Hello all! My name is Jabari. I am starting to buy my first rental property and got a list from the township of all the foreclosed and vacant properties in the town. The list includes the address, mortgage representative and phone number. I want to start contacting the representatives but I want to make sure that I know as much as I can before I call. What are some thing that I should already know before I call? What are some questions should I ask? Should I contact the person or group that owns the deed instead? What should I already be prepared to do after contact them? I know there are a lot of questions but I would greatly appreciate if any of these questions can be answered. Please feel free to ask me anything if you need additional information.
Well although I don't know terribly much about this, I will say before you ask anybody anything, you should figure out what YOU are looking for. Although foreclosed properties are great to get a deal on, if its a fourplex and you're looking for a single family, you'll just be wasting your time. So before you start picking up the phone, firmly establish what type of property you are looking for, what price range you are looking for, and then ask those questions first.
Before I called on any specific property, I would want to know what the ARV was on that property. If possible, I would have probably at least driven by the property to get a feel for the neighborhood (if I didn't already know) and see at least the exterior condition of the property. I want to know, before I talk to the property owner, whether an individual or institution, what the max possible offer I could make is...again...before I call them. If the ARV is $100k, and I know I have to be at 70% of that or less, then I know I couldn't possibly offer more than $70k, even if it is in pristine condition. If I call and the owner gives me a number of $95k, this is probably not going to happen, at least not at this time. If it's an individual and I can't convince them to lower their target, maybe I put them on a prospect list and check back occasionally to see if they have a higher level of motivation.
Well I the I narrowed down the exact neighborhood and section that I want to invest in. they are single family townhomes. It is a small are with a lot of foreclosed and vacant propetrries. I am looking to get the properties for less than $40,000 each. The highest priced property has been on the market for almost a year for about $60,000.
It is all part of your personal style. Some like me like to know everything there is to know about the prperty and owner before contacting them. I like to do the research first to see if I can find a motivating factor that I can use as leverage.
Others don't want to waste time doing up front research because you don't even know if the owner will talk to you. You can do some research after you know they have an interest in selling.
Unless it is a small local bank contacting the lender on a foreclosed property is probably a waste of time. These days banks usually just list their foreclosed properties and don't want to deal with individual buyers. If the property is not foreclosed on yet then the only person you can buy it from is the person on the deed. They are the owner.
When I call owners I keep it simple and ask if they considered selling the property. After you get a yes then you can do your due diligence contact them again with your offer.
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