What do I specifically look for at the Courthouse?

Question

As a newbie looking for "deals", beyond just looking in the MLS, what do I look for at the Courthouse and what area of the Courthouse do I concentrate on?  I plan on going today as I feel as though the MLS is light on good deals right now.

Wayne Brooks · Answer

You're looking for the "owners that will sell to me for half price list".  Just ask the clerk where they keep it.

Account Closed · Answer

• Don't give up on the MLS--- forget the listed properties for a while, you should look at and visit the sellers of EXPIRED listings. 
• An expired listing is a failure to sell a property. Who failed, the agent for accepting a listing that was to high or the seller for insisting to list it to high.
• There is only one reason a property does not sell----- Price, Price, Price! (Oh, three reasons!)
• Find the seller and you'll have an opportunity to make a deal.
• If you can't find the seller or don't want to try, call the agent who had the failed listing, ask "are you still accepting offers on the property?" Write an offer 30% below the last list price, do, this to open negotiations.
• NOW to the court house, a place where I have found many deals!

• Sit in rent court, listen to the cases, listen to what the landlord is saying, the defense of the tenant; write down the address, meet the landlord out side the court room, ask "excuse me, I am looking for rentals, would you know of anyone who wants to sell their property?"
• A great lead is when the tenant shows up but the landlord does not, he loses his case, go track down that owner and talk to him about the case he just lost, offer your services, he may want to sell to you.
• Help people fill out their eviction complaint form at the court house, the form is usually misunderstood and if  not completed right to satisfy the court clerk, they require them to do it over, it can be frustration. Engage people in conversation.
• Next go to housing court, this is where owners are summons to appear for not abating a housing code violation. You'll find many motivated sellers here (since this could be a criminal charge and jail time). Keep tract of the case number and address of the property, meet them, offer your services.

• Have fun, be friendly, talk to everybody, smile and be kind to other. The deals will come to,faster than you think.
• Always be ready to write an offer; carry your tools, a skinny contract offer, a blank check and knowledge of creative financing.

James Bitakis · Answer

Sarcastic comments not necessary.  We're all here to learn. Grow up.  Really.

Rick H. · Answer

What info would you consider essential to contact a principal and determine if what they have is something that you can either buy equity or cash flow at a discount.?

Actually, @Wayne Brooks is about right. If you have not studied and don't understand real estate principals and the fundamentals, you won't know what to look for because you won't know what a deal looks like.

You are competing in a world of serious players who have done their homework, paid their dues, performed the research, made the business connections and now they typically have too much capital chasing too few deals.

Where does that leave you? Not a very solid place, now.

I strongly suggest you study to get your real seats te agents license to start. This will better prepare you to learn the fundamentals. But that won't make you any money.

How are you going to make any money if you don't know how to add value to a transaction? You need to know that. You need to know exactly how you will create perceived added value. And you will need a way to be certain that you get paid when you've done your job.

You'll need tools to determine values, review recorded documents and professional business relationships.

Probate is really not a very good place to start. Too many complex variables. Personally, I'd re-think the mortgage default niche market and learn to work with principals in default prior to sale and find ways to split equity.

Chris Martin · Answer

Charles, I would recommend not doing #3 above. In my state and I believe Illinois too, people may think you are providing legal guidance and advice. It doesn't matter if you are paid or not. Discussions are fine, but filling out a legal form for the plaintiff may be looked down on by people 'in the trade' who perform these licensed functions for a living.

Disclaimer: This post is for entertainment and is not to be construed as legal advice.

Account Closed · Answer

Anytime. Good luck, stay in touch.

Account Closed · Answer

Good point, I just tell them to bear down hard because it is going through 6 copies and point to where they need to put the rent, late charges and other required information.

Old folks who have not done this before get confused, they appreciate my help. (I am 74, so I am not sure I should refer to part time landlords as "old folks")

Account Closed · Answer

Very.

Everything boils down to information and motivation without information you don't know what the sellers motivations are. When an owner wants to sell their property using an agent or themselves in my opinion they are motivated, it is just the degree of motivation that we're trying to determine.

Once we determine that motivation, whether it be financial medical or job loss, it is up to us to construct a creative contract of sale to control that property and eventually, hopefully in the very short term,  settle, or assign.

For your portfolio or short-term cash needs, the written offer is very important.

Sherry Potwora · Answer

Thanks for the great ideas about expired listings, Charles Parrish!

James Bitakis · Answer

Wow, great ideas Charles. Those are angles I've never thought of when going to the courthouse.  As far as expired listings go, how successful have you been getting them to drop the price to make it a good investment?

What do I specifically look for at the Courthouse?

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