I'm new in real state investing and I would like to know what are your thoughts about REO foreclosure and auctions and if there are some steps that would make this process easier for someone without experience?
I'll be using private money or hard money to buy these properties, my main goal is to fix and flip and sell them.
REO's are typically listed on the market by the bank's selected RE agent. Foreclosure auctions are at the courthouse steps typically and being new is very dangerous there. I would not recommend going down this road for your first purchase without having a partner who has experience in this arena. Your best bet for deals being new would be to direct market to potential distressed homeowners until a lead comes to contract. Having your team in place is also something you should have before you start making offers or sending mailers (or whatever direct marketing you intend to use).
REO's are typically listed on the market by the bank's selected RE agent. Foreclosure auctions are at the courthouse steps typically and being new is very dangerous there. I would not recommend going down this road for your first purchase without having a partner who has experience in this arena. Your best bet for deals being new would be to direct market to potential distressed homeowners until a lead comes to contract. Having your team in place is also something you should have before you start making offers or sending mailers (or whatever direct marketing you intend to use).
@Elianna Zuluaga I think @Will Barnard brings up a good point--unless one has a background in finance, real estate, and real estate law, buying and rehabbing a foreclosure property with hard money may not be advisable.
Also, as Will points out, having a solid team in place is pretty essential (e.g.; a skilled mortgage officer, a good contractor, and a good realtor). I'm happy to provide references to the mortgage officer, contractors and realtor I've worked with over the years--just message me if you'd like any of that info.
Just to clarify on the comments from Leo above, before the home is sold at the courthouse steps (trustee sales), the owner of record is still the owners and not the bank and you need cashiers checks (cash) at the auction to bid. Once it is foreclosed and not purchased by anyone at the auction, it becomes an REO. Once the bank is ready to sell it, it will likely go on the MLS and then you can buy the REO with hard money or any loan so long as your offer is accepted with said terms.
REO's are typically listed on the market by the bank's selected RE agent. Foreclosure auctions are at the courthouse steps typically and being new is very dangerous there. I would not recommend going down this road for your first purchase without having a partner who has experience in this arena. Your best bet for deals being new would be to direct market to potential distressed homeowners until a lead comes to contract. Having your team in place is also something you should have before you start making offers or sending mailers (or whatever direct marketing you intend to use).
@Elianna Zuluaga I think @Will Barnard brings up a good point--unless one has a background in finance, real estate, and real estate law, buying and rehabbing a foreclosure property with hard money may not be advisable.
Also, as Will points out, having a solid team in place is pretty essential (e.g.; a skilled mortgage officer, a good contractor, and a good realtor). I'm happy to provide references to the mortgage officer, contractors and realtor I've worked with over the years--just message me if you'd like any of that info.
Happy house hunting!
thank you @Leo R. I will be assisting to the REI meeting today. will you be there?
@Elianna Zuluaga I think @Will Barnard brings up a good point--unless one has a background in finance, real estate, and real estate law, buying and rehabbing a foreclosure property with hard money may not be advisable.
Also, as Will points out, having a solid team in place is pretty essential (e.g.; a skilled mortgage officer, a good contractor, and a good realtor). I'm happy to provide references to the mortgage officer, contractors and realtor I've worked with over the years--just message me if you'd like any of that info.
Happy house hunting!
thank you @Leo R. I will be assisting to the REI meeting today. will you be there?
I was not at the REI meeting --the skiing was too good to pass up today, so I was on the mountain :) I've been thinking about attending a SLREIA meeting at some point in the future, though...
REO's and foreclosures are a tricky and risky game. I would not recommend this to be your first investment property. Every state has different regulations and keeping up with current laws are crucial. Most times these are site unseen and you have no idea the condition of the property, some don't have leases so you have to go through the eviction process.
@Elianna Zuluaga I think @Will Barnard brings up a good point--unless one has a background in finance, real estate, and real estate law, buying and rehabbing a foreclosure property with hard money may not be advisable.
Also, as Will points out, having a solid team in place is pretty essential (e.g.; a skilled mortgage officer, a good contractor, and a good realtor). I'm happy to provide references to the mortgage officer, contractors and realtor I've worked with over the years--just message me if you'd like any of that info.
Happy house hunting!
thank you @Leo R. I will be assisting to the REI meeting today. will you be there?
I was not at the REI meeting --the skiing was too good to pass up today, so I was on the mountain :) I've been thinking about attending a SLREIA meeting at some point in the future, though..
REO's and foreclosures are a tricky and risky game. I would not recommend this to be your first investment property. Every state has different regulations and keeping up with current laws are crucial. Most times these are site unseen and you have no idea the condition of the property, some don't have leases so you have to go through the eviction process.
thank you so much, @Eliott Elias. I will follow your advice.
you explained it in a simple way and I do appreciate that since I'm staring.