making offer on foreclosure property before auction

5 Replies

Hello everybody,

Brand new investor here .I been trying to buy property to flip.Nothing on mls .I did attend foreclose auctions but don't feel comfortable to buy properties without getting a inspection or at least to get inside ,most  properties are occupied.I was wondering what if I send the offer to the property owner before auction and have 10 days due diligent in contract .I have a cash no need for financing .Please let me know what you think or if you can saggest anything else .

Thanks 

Maka 

Most likely, that will be a waste of time. Typically, the Bank/Seller has a contract with an asset disposal company and they have their strategy to list/market their REO inventory. Reach out to your local wholesalers and call all of the folks with the "We Buy Houses" signs then ask to be put on their cash buyers list. Dig deep on your MLS, deals are there but you have to dig for them. Look at recent price reduction and back on market properties daily to find deals. We have recently purchased many Estate properties which have bene working well. I have reached out to the reputable attorneys in my town that do a lot of estate work. They send me at least a deal per month. Tax foreclosures work as well. I use all of these techniques everyday to find deals. My goal is to find 5 properties each week to start a new flip. I have not called or emailed the lenders in years as I found I get a better return on y time invested if I look elsewhere.

Hi @Maka Aptsiauri

I will have to agree with the above. If it is occupied odds of getting inside without a court order and completed eviction are about zero. Most auctions with the bank are simply selling "their interest" in the property. So if someone is living there, you have to own it to evict them. Nobody is going to let you inside to do an inspection on their house so that you can offer a "fair" offer to the bank before you kick them out. REO/Bank auctions are high risk/high reward opportunities, a little too high risk for me personally.

Good Luck!

There are people who do exactly what you wrote - make offers to the owners facing foreclosure in advance of the foreclosure auction. Many of these owners might be a bit difficult, but if you do take this approach be sure to give enough time so that you can close before the auction date.