Buy A Foreclosure Bargain
Jeff wants to buy a foreclosure house. Real estate brokers are buying them up before he has a chance to look at them. How does he do it?
QUESTION: Jeff wants to buy a foreclosure house. Real estate brokers are buying them up before he has a chance to look at them. How does he do it? Dave gives him the full details.
ANSWER: What we found is that when the ad comes out for the foreclosure in the legal section of your newspaper, you have to be the first person to talk to the person that’s being foreclosed on. The problem is a lot of them owe more on the house than I would ever give for it, and it’s tough to get a short sale worked in three weeks before a foreclosure actually occurs.
We chose to go to houses that only owed an amount equal to or less than what we’d give for the house. In other words, I was looking for properties that had equity in them. So what is the property worth today, and can we buy it at a bargain?
I would cut out the ads from the legal section of the newspaper. Then, I would go to the courthouse, pull each of them up, and find out what they owe. That culled 90% of them. I took the other 10% and drove over to talk to them.