Newbie From Indianapolis Area-Foreclosure Question

9 Replies

Hey Everyone! 

Looking forward to learning from you all. I purchased my first home in 2015 in the Fishers area as a live in flip. I just sold it last week and am on the hunt for another one before I try my hand at rental properties and such.

My question for anyone or those who invest in the Indy area is, how do you find foreclosures? After speaking to the guy who did the appraisal on my home, he made it seem like you have to be on the insiders network with the banks to be notified of the good properties. The ones that the successful investors don't want, are then put on the market. If this is the case, how does one find foreclosures when just starting out?

I appreciate any and all feedback! 

-Emily 

Hey @Emily Kelly welcome. My two cents is to hook up with a local agent...or if you are doing another live-in...hudhomestore.com. Take advantage of the first look period (Freddie Mac has a parallel program as well).

Outside of that, there are a bunch of subscription services...if you are looking for an early jump, Zillow has moderately accurate pre-foreclosure data...I would ultimately recommend ListSource, but it's pricey (my minimum commitment is $1,800/yr)...or try ZBuyer. 

This is a great question.  I'm also a newbie from Indy. If you'd like to chat a little, please connect with me on here and/or come to the CIREIA meeting tomorrow evening in the NW side. 

Foreclosures aren't as plentiful on the market as they used to be. These days they mostly end up on auction sites (hubzu, for example). Especially in good markets (like Fishers) banks have been holding onto their inventory and renting them out. How long that will last is anyone's guess, as that's not their business model.

Instead of focusing solely on foreclosures, I would suggest looking for motivated sellers, either by direct mail or working through the MLS with an agent. You can also reach out to wholesalers and get on their mailing lists - there are more than a few that focus on the Indianapolis area. I think everyone is running up against the same issue of low inventory, so there is a lot of competition for not a lot of properties, but there are still deals to be had. You have to move quick, though.

I'm an agent and investor here in Indy, so if there's anything I can do to assist you in your efforts, let me know!

Welcome to BP @Emily Kelly !

@Erin Donlan nailed it - ANY inventory is tough to find, let alone something "nice"...

You might try the Hamilton County Sheriff sale coming up soon.

- it's always good to see another Hoosier utilizing this great site!

Of course, you need to read The Ultimate Beginners Guide to REI here on BP

If you haven’t already, please read/listen to these books ASAP!

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-... - LISTEN TO THIS TODAY!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

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BiggerPocketsPodCast -I hear #136 is exceptional!

@Emily Kelly I've had some luck with foreclosures and have some thoughts for you. PM me if you are interested and I'll let you know what I've been doing lately.

@Emily Kelly right now, much of the foreclosure and even HUD market is not available as it used to be. Doing a live in flip will give you an advantage with HUD as owner occupants have first rights to the inventory and more occupants are buying than a couple of years ago leaving just scraps for the investors. There are some people still buying foreclosures directly from the bank, but even that is drying up and most the homes left have little to no value. The listing descriptions look something like "Investor Special! Rundown, fire damaged home on the corner of Ghetto Ave and Hood St. Get it before it's gone!!!" :)

Right now, many of my clients are buying off the MLS and I've had 3 clients buy 5 properties in the last month that were on the market for 48 hours or less. There is tons of competition and the "real" deals are moving very quickly. You can either learn to market yourself to different types of potentially motivated sellers or position yourself to be a hawk with closing power on the MLS. I think that your best bet would be to capitalize on HUD homes, but you may be restricted on how long you have to reside in the home (not sure what the seasoning time-frame is, someone here will know though) so it may be "tricky" to turn it into a rental right away.

Regardless of any of that, investors find new places to scout inventory every few years. Tax sales, foreclosures, HUD homes, negotiating short sales, various auctions, direct marketing, MLS, FSBO, craigslist, distressed investors, etc. It varies as the supply, demand, and retail markets change. Once a new market opportunity is identified, investors flock to it and it usually dries up in a year or two. Cash buying power and being a proven, quick closer goes a long ways toward capitalizing on the best opportunities.

Right now, it seems to be tough because the retail market is coming back and we are competing against retail home buyers which drives up the prices and leaves the investors with more distressed properties. Even that will change with time. Pay attention to the markets, the ease of money coming from banks, and where the other investors are moving to.

@Emily Kelly I completely agree with @Ross Denman on the HUD homes. You have a better opportunity than most investors because you will be living in the home. Matter of fact with first look initiative you could find a fantastic deal.

Originally posted by :

Right now, many of my clients are buying off the MLS and I've had 3 clients buy 5 properties in the last month that were on the market for 48 hours or less. There is tons of competition and the "real" deals are moving very quickly.

Less than 24 hours usually

You can either learn to market yourself to different types of potentially motivated sellers or position yourself to be a hawk with closing power on the MLS. I think that your best bet would be to capitalize on HUD homes, but you may be restricted on how long you have to reside in the home (not sure what the seasoning time-frame is, someone here will know though) so it may be "tricky" to turn it into a rental right away.

1 year

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