Buying Foreclosed Homes in the Comfort of Your Home


September 26, 2017 Facebook Twitter LinkedIn Google+ Online Auction


Most of the heavy work that goes into buying affordably good foreclosed homes can be accomplished without leaving the house since the bulk of the work is research and planning. As far as research is concerned, the first task is searching for the property that will suit you. There are several ways to do it but the most popular ones are searching through online foreclosure listing services, seeking out government foreclosures from the office of Housing and Urban Development of HUD, tapping real estate agents and brokers, and obtaining bank listings.

Online foreclosures listing services are probably the best source of foreclosed homes. Most of these services operate as one-stop-shops where everything you need in relation to foreclosed houses is available. These sites are so much more than just a database of foreclosed homes. Among the services they offer include the highly customizable search function that yields foreclosures for sale according to the searcher’s preferences. They will also have a mortgage calculator that computes your monthly amortization. These services will also have tons of literature on the foreclosed properties that may interest you, including price comparison analyses, demographics, data on the business and economy in the locality.

The Department of Housing and Urban Development or the HUD is a good place to learn about the housing market in general and the foreclosure market in particular. While you learn how to go about buying your home you can also get good leads on the significantly discounted government foreclosed housesfor sale. The government office also has a web site that offers the same set of information that is offered when you visit any of their offices across the country.

You can always enlist the help of a broker or an agent who specializes in foreclosed properties. Every city has a board of realtors with a list of all licensed brokers practicing in the area. These are the experts in real estate including foreclosed homes and they can help you find your way around buying a home at a low price. They are also very good at sorting out all your requirements and documentation to complete a purchase. Their help is indeed valuable but they come with a price.

Banks and other lending institutions will have an inventory of foreclosed homes which they release to the market through their broker. These homes are known as real estate owned properties and they too sell for less than their real value. Most buyers feel more secure dealing with banks for huge investments like a home. Most first-time buyers are well advised to purchase foreclosed houses in this manner. Banks will offer value add services to attract buyers such as title insurance and pest certification, they will also evict the occupants of the foreclosed home prior to your moving in.

Joseph B. Smith has been educating buyers on the finer points of foreclosed homes at ForeclosureDeals.com for over ten years. Contact Joseph B. Smith through ForeclosureDeals.com if you need help finding information about foreclosed homes.

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Real estate investment expert Joe Crump teaches zero down investing techniques. Learn foreclosures, short sales, “Subject To”, land contracts, “Multi-mortgage” and other creative real estate financing structures.

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Read the Transcript:

One man’s junk is another’s treasure, but only if you do it this way. Let me tell you how I bought properties in horrible condition, fixed them up and then rented them out or sold them for a heck of a return and how you can, too.

“Dear Joe, not too long ago you sent an email out, selling junk houses in depressed areas for ,000 to ,000 apiece. The areas are horrible. The pictures of the houses are frightening and I can’t figure out how they would make sense for me to buy. Can you tell me how I’m supposed to make money on these kinds of houses? I sure don’t want to work in these areas or even go to them, for that matter. Does this kind of deal make sense?” — Ben Asad, Atlanta, Georgia.

Joe: Not too long ago, I sent out these emails, selling these properties. I had some properties that were ,000 or ,000 apiece. They were in Detroit, Michigan. They were in Cleveland, Ohio in pretty tough areas. I also had pictures of these properties that I put up on the website and they were in terrible condition. These houses had been completely gutted. They have no furnace, most of them anyway. They had no furnace, no water heater, no plumbing, all the copper has been ripped out of the house, etc. Some of them didn’t have windows in them. They were absolute messes.

Joe: I got them cheaply. My goal was to sell them for 5 grand and just make ,000 or so on each deal and get them to an investor and let them take it to the next step. I gave them some ideas on some exit strategies on things they could do to sell them, but to my surprise (maybe I shouldn’t have been surprised) nobody took me up on the offer. I had one guy who was interested in the deal but then he backed out on the deal once he went over to the property and took a look at it, even though the pictures were there. The pictures were bad, too.

Joe: Anyway, I didn’t sell the properties. I have 60,000 investors on my list and nobody wants this. There’s a reason. Either it’s not a good deal like I thought it was (because I think they’re good deals) or people didn’t understand what they could do with them, and they’re afraid of the area, they’re nervous about the process and they don’t want to sell it. I knew that there’s plenty of people on my list that have ,000 they could easily come up with if they thought it was going to make them money.

Joe: So what I decided to do instead is to sell them myself. I had somebody go out there (because this is Detroit and I’m in Indianapolis) drive round to the houses, put lockboxes on all of the houses that actually had doors, and they also nailed a sign (and I don’t usually nail signs to my houses but I wanted them to stay up) Coroplast signs on there that said, ‘,000 down, 0 a month’ and my phone number and my website. I would put it on all of these houses.

Joe: I bought a whole bunch of these houses. I bought them in bulk from an REO thing, so I had a bunch of them that I just paid cash for, which is not something that I normally do, but eventually you’re going to make enough money to where you’re going to have cash and you’re going to want to do something with that cash, and you don’t want to put it into the stock market because you’re just going to lose money there. You want to put it into real estate because if you learn this business, that’s what you know — you have control over your money and your business and you’ll make a lot more money that way. Anyway, I bought these properties and I couldn’t sell them to my list after just one email. I suppose if I had changed things around, I might have convinced people to do it.

Joe: But then I had these signs put up for me and suddenly the phones just starts ringing and ringing and it won’t stop and I’m going, ‘Oh, my. This is going to take a lot longer than I thought it was going to,’ and we immediately started selling these properties. The way I structured it was that I sold them for ,000 a piece with ,000 down, 0 a month, which is about 8% interest over a 10 year period amortized. So, they pay for 10 years, 0 a month plus the ,000 up front to buy this property from me on a land contract. They’re responsible for the taxes and taking care of the different properties.

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