First Timer Needs Help
I'm extremely new to the investment world and would like to get into foreclosure investments. The problem is, I don't know where to start. I have the money, the attitude and the talent, just not the investment know how. Someone please explain to me what I should do starting off right now. How do I find property? Who am I buying it from? Do I assume the loan or start over? So many questions. Someone please help.
Dear Mr. Kent
Tell us more about where you are coming from. What makes you think you want to do this? Have you read some books? What other business ventures have you participated in? What do you do for a living?
Thanks for responding. I have bought a few houses in my day, but always for my family to live in. I've always been able to do the necessary improvements and sell them for a nice profit. I'd like to start doing it now though as more of a business. Maybe I'm crazy, but I'd like to give it a shot..
Right now I'm a Production Supervisor. So I deal with people, conflict, and stress everyday. These are probably issues that are familiar to everyone in the real estate industry.
I would suggest you start doing a lot of reading. This business does have a huge learning curve and you can never stop learning. I do like the business because the stuff I learned a year ago is not obsolete now (as was the computer industry that I came from).
For my start I purchased Carelton Sheets no down payment course off the TV for $9.95 for the 30 day trial with all intentions of sending it back. The program is a great course to begin with although many people have something against it. I ended up keeping the course, mainly for the forms.
I would also recommend reading everything by Robert Kiyosaki starting with "Rich Dad Poor Dad" and "Cashflow Quadrant". These are excellent books and will put you in the proper mindset to get started investing. I would actually start with these books first before anything else!
From there you'll have an idea where you want to go and the basic idea how you are going to get there. Then turn to this forum and we can help you fill in the blanks.
If this isn't the answer you are looking for I can tell you how to find foreclosure properties---using a realtor--they are all listed on the MLS.
If you are talking about pre-foreclosure it is a pretty simple process. You go to the courthouse and get a list of properties going to auction. You can proceed to try to buy the property.
GOOD LUCK
Thanks for the great suggestions. That's the kind of help that I need. I've considered the Carelton Sheets way, but I hadn't talked to anyone about it. I might do it like you did.
Thanks for the help. I'll let you know how it goes.
" have bought a few houses in my day, but always for my family to live in. I've always been able to do the necessary improvements and sell them for a nice profit."
You've already started! Just contiinue to do what you've done. How did you find the houses? When did you profit (upon sale to the family member or when the family member sold?). You do your own work ...sounds like you're a rehabber to me. Have more faith in yourself and move forward. You're doing it!!!!
What I will tell you is true here in CA so there may be some variations where you live.
The first sign of a possible foreclosure is the posting of a Notice Of Default. Here this occurs at the county recorder's office. If the default is not cured after a time, then the lender can pursue a sale and a notice of sale is recorded. Here the notice of sale must be also be published in a local newspaper. Some counties offer a service that gives you a list of all recordings within days of their occurrence. You can use these to track potential sales.
You are buying the property from the current owner who is being forced to sell in order to pay off a loan on the property. If the foreclosing party holds the first mortgage, you get the property free and clear since all junior mortgage loans will be wiped out at the sale (unless the price is bid high enough to pay off the juniors). If it is a second mortgage loan that is foreclosing then you will be able to take over the existing senior loans if you are the successful bidder.
Pursuing foreclosures is very time consuming. Your success will very much depend on the market conditions and number of foreclosures in your area. If you are tracking Notices Of Default (NOD) or Notices of Foreclosure Sale (in some areas these are Sheriff's Sales) you will find that many of these are rescued if they have any equity in them or the sales get postponed or you will be outbid at the sale. Right now Indiana leads all states in foreclosure sales. The number of properties that are up for sale is pretty big. A few days ago Marion County (Indianapolis area) had a sale with over 100 properties. I was looking to buy one of them that is near property that I own, however, I found out it needs a great deal of work and the initial bid was way too high for the market. I am betting that a bank owns it now. You might look at preforeclosures or bank owned property as an alternative or to augment your foreclosure chases. These are just my thoughts. I hope they are of some help.
Regards,
Ed
Thanks to everyone for all of the help so far. I knew that there was a lot of experience out there. I'm glad I was able to find all of you. If anything else pops into your heads, please pass it along. Thanks again.
I believe you need to read some books and attend some auctions before you jumping into this business. I read different books all the time because you have to get information from different sources and but it together. When, you buy a book look at the last copyright to see how old the book is. At the present time I'm reading 209 Fast Spare-Time ways to build Zero Cash in 7 Figures a year in Real Estate by Tyler G. Hicks. At some time you really have to get your feet wet and go for it. :-D
Thanks for the suggestion about books. I think that's what I'm going to do before I get in to deeply. If anyone else has read any good books on the subject, please let me know.
Have you gone to the auctions to see how it works at your district and if so how is the competition. In NY competition is pretty high but I'm still able to get a property here and there. July and August is slow for auctions sales due to lawyers and judges going on vacation. Here in NY we follow the judicial forclosues sale system. Another book is Making Big Money Investing in Foreclosures without cash or Credit by Peter Conti & David Finkel.
If you have any questions you may reach me at 718-657-4564 from 6PM-11PM. :-o