4 homes going to foreclosure-please advise

I ran an ad-hopefully for a potential "flip", newbie, the lady called saying she has 4 houses that will go into foreclosure. How to deal with this dilemna and help her and me? Suggestions much appreciated.

Edited: 06/26/2010 at 10:21AM

James Harkness

Real Estate Lender · Philadelphia, Pennsylvania

229 posts
2343 Influence
4 Awards

Icon_minipost Nov 03 '09, 12:01 AM

Without knowing the details of each of the properties, it is dificult to discuss strategy and whether there are deals here or not. Preforeclosure would get me thinking about short sales though. They can be very cumbersome and time consuming for a newbie.

Edited: 06/26/2010 at 10:21AM

Brian Haskins

Real Estate Coach · St. Louis, Missouri

421 posts
1984 Influence
2 Awards

Icon_minipost Nov 03 '09, 06:13 PM

Well in most cases if its headed into foreclosure they will need to be discounted or a shortsale done on them to get enough equity to make a profit. I recommend to all my new students to stear clear of foreclosure because you don't want to get involved and try to flip this house and have the lady rely on you and then if you can't get it done and she losses the house its bad news. If you want to give it a shot make sure your upfront with her and don't tie the houses up under contract unless you will close on them. I would suggest if you haven't ever done a shortsale before, try to team up with someone that has and split the deals with them.

Brian Haskins

Edited: 06/26/2010 at 10:22AM

James Ward

Real Estate Investor · Ocala, Florida

748 posts
19653 Influence
18 Awards

Icon_minipost Nov 03 '09, 07:12 PM

If you are considering to get the properties, then a few items should be planned first:

1) If you are not experienced, get help from someone that has the needed experience.
2) Get all the details from the property owner to better look over the potential deals.
3) Get what the property owner is expecting. She might have different plans than yours. Talking is the only way to find this out.
4) You must decide what part in all this you want to play.

If you want advice from us on this site, please get this info and we will be better equipt to assist.

James

p.s.: If the properties are on or near St. Simons, I might be interested in working out a deal with you. (Just a thought!)

Edited: 06/26/2010 at 10:22AM

Luis A.

Real Estate Investor · Atlanta, Georgia

201 posts
1759 Influence
4 Awards

Icon_minipost Nov 04 '09, 06:22 PM

If they have not been foreclosed then you would have to do a short sale and then you are in for a loooong ride.

Get as much detail as possible about what is owed on them and the potential, you don't want to be taking over 4 dogs.

Ask the lady why she has 4 properties going into foreclosure.

Edited: 06/26/2010 at 10:23AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
15 Awards

Icon_minipost Nov 04 '09, 09:58 PM

Its possible she has equity and there's no need for a short sale. Lots of houses with equity end up in foreclosure when the owner has no cash for the payments and no cash to get them in condition for a sale and no time to wait for a sale.

We really need to know more details about the houses and what you want to do with them to give a useful answer. By flip do you mean wholesale or fix and flip? If you're wholesaling, what do your buyers want?

Edited: 06/26/2010 at 10:23AM

Jon Holdman, Flying Phoenix LLC