A Couple Questions

A Couple Questions

Real Estate Investor · Albuquerque, NM · Member since 2012 · 3 posts · 0 votes

So to preface this, I gained an interest in doing bird dog work based off an article on BP that I read last week. I am not a real estate agent, and I do not have a license. I really do want to get into real estate investing, and so I thought doing the bird dog work would give me some great experience.

After reading the article I have already found 3 prospective homes in my neighborhood alone that are obviously abandoned. I have done some research and found out that 2 of them are still in court, and 1 has nothing on it.

The 2 homes that are in the foreclosure process are in a nice neighborhood, and other then a lot of weeds growing around them they would have some really nice curb appeal. However, since I just started doing this last week I am stuck on what my next right step should be. A couple ideas have passed my mind, but not sure if that would be the right direction.

1) My initial thought was since these homes are not bank owned perhaps I should contact the owners to see if they would be willing to sell and at what price. However, can I legally do this since I am not license?

2) Another thought was to first seek out some local investors, and approach them about the properties. However, I am not sure if I have enough information for them. I know the names of the owners, legal description, case number of the court docket, and the owner's contact information. Would this be enough information or should I do more digging before presenting this?

Your insight would be most appreciated.

Thanks,
Drew

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  • Investor · Hampton Bays, NY · Member since 2009 · 907 posts · 258 votes
    14y

    Andrew: there is nothing preventing you from finding and contacting the existing owner. Some o the best opportunities are found in this way.

    Before contacting the owner I would prepare myself for the call.
    Research the comps. in the area .
    If you have access to the county auditor web site you can find out how much the current owner paid, taxes, if there are past due taxes etc.

    Once you are armed with this information you would call the current owner to see if there is an interest in selling the property and if so how much does he think he would want for the property.

    I am sure there are wholesalers who will chime in here to guide you since at this point as a buy and hold investor I already know how much I would be willing to pay. So my approach would possibly be different than someone who intends to flip a contract.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y

    Starting out I suggest you just wait on the court issues as that requires some skills in dealing with attorneys and the court system.

    As Michael said, you can certainly approach an owner.

    You might take an option and then step out of the way for a buyer, you'll need to read about this strategy, but it can be a low dollar start.

    But really, you need to find investors, flippers and landlords and find out what they want if these guys are to be your buyers. It's easier to fill the needs of these people than to find and lock up properties that you can't move.

    There are several ways to find these buyer through the court records at the Recorder's Office and just attending an REI meeting in your area might do it. Good luck

  • Real Estate Investor · Albuquerque, NM · Member since 2012 · 3 posts · 0 votes
    14y

    Michael,

    Thank you for your advice. I am sure that is information that potential investors would need.

    Bill,

    That is exactly what I had in mind since I am just starting out. I feel like it is still a great way for me to learn about the REI business and generate a little revenue to use for future business. Would you have any recommended books for reading up on that strategy?

    Thanks,
    Andrew

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    Since the 2 that are in the court system are facing foreclosure, you probably wouldn't be dealing with any attorneys; you'd be dealing with banks (could be worse than dealing with attorneys). You would have to figure out how much these houses are worth, how much the owners owe the banks, and see if that difference makes sense to purchase. My guess is that if they have been abandoned, that they are worth less than what the owners owe the banks.

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