How often do you find good deals on foreclosures in Orlando, FL ?

15 Replies

Anyone in the Orlando area - Wondering if finding a decent deal (price and condition) is actually an attainable goal in the Orlando area? We will be relocating back to Florida after being away for 6 years and just trying to get a feel for whats our odds may be for finding deals that work?

@Melissa Hasan  Hey there! I am with an investor friendly title company here in the Orlando area. As far as "good deals" I couldn't tell you better than some investors here. But I can tell you that foreclosures for us have slowed down the end of 2014 but now have picked back up pretty good. If your willing to travel outside of Orange or Seminole county I bet you will find more deals and better deals. There is so much competition here in those counties.

Hey @Melissa Hasan  

I moved here (Orlando) from Portland a year ago, so welcome back! (whenever you get here).

I've found some great foreclosure deals, but as @Ryan Kopczyk  said, you're going to do better outside of Orange County.  There is A LOT of competition for foreclosures in the Orlando area and we get multiple offer disclosures on almost every property we put in an offer on.

I've got a decent feel for the market, so feel free to reach out anytime.

@Ryan Kopczyk  is absolutely correct.  Orange and Seminole county is tough.  There are a lot of investors in the area.

If you are referring to the auction foreclosures.  Orange county you can go right online and see what properties have sold for.  You might be confused as to why some properties have sold over market value.  It's the auction your supposed to be getting a deal right?  Well the hedge fund guys are bidding and they are just scooping up properties.  

For Seminole auctions it's still done in the court house, but there is a group of guys I refer to as "the good ole boys".  For new-comers they will try and punk you out whatever means.  Overbidding you, leaving notes to the owners on properties you bought telling them to object etc.

For foreclosures that have already been through the auction and the bank has bought them back. The property will be put on the MLS. Good properties go fast and always have multiple offers. @Andrew Davis is a great source to reach out to. He's been through the rodeo of REO properties and could give you some insight of the process.

All the best to you!  Happy investing!

Everyone here is completely right as far as the competition goes. Unfortunately for newbies in Orlando it can be hard to start out without reaching out to people who are already established in our market. But a lot of people are willing to wholesale the deals that they get(like myself) and still have the numbers work for everyone. I think the most important thing is knowing when to be patient and pass, and knowing when to strike, and move quickly on a deal so that no one else can beat you out on it. 

@Melissa Hasan  Everyone on here is correct about the Orlando market. The main thing I tell the investors who worried about the spreads is to look at days on market for the comps. Your spread maybe a little tighter than you like, but your chance of turning your money and making it work for you is higher than some of the outskirt areas. 

I purchase homes in the area as well as run a wholesale office. I close all my deals with a hard money lender in the area. Some people complain about fees, but it allows me to be in a house for less cash out of pocket and the numbers still work. Good luck!

@Erin Wysocki  What you have posted is what I heard today from someone that does the whole auction thing.  It seems like a pretty tough arena to pierce into.  do you know anyone generous enough to help with the process?

In the meantime, i will persist with educating myself and will keep going to the auctions when possible.  I know that this will not be an easy route and I am prepared to battle.  I have time on my side.

@Sam Alpha  Yes it's been a pretty interesting experience.  The property that I did purchase from Seminole, one of the "good ole boys" taped a letter to the owners car in the middle of the night.  This is what it said

"Your house was sold at auction.  You should file an objection to the sale at the courthouse.  If you are a tenant or if you are an owner that shares your house with a tenant, you may qualify protection under the Obama tenant law, which will allow you to stay in your home until the end of your lease plus 3 months afterwards.  By filing an objection you will at least get more time to stay.  Also, you can ask the new owner to pay you to leave, pay you as much as $5,000 or more to leave and you should take everything you can from the house.  Take all of the appliances, the kitchen, the bathroom vanities, pool screen cage (my property does not have a pool) pool equipment, a/c, hot water heater, blinds, flooring, ceiling fans, ceiling lights, etc, etc.

If they don't agree to pay you $5,000 to leave, take or sell everything in the house including the entire kitchen.  Sell everything in the house before they kick you out.

By objecting to the sale you will be able to stay in your home for probably another month for free, maybe longer.  You must hurry, you will only have 10 days from the date of the foreclosure sale to file an objection.

Again you will get free stay for about a month or longer.

Even if you do not object to the sale of your home at the auction, and if you come into contact with the new owner, you can still ask them to pay you to leave.  Ask them for at least $5,000 or you will sell or take everything in the home down to the kitchen sink!  If the new owner does not contact you then take or sell your kitchen, put appliances on Craigslist, sell or take everything in the house, strip it clean!

Place craigslist ads for your entire kitchen, a/c, doors, bathrooms, screen enclosure, light fixtures, fans, appliances, etc.  If it's a good price, you can ask to get people to pay you for your kitchen, a/c, doors, bathrooms, screen enclosures, light fixtures, fans, appliances, etc and also remove it too!

Think about it, you will make money and not have to lift a finger!

Well obviously they filed an objection and now it's in my attorneys hands which makes my money be tied up longer plus attorneys fees.  

I heard this was not the first time they had pulled this.  I guess in the past it has worked.  Unfortunately for them, I'm from Irish heritage and my family is from Boston.  (you can connect the dots).  So I'm not one to be scared easily.  

I know someone that will walk you thru the process in Osceola county.  PM me and I will send you his contact info.

@Erin Wysocki  wow!!! That is really dirty! On the other hand, you should take it as a compliment in that they found you threatening enough to go so low. 

I'm really sorry that you're stuck in such a situation, when all you were trying to do was secure your financial future. Be assured, that karma does come around full circle.

I do know, that from time to time, you can pick up a good deal at the foreclosure auction. Once rehabed, you can stick it on the MLS and make a nice $20-25k. I'm getting myself educated with the procedure and will be seeking some help from the old-timers that do this in a different area. I feel that everyone has a right to go out there and place their bid, without having to worry about consequences. In saying that, I plan to be as low-key as possible.

Erin, I hope that your incident has only strengthened your resolve to get in there and claim your right. If you are interested in combining resources, let me know. It may just help in making our journey a little more easier.

In the meantime, I hope that this situation of yours gets resolved efficiently and effectively. If I come across anything that I feel may serve some sort of value, I will get in touch with you.

Until then, keep your head up high. You have a lot to be proud of.

Thanks @Sam Alpha  

It's the nature of the business.  It's just like when you do a rehab and an unforeseen issue comes up.  Only this unforeseen issue was a person lol.

The numbers for this property are really good, so a couple bumps in the road are ok.  Even if they do strip everything, I'll be saving money on demo.

Since the margins for Orange and Seminole have been slim I have been looking into different counties.  I hate driving all that way for a rehab but if the numbers make sense it's worth it. 

Hi @Erin Wysocki  I really like your optimistic and collected attitude.  It's true that in RE unforeseen circumstances do come up.  However, this situation here is one where you can't move forward until the "tenant" moves out.  

Are you going through the eviction process? 

Does the Obama tenant law protect the "tenant" in this case?.  

Regardless, at least you will be an expert at the eviction process so your future tenants better watch out ;-)

Wishing you an easy out on this and keep us updated as I think there may be a good lesson or two to learn from this.

Originally posted by @Erin Wysocki :

Thanks @Sam Alpha 

Since the margins for Orange and Seminole have been slim I have been looking into different counties.  I hate driving all that way for a rehab but if the numbers make sense it's worth it. 

 The margins in Orange and (esp.) Seminole county are slim for a reason.  There are many areas that are classified A and have the advantage of having good rents with decent cash flow, "good" tenants and VERY LOW vacancy rates.  This combination allows properties to become low maintenance  and require very little attention.  You save a lot of time and hassle with properties like this, which indirectly also equates to $$$.

I am not as familiar with O.C as I am with S.C.  Besides, Lake Nona, College Park, Dr. Philips and Celebration, which areas would you classify as A?

@Sam Alpha  Those are all great areas.  I would add Winter Park (some areas), Thornton Park, Delaney Park, Windermere, Oviedo and Reunion.  

For the tenants, there is a hearing scheduled in February and I have an attorney on the case.  So now it's just a waiting game until it goes in front of the judge.  The Obama act would not come into play because they are not actual "tenants".  I'll keep you updated.

@Erin Wysocki  that is a nice little pick of choices you have there.  I agree with on them.  However, I am not familiar with T.P. and D.P.  Btw, what do you think of downtown (as in, the heart of down town)?

Wishing you the best with the case and here's to a fast approaching Feb.

Hi Erin, just read this thread today. Any update on the court proceedings and outcome of the house? Are the 'good ol' boys' still at large?

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