Seeking advice - first foreclosure purchase

[Elizabeth Hernandez]

Hello BP community!

Request: I am a newer investor seeking a mentor or individual experienced in foreclosure sales who would be willing to share some knowledge.

About me: my name is Elizabeth, I am a newer real estate investor (licensed in CO) and a full-time engineer. My first purchase was a duplex which I currently house hack. I am seeking to build my real estate portfolio (primarily long term rentals) with the goal of retiring early.

I recently found a foreclosure listed at auction in an area I am familiar with and where my partner has started to build a team out for his own rental. Given this, this house seems like a great next purchase for us to make. 

I am seeking information on common mistakes to avoid in my first foreclosure purchase (red flags), what are some good signs to look for when analyzing these types of purchases (green flags), and strategies for approaching local banks for financing options. I am aware receiving financing for properties at auction is difficult - but not impossible.

Thank you in advance for your time! 
Elizabeth 

[Drew Sygit]

Most states don't allow you to preview an actual foreclosure that's being sold at the local courthouse.

Make sure you fully understand local foreclosure redemption laws and options!
- You may want to offer cash-for-keys to get them to sign a Quit Claim Deed and vacate early.

Many will also still be occupied by the previous owners or tenants.
- These occupants may strip the property when they leave!

So, you'll need to be prepared for a potential rehab and have reserves.

If occupied, you'll also need to:

1) Negotiate cash-for-keys
- NEVER give any money upfront! ONLY after they vacate. 
We've found that giving the money to a local eviction attorney and letting the occupants pick up a check frm the attorney's office works best.

2) Hire a great attorney that ONLY does evictions.
- Hiring a jack-of-all-trades attorney is a waste of money as they charge too much and make too many mistakes.
Go online to the local courthouse and look for landlord-tenant cases. Interview the 3 attorneys you see the most often on these cases. Don't go with the cheapest - many attorneys are so unorganized that their cases get delayed:(