Foreclosure Goldmines
Build massive wealth with foreclosures!
Foreclosures Goldmines. One of the most asked questions by would-be investors is how can I find foreclosure homes? Good question.
Every major city in America has a newspaper that lists properties that have been foreclosed by a lender. The county courthouse will maintain a "lis pendens" file which stands for "lawsuits pending". This is the file of property owners who have had lawsuits filed against them in order to start the foreclosure process. Foreclosures are taking place at an astronomical rate.
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But, here's the reality of finding a "free" list of foreclosures....there really isn't one...
. . . unless you do the work yourself by going through the above scenarios. There are plenty of companies that provide lists of foreclosures and allow you a 7-day trial to see if the information you receive is helpful and then you can subscribe to the service. If you want to spend your time doing courthouse searches, your search will be a slow and cumbersome one taking away from the time you can use actually closing deals. |
Whether you plan on flipping properties or holding for rental, here are a few suggestions for locating foreclosure goldmines:
- real estate agents - they have the multiple listing service and in many cases they are the listing agent for bank-owned and government repossessed properties.
- for sale by owner (FSBO) signs - calling homeowners who are selling their own properties is sometimes an indication that they are in foreclosure.
- Bank Owned Properties - try your local bank or the website of a national bank and ask about properties they need to liquidate or who the agent is that handles the disposition of their properties. HINT: try near the end of each quarter since the majority of bank must do certain reporting on based on the assets and liabilities (properties included).
- Drive By aka "Farming" - farming a neighborhood involves driving around and getting to know an area and finding out which properties are in need of repair. Send a letter to the owner asking if they would be interested in selling.
- FANNIE MAE - this is a government agency that insures mortgages and many times will acquire properties that they have insured and has now been foreclosed by a lending institution.
- HUD - another government agency that acquires properties that they have insured.
- auctions (government tax lien, IRS) - check with city tax offices for properties being foreclosed due to non-payment of taxes. Try http://www.sheriffsalesonline.com/ as a good resource for properties. Occasionally cities hold auctions with the starting bids being the amount of the unpaid taxes. You may be able to purchase a property that needs only a little work or one that has been abandoned and in need of major renovation. Also consider eBay property auctions.
- foreclosure lists - there are companies that specialize in producing national lists of foreclosures. Some of these companies offer a free trial period that allows you to search their data base for properties. If you find them helpful, then you will usually pay a monthly subscription fee.
- unemployed and have bad credit--you can learn how to get paid to "buy" homes
- classified ads - make a habit of calling ads in newspapers, It will help to build your confidence when you realize that most owners are willing to share a great deal of information regarding their property and their reason for selling.
- business cards - if real estate investing is the way you plan to gain financial freedom, begin to conduct yourself as an investor. Create business cards that you can distribute to everyone letting them know that you are an active investor. Get can get 250 free business cards at Vistaprint.
- word of mouth - talk to everyone about the type of properties you are looking for and you may also be willing to provide a finders fee for leads resulting in a sale.
- real estate websites - the Internet has a wealth of information on investing in real estate and how to locate and acquire foreclosure properties.
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