Foreclosure Deal

9 Replies

Just spotted a foreclosure at 170,000 in a neighborhood where the comps are 220 to 250, sent the realtor this :  

"Hey Joseph,  

Darnell Robinson here, I'm a new Real Estate Investor just getting into this game so if you could bear with me I'd greatly appreciate it.

I'd also like to keep your name and number in my phone for future business if that's OK. 

This property is bank owned correct?

Have there been any offers so far?

What condition is the property in?

Is it occupied? 

Are there any back taxes? 

How long has it been in foreclosure? 

When would be a good time to meet at the property and take a look?

Thanks Joseph!  I look forward to doing business with you.

I'll be looking to rehab/flip homes in Oakland, San Leandro and Berkeley as I go forward so if you have any motivated sellers in these areas, let me know and I'll keep you in the loop on future endeavors as well!"

How do I put the house under contract if it's everything I hope it to be? What kind of contract (wording)? I'd like to rehab it and sell it, but I'm not against wholesale either. Any suggestions,  opinions or advice is greatly appreciated! !

@Darnell Robinson - Sounds like you covered the basics. You might raise red flags by talking about wholesaling in your first email. He/she may think that you are just trying to get the place under contract so that you can assign it to someone else. 

Sounds like you got it, but do some research about making offers for foreclosures. In the offer I made I including things like a satisfactory home inspection. So gave me the option to back out of the deal.

Thanks you guys. It's a bit nerve wracking being brand new. So, in your opinion,  should I use a lender of my own (hard money is the only one I've spoken to) or should I go through the realtor once I feel the property is worth making an offer?  The realtor responded and said he'd contact me later this afternoon. 

@Darnell Robinson - Why would you use a HML? Are you able to qualify for a loan? A HML is going to be $$$.

I actually haven't tried to qualify for traditional. I was talking to the HML people on suggestion from another REI. Would that NOT be the estimate move?

A couple of issues with your questions which would make me doubt your abilities, if I were the listing agent.

Property taxes are irrelevant as bank would have to pay them.

It's a REO, how long it Was (not "is") in foreclosure is irrelevant.

You provided no assurance of your ability to buy, whether cash or financing. If a HML lends you 65-70%, do you have the balance, plus rehab costs?

I'm with Wayne. An average broker in CA is thinking 'is this guy qualified? I have so many qualified buyers right now... why bother with this guy?' But you have to start somewhere. 90% sure the broker will ask for POF before showing...

Thanks guys. Great feedback. 

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