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Bruce Lynn#1 Real Estate Agent Contributor
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Everyone wants to buy a foreclosure until they get to see inside the property.

Bruce Lynn#1 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
Posted Feb 25 2024, 02:00

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.

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Barbara Arroyo Resto
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Barbara Arroyo Resto
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Replied Feb 27 2024, 11:28

Oh,wow this is definitely more work than the buyer from Toledo , Ohio.. I dint think the house he purchase was a big deal. Is only sheet rock .Like one of the colleges said for a rehab and flip is a great deal.Now if you purchase to live in it ..Definitely a loss.

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Michael P.
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Michael P.
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Replied Feb 27 2024, 19:01

On the bright side the ARV in this neighborhood of Toledo is a solid $39,900.

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Barbara Arroyo Resto
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Barbara Arroyo Resto
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Replied Feb 28 2024, 05:33

Good ARV for a single home property.

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Engelo Rumora
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Engelo Rumora
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Replied Feb 28 2024, 06:20
Quote from @Bruce Lynn:

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.


What happened to the good old shoulder barge or accidental door kick haha

I don't ever remember buying a house without getting some eyes on it.

I've always found some a back door or window "open" hehe

If a neighbor approaches me, "No habla ingles" 

😁

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Engelo Rumora
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Engelo Rumora
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Replied Feb 28 2024, 06:27
Quote from @Michael P.:

On the bright side the ARV in this neighborhood of Toledo is a solid $39,900.

Not really mate,

Gordon, Prouty, Walbridge, Colton, Coulburn selling for decent $$$.

Lot's of homeowners buying in the area also.

43609 has come a long way last few years...

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Andrew Syrios
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Andrew Syrios
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ModeratorReplied Feb 28 2024, 14:53

Yeah, I preferred buying REOs where I could actually inspect the property. But those basically don't exist anymore. You need to be very cautious with sheriff sales (not just the property's condition but also checking for tax liens and making sure you're buying a 1st and not a 2nd). 

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Bruce Woodruff
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Bruce Woodruff
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Replied Feb 29 2024, 07:10
Quote from @Engelo Rumora:


What happened to the good old shoulder barge or accidental door kick haha

I don't ever remember buying a house without getting some eyes on it.

I've always found some a back door or window "open" hehe

If a neighbor approaches me, "No habla ingles" 

😁

Yep, I used to drive neighborhoods and look for those deserted looking houses that had potential. Then park down the street and 'accidentally' wander into the back yard, and 'accidentally' stumble through that window. Surprised I didn't see ya there my friend....

That's how you find the best houses. But you can't actually advise people to do this right....?

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Michael Diossa
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Michael Diossa
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Replied Feb 29 2024, 07:12

Not what I expected the comments to be...but i am here for it!

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Alan F.
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Alan F.
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Replied Feb 29 2024, 07:22
Quote from @Bruce Woodruff:
Quote from @Engelo Rumora:


What happened to the good old shoulder barge or accidental door kick haha

I don't ever remember buying a house without getting some eyes on it.

I've always found some a back door or window "open" hehe

If a neighbor approaches me, "No habla ingles" 

😁

Yep, I used to drive neighborhoods and look for those deserted looking houses that had potential. Then park down the street and 'accidentally' wander into the back yard, and 'accidentally' stumble through that window. Surprised I didn't see ya there my friend....

That's how you find the best houses. But you can't actually advise people to do this right....?


 LOL! "Hey sparky let's go to lunch, bring your crawl suit & headlamp" 🙄

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Bruce Woodruff
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Bruce Woodruff
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Replied Feb 29 2024, 07:45
Quote from @Alan F.:
Quote from @Bruce Woodruff:
Quote from @Engelo Rumora:


What happened to the good old shoulder barge or accidental door kick haha

I don't ever remember buying a house without getting some eyes on it.

I've always found some a back door or window "open" hehe

If a neighbor approaches me, "No habla ingles" 

😁

Yep, I used to drive neighborhoods and look for those deserted looking houses that had potential. Then park down the street and 'accidentally' wander into the back yard, and 'accidentally' stumble through that window. Surprised I didn't see ya there my friend....

That's how you find the best houses. But you can't actually advise people to do this right....?


 LOL! "Hey sparky let's go to lunch, bring your crawl suit & headlamp" 🙄


 I'm ready right now, let's go my friend...!

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Nate Marshall
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Nate Marshall
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Replied Feb 29 2024, 08:30

Someone will probably try to wholesale this one. "Just a little damage" 

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Jay Hinrichs#1 All Forums Contributor
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Jay Hinrichs#1 All Forums Contributor
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Replied Feb 29 2024, 08:45
Quote from @Andrew Syrios:

Yeah, I preferred buying REOs where I could actually inspect the property. But those basically don't exist anymore. You need to be very cautious with sheriff sales (not just the property's condition but also checking for tax liens and making sure you're buying a 1st and not a 2nd). 

I have seen folks that did not know basically what they were doing bid and buy seconds with no clue about the first..  And in one instance I tried to warn them.. And the bidder assumed I was trying to talk them out of it so I could buy it.. they ignored me and bought it.

I also bought a first in Vancouver WA .. And when doing inspection prior to auction someone was working on the house rehabbing it.. we bought the first showed up and the folks working on it had bought a second and had no clue on the first and did pretty much the full rehab out of pocket and now lost it all..  the money they bid on the second and the rehab and we got a basically fully rehabbed house for the price of the first..  Now granted this is rare to the extreme but if your the one losing out its painful.

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Replied Feb 29 2024, 08:53
Quote from @Chris Seveney:
Quote from @Bruce Lynn:

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.


 As an investor who invests in distressed debt. What they are showing in that link is normal. You cannot believe how people live.Our typical trashout is 3-5k, most of time water is not on or power, they use the house as one large toilet. Seriously its worse than animals living in these places.

But go ahead and bid it as if it is nice and clean. If you do not bid it as a full gut rehab including removing the floors and joists, good chance you can lose $.


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Replied Feb 29 2024, 08:58

I understand your perspective. However, I am curious to know your reasoning behind considering bidding on a property that requires extensive rehabilitation, including demolition. The costs involved in renovating a distressed property to the same standard as constructing a new home on an empty lot may ultimately amount to a similar total investment. Would you agree with this assessment?

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Nate Marshall
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Nate Marshall
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Replied Feb 29 2024, 09:04

Hence my post. One of my lenders in my group found out that the New Western didn't disclose fire damage to a property. Many lenders wouldn't have discovered this. 

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Shebi Khan
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Shebi Khan
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Replied Feb 29 2024, 10:23
Quote from @Chris Seveney:
Quote from @Bruce Lynn:

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.


 As an investor who invests in distressed debt. What they are showing in that link is normal. You cannot believe how people live.Our typical trashout is 3-5k, most of time water is not on or power, they use the house as one large toilet. Seriously its worse than animals living in these places.

But go ahead and bid it as if it is nice and clean. If you do not bid it as a full gut rehab including removing the floors and joists, good chancb

Bitter truth!

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Dalton Foote
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Dalton Foote
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Replied Feb 29 2024, 10:32

Yes! As a GC and investor foreclosures are the worst when it comes to investors not budgeting enough in there renovation numbers to complete the project! So many unknowns and very difficult to base it on average sq ft pricing. So many variables. Great post! 

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Glen Wiley
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Glen Wiley
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Replied Feb 29 2024, 12:40
Quote from @Engelo Rumora:
Quote from @Bruce Lynn:

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.


What happened to the good old shoulder barge or accidental door kick haha

I don't ever remember buying a house without getting some eyes on it.

I've always found some a back door or window "open" hehe

If a neighbor approaches me, "No habla ingles" 

😁


 Keep it credible....

No hablo ingles.

;)

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Rich Hupper
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Rich Hupper
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Replied Feb 29 2024, 12:54

I just got off the phone with a law firm doing the foreclosure legal work for a bank. I asked them if the bank would sell the note. The law firm said no. If I am willing to pay whatever it is to make the bank whole why would they immediately dismiss me?

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Engelo Rumora
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Engelo Rumora
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Replied Feb 29 2024, 13:13
Quote from @Glen Wiley:
Quote from @Engelo Rumora:
Quote from @Bruce Lynn:

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.


What happened to the good old shoulder barge or accidental door kick haha

I don't ever remember buying a house without getting some eyes on it.

I've always found some a back door or window "open" hehe

If a neighbor approaches me, "No habla ingles" 

😁


 Keep it credible....

No hablo ingles.

;)


I have a credible shoulder mate

A little nudge always worked 😁

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Engelo Rumora
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Engelo Rumora
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Replied Feb 29 2024, 13:18
Quote from @Bruce Woodruff:
Quote from @Engelo Rumora:


What happened to the good old shoulder barge or accidental door kick haha

I don't ever remember buying a house without getting some eyes on it.

I've always found some a back door or window "open" hehe

If a neighbor approaches me, "No habla ingles" 

😁

Yep, I used to drive neighborhoods and look for those deserted looking houses that had potential. Then park down the street and 'accidentally' wander into the back yard, and 'accidentally' stumble through that window. Surprised I didn't see ya there my friend....

That's how you find the best houses. But you can't actually advise people to do this right....?


True mate,

Always needed to get eyes on the property.

Even if it meant sticking my nose on every window and looking through.

Even the basement windows lol

I think it's too high risk buying completely blind and not doing at least that.

Ideal world, the back door is unlocked.

And luckily for me "It was always unlocked" by me hahahaha

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Engelo Rumora
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Engelo Rumora
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Replied Feb 29 2024, 13:23
Quote from @Bruce Woodruff:
Quote from @Alan F.:
Quote from @Bruce Woodruff:
Quote from @Engelo Rumora:


What happened to the good old shoulder barge or accidental door kick haha

I don't ever remember buying a house without getting some eyes on it.

I've always found some a back door or window "open" hehe

If a neighbor approaches me, "No habla ingles" 

😁

Yep, I used to drive neighborhoods and look for those deserted looking houses that had potential. Then park down the street and 'accidentally' wander into the back yard, and 'accidentally' stumble through that window. Surprised I didn't see ya there my friend....

That's how you find the best houses. But you can't actually advise people to do this right....?


 LOL! "Hey sparky let's go to lunch, bring your crawl suit & headlamp" 🙄


 I'm ready right now, let's go my friend...!



Haven't walked a property in years and just did one with my team a few weeks ago.

I forgot the thrill of seeing these things derelict and then fixing them up.

What a pleasure to see the transformation.

What started as a simple dream for me of moving to the US and buying, fixing, holding a few properties and moving back to Australia turned into thousands of rehabs, many companies, staff and monsters with 17 heads lol

It's nice going back to the basics of how it all began.

Just simply checking out distressed properties, negotiating, buying and fixing them up.

Ahhhh, the good old days 🙏
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Bruce Woodruff
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Bruce Woodruff
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Replied Feb 29 2024, 14:00
Quote from @Engelo Rumora:
Haven't walked a property in years and just did one with my team a few weeks ago.

I forgot the thrill of seeing these things derelict and then fixing them up.

What a pleasure to see the transformation.

What started as a simple dream for me of moving to the US and buying, fixing, holding a few properties and moving back to Australia turned into thousands of rehabs, many companies, staff and monsters with 17 heads lol

It's nice going back to the basics of how it all began.

Just simply checking out distressed properties, negotiating, buying and fixing them up.

Ahhhh, the good old days 🙏

You are spot on! It is all about the thrill of the chase, the analysis, the risk v reward... It is like a drug once you get bit, isn't it?

I am still enjoying it. No plans to stop.

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Bruce Woodruff
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Bruce Woodruff
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Replied Feb 29 2024, 14:01
Quote from @Engelo Rumora:
Quote from @Bruce Woodruff:
Quote from @Engelo Rumora:


What happened to the good old shoulder barge or accidental door kick haha

I don't ever remember buying a house without getting some eyes on it.

I've always found some a back door or window "open" hehe

If a neighbor approaches me, "No habla ingles" 

😁

Yep, I used to drive neighborhoods and look for those deserted looking houses that had potential. Then park down the street and 'accidentally' wander into the back yard, and 'accidentally' stumble through that window. Surprised I didn't see ya there my friend....

That's how you find the best houses. But you can't actually advise people to do this right....?


True mate,

Always needed to get eyes on the property.

Even if it meant sticking my nose on every window and looking through.

Even the basement windows lol

I think it's too high risk buying completely blind and not doing at least that.

Ideal world, the back door is unlocked.

And luckily for me "It was always unlocked" by me hahahaha


 Lol, yeah, I gotcha. I can't believe now some of the neighborhoods I ventured into...but I always had my friends: Mr Smith and I'm sure you know his pal...

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Engelo Rumora
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Engelo Rumora
Property Manager
  • Investor
  • Toledo, OH
Replied Feb 29 2024, 14:10
Quote from @Bruce Woodruff:
Quote from @Engelo Rumora:
Haven't walked a property in years and just did one with my team a few weeks ago.

I forgot the thrill of seeing these things derelict and then fixing them up.

What a pleasure to see the transformation.

What started as a simple dream for me of moving to the US and buying, fixing, holding a few properties and moving back to Australia turned into thousands of rehabs, many companies, staff and monsters with 17 heads lol

It's nice going back to the basics of how it all began.

Just simply checking out distressed properties, negotiating, buying and fixing them up.

Ahhhh, the good old days 🙏

You are spot on! It is all about the thrill of the chase, the analysis, the risk v reward... It is like a drug once you get bit, isn't it?

I am still enjoying it. No plans to stop.



It sure is mate,

What "killed" the fun for more is scale.

10+ deals per month, 30+ in house staff.

Different devisions like property management, rehabs, maintenance, brokerage, building tech, personal investments, etc...

Came full circle mate.

Less is more and not looking to break any records nowadays.

Doubled revenue and profits first 5 years lol

Became a monster with 17 heads...

I want to get old like you and Jay so health and life first now hahaha

Jokes and love you fella's