Im looking to purchase a live in flip once my apartment lease expires and I have been exploring foreclosures as a way to do so. I am not totally educated on this part of investing and I am looking for some advice. What is the best way to go about buying a foreclosure? Is there a good place to begin looking? What are some tips and tricks you all have when it comes to dealing with such properties? Ill be looking primarily in the Fort Walton Beach and Destin area, with Destin being my area of choice! Thank you!!
@Account Closed - I'm not an expert on foreclosures (not me). But from what I understand, they are rare at this time in most markets. People are generally employed and making their payments.
However, you can still find REOs and short sales by MLS. Again, those are few and far between, but I've seen a handful on the market at any one time in the Niceville/Shalimar areas the past few months.
Auction is also an option, thought the very limited searching I've done in the area has resulted in next to nothing.
But there are a half dozen big wholesalers in the area with many deals. I haven't really evaluated how good the deals are, however. One DEFINITELY doesn't know what a deal is, the rest seem like they may be decent deals on average. A few gems in there. I'd be happy to forward along the most recent emails from them, that way you can ping them about getting on their lists. Only a minority of the deals are in the Hurlburt/Eglin areas, but hey. All you need is one!
@Charlie Cameron thats what ive been noticing too but i wouldnt mind checking out those emails, im on most wholesalers list in the area but in case im not on any of those, id love to check them out!
Where I live, the county trustee holds a public foreclosure auction every Wednesday at 10am. It is a somewhat complicated process, but it is interesting and fun (except when the homeowner shows up and cries). It's a bit of a crapshoot - most of the time the properties haven't been listed for sale before the auction, so there is no way to get inside them. Sometimes you have to evict homeowners or tenants. I know a few investors who make good money doing this.
@Account Closed if you're a beginner then I would advise not to go with foreclosed properties since you need to buy as-is and no inspection is allowed. There might be major damages in the property and without past experience dealing with foreclosures, you might end up losing money.
If you're confident then look for off-market properties. Do not waste your valuable time on MLS as it's full of intense competition. You can try purchasing a pre-foreclosure list from listsource and start marketing to it. You can send a direct mail to that list which I do or you can start cold calling.
If you have any question or need any help with the list, feel free to send me a DM.
@Lindsey Mote That sounds very interesting. I heard of this before, but im not quite sure how it works in my county, so ill have to check it out for sure. Thank you!
@Nicole Heasley Thank you!
@Ehsan Rishat All fair points, Ill definitely air on the side of caution for this one, Ive never heard of listsource so ill have to pick your brain on it! it looks unique and i like that!