Corvallis, OR · Member since 2015 · 13 posts · 1 vote
Hello All! I am interested in acquiring pre foreclosures to buy and hold as rental properties. I am not a licensed RE agent or attorney, just an investor looking to increase my portfolio holdings. My original plan was to door-knock at potential homes that have received NODs and make cash offers to the owners.
After reviewing some previous BP threads, it seems this is rather tricky legally, since I am not a Foreclosure Consultant. Is there a way for a person like me to legally acquire property in this manner? I would plan to hold the properties longer than 24 months, so as to avoid the 80% equity share. I would avoid renting to the owners in default, since I learned that is also legally fraught. What other considerations are there in this strategy? Is it potentially feasible? Anybody successfully pulled this off? Would love to hear about your experiences and insights.
Hello All! I am interested in acquiring pre foreclosures to buy and hold as rental properties. I am not a licensed RE agent or attorney, just an investor looking to increase my portfolio holdings. My original plan was to door-knock at potential homes that have received NODs and make cash offers to the owners.
After reviewing some previous BP threads, it seems this is rather tricky legally, since I am not a Foreclosure Consultant. Is there a way for a person like me to legally acquire property in this manner? I would plan to hold the properties longer than 24 months, so as to avoid the 80% equity share. I would avoid renting to the owners in default, since I learned that is also legally fraught. What other considerations are there in this strategy? Is it potentially feasible? Anybody successfully pulled this off? Would love to hear about your experiences and insights.
Hi, you'll read and hear about homeowner's rights and protections, foreclosure consultants etc and equity skimming things and how you can be prosecuted etc etc. That being said, I'm in california and have door-knocked for 10 years on pre-foreclosures. Yes I know people who got in to trouble, but thats because the deal they put together took complete advantage of a homeowner, and an elderly one at that, so heck yeah they deserved to be prosecuted. That being said, I work as a realtor and investor to help people avoid foreclosure, of which selling is an option to avoid foreclosure, depending on their circumstances and their needs will depend on how to sell and at what price. Someone who is 5 days away from losing everything at auction is different to someone who just entered the foreclosure process.
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Anyone can purchase property at the foreclosure auction. You must come with the cash. It gets more complicated when you are purchasing before the foreclosure date directly from the owner. You are going to need things like payoffs, reinstatement, etc.
Probably best to talk to your local REIA. From my point of view, I've heard of Foreclosure Consultants more so on the West Coast. So, I'm not really familar with their limitations. I'm not sure if there is a difference between somebody trying to be a consultant to help the homeowner, or if you can still operate as an investor.
Hello All! I am interested in acquiring pre foreclosures to buy and hold as rental properties. I am not a licensed RE agent or attorney, just an investor looking to increase my portfolio holdings. My original plan was to door-knock at potential homes that have received NODs and make cash offers to the owners.
After reviewing some previous BP threads, it seems this is rather tricky legally, since I am not a Foreclosure Consultant. Is there a way for a person like me to legally acquire property in this manner? I would plan to hold the properties longer than 24 months, so as to avoid the 80% equity share. I would avoid renting to the owners in default, since I learned that is also legally fraught. What other considerations are there in this strategy? Is it potentially feasible? Anybody successfully pulled this off? Would love to hear about your experiences and insights.
Hi, you'll read and hear about homeowner's rights and protections, foreclosure consultants etc and equity skimming things and how you can be prosecuted etc etc. That being said, I'm in california and have door-knocked for 10 years on pre-foreclosures. Yes I know people who got in to trouble, but thats because the deal they put together took complete advantage of a homeowner, and an elderly one at that, so heck yeah they deserved to be prosecuted. That being said, I work as a realtor and investor to help people avoid foreclosure, of which selling is an option to avoid foreclosure, depending on their circumstances and their needs will depend on how to sell and at what price. Someone who is 5 days away from losing everything at auction is different to someone who just entered the foreclosure process.
Hi John. Can you tell me roughly how many doors you need to knock on to make one sale? I understand that there may be other variables. Assume the door knocker is experienced in pre-foreclosures and has good sales skills. I just want a number. Thanks.