Posted by Bill Gatten on July 24, 2001 at 13:04:50:
That’s a nice way to get lots of help here on CREO.
Many will be happy to step right up to your preset standards of how to answer your questions, I’m sure.
In the meantime, I guess I’d better get out there and find out what this “working foreclosures” thing is all about. I’ll report in when I gain some experience in the area.
Bill
FORECLOSURE QUESTION - Posted by ERIC
Posted by ERIC on July 23, 2001 at 17:21:20:
I am planning to start investing in foreclosures. My question is: has anyone had any bad experiences or know of anything I should watch out for? thanx in advance
Re: FORECLOSURE QUESTION - Posted by Stu Silver, Trainer
Posted by Stu Silver, Trainer on July 24, 2001 at 19:11:59:
Hello Eric,
What to watch out for? Hmm, here’s a small list after 20 years of foreclosure investing:
Always do a title search so you know which liens are staying and which are being wiped out
Bankruptcy - check right up until 10 minutes before the sale to see if owner is declaring bankruptcy - sometimes owner does not tell clerk of the bankruptcy filing and then you have to get court order to get your money back when clerk does the sale, and then rescinds it later
Try to get into house to do inspection - you can not tell how a house is on the inside from the outside
Make sure you understand your state’s redemption laws - redemption can be a mine field
In pre-foreclosure, do not be tempted into letting former owner stay in the house once you stop the sale. If they didn’t pay the bank, they won’t pay you
Most surprises are unpleasant in the foreclosure business - leave a little room for the repairs you didn’t see, that come up to bite you on the assets
Get your A.Q. to the genius level - Appraising Quotient- know what a property is worth before you buy it - don’t play wishful thinking
For vacant land, do your homework - know what zoning will and won’t allow before you buy it - land has to be fed 3 times each day when it doesn’t sell
For Commercial property, check to see if any environmental problems hiding - I’ve seen properties purposely let slip into foreclosure so some other fool will be held accountable for the clean up
Quit focusing on the negative and get out there and find some deals! More fortunes have been made on foreclosures than just about any part of real estate investing!
That’s enuff for now,
Stu Silver, CCIM
Lead Trainer at Russ Whitney’s Millionaire U
FORECLOSURE ANSWER - Posted by JT - IN (St. barth, FWI)
Posted by JT - IN (St. barth, FWI) on July 24, 2001 at 14:21:56:
Eric:
I do “work foreclosures”, buying about 15 or 20 of them per yr, and I know of lots of bad things, (and seen them happen, fortunately not to me). There are ways of avoiding these many pitfalls. The answer is called “EDUCATION”.
If you were asking about trying to perform surgery, as example, well you must go to medical school, and learn the trade of surgery. Foreclosure is no different, unless you want to learn by making mistakes, it is best to learn before you get involved, with your name on the line, as there are many situations germain to 4closures that can be avoided, but not by a novice.
I would suggest buying Joe Kaisers “Dominate your Forcls Market”, which is avail right here on this sight. Also, there are several books about foreclosure, on by Ted Thomas, but i can’t think of the name currently; could be Buyuing RE at Forclosure"
and most of all , attend many sales in your area, and make sure you have a feel of the landscape before getting involved!!
I have seen ppl buy property that they thought was free an clear, only to find liens that they didn’t realize existed; that had to be paid off for clear title. I have seen ppl buy houses with foundation problems, and environmental problems, etc. Foreclosures are fraught with problems, as you are buying from someone that is in financial problems, so this is how much of it occurs.
Best word of advise here, is if you are not “lead pipe cinch sure” about whatever the question is concerning foreclosures, then don’t procedd ahead until you are darned sure! Mistakes in 4closures are expensive!!! Enough said.
Just the way that I view things…
JT - IN (from St. Barth, FWI)
Re: FORECLOSURE QUESTION - Posted by Jeneine
Posted by Jeneine on July 24, 2001 at 08:38:29:
I am not sure if this applies here but I will give it a shot. First let me add that I haven’t invested in any properties but have read many posts on here and know that there are many individuals that are in this business and take their profession seriously.
There is a home this is for sale that I visited just a few months ago. I was with a friend and we stopped to look at it because it said on the realtors sign Lease to own or rent. I seem to remember this property was forclosed around 12 months earlier. Not 100% sure but remmeber the street. Anyway, when we stopped a gentleman from across the street came over and allowed us entry. The house was completely renovated. I had to ask my friend what the specs were on the inside. Well as we remember it had 2 kitchens. One was down stairs. Possibly the basement that was completely renovated. The other kitchen was on the first floor. It had a second floor where there were bedrooms. I don’t remember how many bedrooms etc. However, it was a large house. The exterior was stucco and not very atractive looking. The owner wanted $600,000.00 for the house. THis house sits on a very active street that leads to the Cross Island Parkway in Queens. THe front yard…well there is no front yard to speak of. It was all paved over allowing for parking. I noticed that the only way a car could be parked there would be on an angle. The town this house is in is an upscale community. This house has no appeal inside or out. I am not an architect nor a builder but I can see many mistakes were made in designing this house. It has been on the market for many months now. They also have a new realtor and the house is up “for sale” only. Also I think this house is way overpriced even for this community, even at this time whether it was a year ago or now. I am afraid that if it doesn’t get sold soon it will become another forclosure. I would like peoples opinion. I am just curious as to what could happen to this house
Thank you,
A new poster
Re: FORECLOSURE QUESTION - Posted by Bill Gatten
Posted by Bill Gatten on July 23, 2001 at 22:12:31:
Eric,
I know you mean well, but that a bit like saying: “I’m planning to start flying jet fighter planes…has anyone had any bad experiences with these things, or is there anything I should watch out for?”
Of course there are thousands of downsides, traps, pitfalls and things you should watch out for. A better question might be: “What tje forst step ion getting started.”
Answer: Buy a good course on the subject: Bronchik, Kaiser, LeGrand, Sheets, etc. The the products page here on CREO.
Bill Gatten
Re: FORECLOSURE QUESTION - Posted by ERIC
Posted by ERIC on July 23, 2001 at 23:00:24:
Thanxs for nothing Bill, Ive read many books on the subject and courses but my question is to people who have done foreclosure investing apperntly you havent, you could have a better response than that. Bill I know u mean well but I am not asking for the procedure I mearly looking for some feedback or past experiences that books may overlook or may not have mentioned.Have you heard the saying (learn from yur mistakes so u dont make them again) I am looking for professional investors bad experiences so I dont have to learn from my mistake I can learn from theirs. Thanx Bill I KNOW U MEAN WELL. YOUR SO SMART