foreclosures - Posted by Jon

Posted by Ronald * Starr on July 10, 2001 at 14:41:55:

I received the following e-mail from Jon in response to the above post. Seeing no privacy issues, I post it for general viewing.

-----THE E-MAIL-------*

From: “john gant” | Block Address | Add to Address Book
Subject: Re: foreclosures
Date: Mon, 09 Jul 2001 19:45:56

Thanks Ron , I really appreciate your advice on foreclosures. I will
seek Education…Ron do you know of Joe Crump in Indiana, and where
does a
beginner begin. Doing flips maybe…Thanks again, I look forward to
from you again…I trust your judgement…


I do not know Joe Crump, sorry.

I do not recommend any particular way to start. I think that each investor has to develop an approach to investing that fits him or her. Uses skills and strengths that s/he already has. Does not require activities that s/he does not like doing or does not do well. Has elements that give pleasure to the investor. This means the investor will feel good and keep doing the activity for the many years it will take to get to financial independence–I estimate the average time to be about 10-15 years.

To develop your own approach, I recommend looking at a lot of different approaches. Talk to investors, read the postings on CREONLINE.COM, read books, magazine articles, newspaper stories. Try to look at them not from the standpoint of possible profit–which is probably why lots of beginners look into foreclosures–but what you would be like to do. And ask yourself “would this fit me?” Also “Does this make sense to do here in [where I live}? Will it likely work here, make money here?”

Pick maybe two, three, or four approaches that appeal to you and investigate them in more depth. Then pick one, or possibly two approaches and start trying to do it. Continue to learn. Learn by doing. Improve your approach to fit you better and to work better. If necessary, move the approach to some other environment where it will work better, if it is not working well where you are trying to operate it.

I recommend expecting to take about 6 to 18 months while figuring things out for yourself. In the meantime, you can be studing the market where you plan to invest. You can develop connections with other investors and possible help-folk such as attorneys, lenders, accountants, contractors, title company people, etc. You can also tighten your budget, saving money for investing, clean up credit if required, and generally position yourself for success. Take some classes at a local community college or adult school. Join an investment group if one exists.

Then get out there and work at it. Knowledge helps you steer toward success. Your energy, drive, get-up-and go will power you toward your success. You need both to get to financial independence in real estate investing, in my opinion.

Jon, I should point out that not everybody agrees with me on this approach. Some people advocate “just do it,” go out there and start investing. “The street is the best teacher,” they say.

I suspect for some people this may be a good way to go. I do not advocate it for most people. The problem is that the person may flail around for many months trying to find the right path for himself or herself. And may quit before finding it. S/he may get stuck in some poor deal for many years working to get out of it. This wastes time, your most valuable resource. Even if the investor finds some deals and makes some money, s/he may not like what was necessary to get the deals done–not everybody likes physical fixup, not everybody likes hard negotiating. The person may lose enthusiasm for real estate investing. And possibly even quit.

This is why I advocate what I do. I think it gives the potential investor the best possible chance to be successful as a real estate investor.

Good Investing*****Ron Starr****************

foreclosures - Posted by Jon

Posted by Jon on July 08, 2001 at 19:55:03:

To whom may I turn to to study the business of foreclosures.
Is there anyone that comes highly recommended.
Thank you;

Re: foreclosures - Posted by frank

Posted by frank on July 09, 2001 at 13:53:54:

You need to first look VERY careful as to what is happening in your real estate market and if it is like my market it is RED HOOOOOOT!! Meaning that temporarly there are fewer foreclosures and competition is TOUGH
AND SKILLED. There are other areas that could be easier and more profitable for a while or atleast until the market changes and it will.


Re: foreclosures - Posted by JT - IN

Posted by JT - IN on July 08, 2001 at 22:05:31:


There is a good course that is offered right on this site, authored by Joe Kaiser, “How to Totally Dominate Your Foreclosure Market”. It provides a lot of great info, however, as Ron * stated, it does not give specific advice as to the state laws, in the state that you may be interested in buying FC properties. Ron’s caution, concering newbies getting involved in FC sales, is quite valid, as they are not for the faint of heart, (or wallet)! There are many things that can, and do go wrong, on unsuspecting FC buyers. I specialize in buying FC properties at Sheriff Sale, and I have seen and heard of many “horror stories”. So let it be understood, that FC sales are definitely for “experiecned, knowledgable investors”.

Another book that I have read, that is worth reading, is authored by Ted Thomas, “Big Money in RE Foreclosures”. About $ 30 bucks retail, and probably 29 cents on (Just kidding)! It is copyrighted in 92, and not too much new since then.

Another very important step, IMHO, is that once you get educated in FC, (or so you think), then it is time to really get educated! Meaning, it is time to dig into your local FC sale, by tracking what happens, and why, and for a good long period of time, until you understand these things backwards and forwards. Then it is time to learn something about Bankruptcy law, as it is fairly integral to the FC process.

Oh, by the way, in just about all cases, it takes “COLD HARD CASH, ON THE BARREL HEAD” at these Sheriff/Trustee Sales. So as Ron stated earlier, this is generally NOT for the new guy/gal. It is a method of obtaining property at a reasonable discount, (65 - 80% of FMV), in some cases, and a way to make a decent living in the RE investment business; (unless you are looking to come to Cincinnati to buy Sheriff Sale property, and in that case, IT IS A TERRIBLE WAY TO MAKE A LIVING, cause that’s where I do business) LOL.

Good Luck and get a good education by choice, not out necessity!


Re: foreclosures - Posted by Ronald * Starr

Posted by Ronald * Starr on July 08, 2001 at 21:33:56:


Interestingly enough, probably not. There are maybe 6 to 10 books on foreclosure available in Books in Print. I don’t feel that any of them are so good as to recommend them. And most are not so bad as to slam them.

The laws are different in every state. To write a nationwide book is nigh on impossible. Either it will be too general to be useful or it will apply in some some states but not others. And most states would not have enough buyers for it pay for a writer to write for that one state alone.

Your best source will be the state statutes for the state in which your plan to buy foreclosures, in my view.

If you are a beginner, I would suggest you hold off on trying to do foreclosures. They are a specialized field with a lot of risk. I recommend you spend a few years doing other types of investing, earning and learning as you go. Then, a bit latter you can plunge into the foreclosure arena if it seems approapriate to you. The drop-out rate of would-be foreclosure investors is extremely high.

Good Investing and Good Studying*****Ron Starr*******

Nice Phrase there Good Education… - Posted by Ronald * Starr

Posted by Ronald * Starr on July 09, 2001 at 15:26:48:


Gee, why did I even bother to give Jon advice if you’re going to give him so much good advice?

Why don’t you put in a lis pendens on the posts that you’re going to help people with, so I can go do something less fun? Then I’ll come back and read your post so I can learn how I should advise people.

I like that phrase: “Get a good education by choice, not out of neccessity!” Hm. I hope you don’t think I’m trying to upstage you, but how about amending it to be “get a good education in the horrors of foreclosure by choice, not out of neccessity.”

Good Investing and Good PostingRon Starr***