their homes, which can be troubling, but you end up making the foreclosure profit that the bank would have made.
The key to this method is speed and hustle. Often there will be a published newsletter of lis pendens info for investors, but it takes a week to get printed. You have to find the deal and get the property owner under contract before then. There are easier ways to make money in real estate, but this is a good way to get your feet wet.
copied from:
http://www.sosuave.net/forum/showthread.php?t=87462&highlight=equity+foreclosure
Here's how foreclosure investing works (it will vary some from county-to-county):
The Lis Pendens is the very first foreclosure notice. Get the list when it first comes out. Using the numbers that come with it, look for very old mortgages going into foreclosure. What you want is equity. Maybe 1-2% will be worthy of looking further. Most people go into foreclosure early on, and since the interest is front-loaded, they have no equity. You are looking for at least 30% equity (rough number). 50% is better.
If there is equity, the next step is a lien search, usually in the same building. Make friends with the overworked people who work there, and they will teach you what you need to know. Many people in foreclosure also owe a lot of other bills. The lien amounts must be subtracted from the equity. IRS liens must be paid in full. Other liens are usually negotiable. Sometimes they are happy to get any money.
If there is equity and no/few liens, the next step is getting in touch with the owner. I find the house and knock on the door. (after selling Kirby vacuum cleaners, stuff like this is easy) They usually did not know that foreclosure had been filed, I got to them that quickly. One lady started bawling. The sales pitch is that if they do nothing, they lose all of their equity to the bank. If they sell the house to the investors for whom I work, they can walk away with several thousand in cash and stop the foreclosure. If they absolutely will not deal, the final card that you play is a lease-option. They sell me the house, rent for six months, and then they have the option to buy but must obtain outside financing from a bank. This gives them a chance, but realistically, if foreclosure happened once it will happen again. Usually, you will end up having to evict people from their homes, which can be troubling, but you end up making the foreclosure profit that the bank would have made.
The key to this method is speed and hustle. Often there will be a published newsletter of lis pendens info for investors, but it takes a week to get printed. You have to find the deal and get the property owner under contract before then. There are easier ways to make money in real estate, but this is a good way to get your feet wet.
Thanks a lot for the information! I am trying to get into real estate investing and purchasing foreclosed houses seemed like the only alternative to make money.
I just purchased some real estate books last week, but have yet to finish reading them. So, i assume their are better real estate investments as opposed to buying foreclosed real estate.
I just purchased some real estate books last week, but have yet to finish reading them. So, i assume their are better real estate investments as opposed to buying foreclosed real estate.
Some dude on richdad.com sent me a free ebook on tax lien certificates. Looks pretty good, I haven't read it because I'm concentrating on trading right now though. PM me and I'll send the book to you. Certificates aren't as capital intensive as actual houses as far as I know.
Reyaj
Master Don Juan
damn Bible your a real estate guru too?
"She Liked You in March. It's October Now."
Attraction runs on a clock.
She flirted for weeks. Touched your arm. Found reasons to be alone with you. And you were careful. Respectful. Waiting for the right moment.
The moment had a shelf life. It expired around month two, and by the time you asked her out, she'd quietly filed you under "little brother."
One of the hardest lessons inside the 22 Rules: women rarely wait. Interest either grows or it decays, and nothing decays it faster than a man who never moves.
Make the move while she's still inventing reasons to be near you.
Bible_Belt
Master Don Juan
lol, Jayer. The "guru" part is open to interpretation, but I was a mortgage broker for a while, and I have bought and sold a few properties. I have also bought a house out of foreclosure using entirely other people's money. The late-night infomercial gurus are 95% full of bs, but if you find a very profitable deal, it is not that difficult to find an investor who wants to make money off of your efforts. Auctions are the place to meet investors. 10% is a standard finder's fee. It is not much of a share for doing almost all of the work, but cash is king. The 90% sounds like a good deal for the investor, but because it is all his money he bears 100% of the risk. 10% on 10 deals will give you enough money to buy your first property with only your money, if you choose to go that route.
I have not done tax lien sales, but afoaf is an old guy who from what I hear has accumulated a large fortune over his life by buying tax liens. He pays the back taxes, and if the property owner come up with the money, he still gets a large interest rate, almost 20% on his money. If the property owner does not pay the back taxes within a set period of time, property ownership can default to the lienholder.
The ugly side of real estate investing is that with most methods, you will eventually be in the position of having to evict someone from their home. Having a rent or mortgage payment is part of life, but some people go into default for very legitimate reasons, like becoming too sick or injured to work.
I have not done tax lien sales, but afoaf is an old guy who from what I hear has accumulated a large fortune over his life by buying tax liens. He pays the back taxes, and if the property owner come up with the money, he still gets a large interest rate, almost 20% on his money. If the property owner does not pay the back taxes within a set period of time, property ownership can default to the lienholder.
The ugly side of real estate investing is that with most methods, you will eventually be in the position of having to evict someone from their home. Having a rent or mortgage payment is part of life, but some people go into default for very legitimate reasons, like becoming too sick or injured to work.