While researching a property that I was interested in buying as a rental propertry, I end looking at the paper trail of some people that are actively and profitable involved in buying trustee sales in Raleigh, NC.
I have been thinking about the steps to replicate their business, but I am struggling with the little details that will mean the difference between dead or life (such us:proper due dilligence, problem with people living in the house, house condition).
I am interested discussing the process with members of the forum and also will also consider meeting potential local contributing work partners.
What are your questions?
Some of us here on BP are Wake County foreclosure investors. While I appreciate what you are saying about the "little details", one of the bigger detail we often deal with has to do with financing. Trustee sales are all cash and not like a traditional real estate transaction.
Regarding due diligence you can take classes from Wake Tech Community College. Good information taught by a foreclosure attorney for virtually nothing. If his course isn't offered this time around, Email me and I can send you his contact information. Regarding people in the house, see Purchased foreclosure home with occupants posted by another Wake county courthouse purchaser.
Some further reading here:
Thank you for your reply:
I have been trying to educate myself by looking at the paper trail of all the transations made by another investor during the last calendart year. I have also visited the houses (from the outside only) and the neighborhoods. This investor has been in the business for 10+ years and operates in Raleigh, NC.
Based on the turnover rate and the apparent gross profitability of this investor, i dont think by this time in history he is taking any chances and already has a way to target houses with no need of significant repairs, with no serious hidden physical or legal problems and most probably are no inhabitted by difficult people (if any).
A side note: All my R.E investment experience amounts to two home purchases following the traditional path (bank loan and agents). I have absolutely no experience or previous knowlege on any of the procedures or paperwork involved in Trustee Sales, so please excuse if my questions may sound too basic.
I am very aware that the truste sale is an only cash business. I am also working on a plan to allow me the needed resources.
1. How do you research Tittle and Liens?
So far, I am looking at services offered by "investor oriented" paralegals ($90 to $150); however, I don't see any kind of job warranty and that make me nervous.
Should I better go for the services of a Tittle insurance company that may also issue an insurance commitment ($300+)?
Since reaserch will be done as part of the bidding selection process, this would be a constant growing cost.
2. How do you asses or gauge the internal condition of the property?
I definitively not counting with collaborative tenants or owners.
3. Do you market your properties by yourself or enlist the help of a R.E agent?
4. Will the foreclosure sale errase all other liens and loans but Tax liens and IRS?
5. After the foreclosure sale a Trustee Deed is issued. When/How I can get a marketeable general warrantry deed?
6. To finish this post, please let me ask you perhaps the most inportant question:
What else should I be asking you? What important points should be considered in this kind of business?
Thank you for the links. Read each of them. Became aware of some other aspects to check.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.