Pre-Foreclosures

[Christy Glenn]

Hello, all, I have been watching some properties going into pre-foreclosure in my areas of interest. Some have a auction date set and some have already passed the auction date. They are just sitting there. Am I missing something? I'm just wondering how on the world I can purchase or acquire these properties at this process before others come running in or they get put on the market.....well, they will eventually end up on market. My company is fairly new to real estate investing, therefore, we are not familiar with the process. I do realize that it does take some time after auction for the home to come up for sale. Any words of insight or suggestions? One thing that may help or hinder is I just passed my EXAM but have to find a investor friendly broker. Thanks!

[Rick H.]

Christy - Since you are so new and probably energetic, enthusiastic and maybe easily distracted by all the new possibilities, I offer several thing to consider:

You can operate both as an investor and as a licensed agent (working for a broker) however you must remember which hat you're wearing at all times. If you work for a branded agency, such as a Keller Williams franchise, the owner/broker may restrict some of your activities by policy. This could restrict the type transactions you seek to become involved in; perhaps not.

If you intend to work distressed situations, study foreclosure and property tax laws in your state. Learn the foreclosure process, the timeline, the milestone dates and the documents that foreclosing lenders use. Same with property tax issues. Learn it well enough that you can explain the basics to a property owner so they will look up to you as an expert.

Suggest you buy a wall map and plot out your high-priority market(s). Also, it's largely a relationship business. In addition to sales and marketing skills, you'll want to build a team of professionals that you can rely on (title, escrow, appraisers, inspectors, contractors) as well as contact as the government agencies you will occassionally visit.