All Forum Posts by: Marty Boardman

Each county sheriff's office has their own website with a link to the notice of foreclosure sale document (usually a PDF). Some counties are better at it than others but you should be able to get the info you need directly from these sites. I wouldn't trust a third party to obtain this information. I've found their data is old, missing, or inaccurate.

 I'm curious Corby when you say "hitting up pre-foreclosures"? What are investors in your market doing to target these homeowners?

I fix and flip in Arizona, Wisconsin, Illinois and Indiana. There are no licenses required. Permits required vary widely based on the scope of work and city the property is located.

For example, in West Allis, WI you must pull a permit to install a new bathroom vanity/toilet. But you can replace the windows, install a roof or repair the foundation without a permit. Seems silly to me. 

In Phoenix, AZ you can almost tear a house down to the studs without getting a permit (okay that may be a bit of an over exaggeration) but you can do a lot at the property without getting permission/approval.

Being an investor is a lot like being a fisherman, you should have as many lines in the water as possible. I look for deals in lots of places (from wholesalers, the MLS, text blasting campaigns to absentee owners, landlords) and I target pre-foreclosures and auction deals.

All that matters is margin so don't rule out any buying strategies. All that said, I'm acquiring about 90% of my deals now through pre-foreclosure and at auction so it's a great way to find below-market deals. And as Minna mentioned, the transactional process is no different than a traditional purchase.

However, there is a huge difference in the way you contact and negotiate with a homeowner in foreclosure. Homeowners in foreclosure are experiencing a great deal of stress (job loss, medical bills, divorce) so you must be empathetic and a good listener. They may also be angry, in denial, confused, apathetic or all four! So you've got to be patient as well and understand the process enough to explain their options and provide a win-win solution. You may not even need to get a loan if you are creative with the financing (subject to).

Good luck Chad!

I agree Marcus that there are few bank-owned foreclosures listed on the MLS. But there's still a lot of opportunity for pre-foreclosures and at auction. I bought four houses last month at auction in Wisconsin and 1 pre-foreclosure. I just checked with Milwaukee county and there are 66 foreclosures scheduled. Waukesha County has 12. If you're willing to travel a little further there are foreclosures in Racine, Washington, Kenosha and Dodge counties.

I think the days of finding deals on the MLS (and even from wholesalers) are nearly extinct. Yes, you'll find an occasional needle in the haystack, but for the most part if you're looking to scale off-market is the way to go. I focus on pre-foreclosures and auctions. For pre-foreclosures the marketing is pretty simple...door knocking and skip trace/text message/phone call from my VA. At auction I do my homework (title search, comps, visual inspection of the property). Good luck Sam!

I have a pretty good idea of what the homeowner owes on the house and the value before I knock on their door. Like I said, it's unlikely they'll answer and if they do they won't want to make a decision there on the spot. I leave a brief handwritten letter on their door to call me about a matter that requires their immediate attention. If they call me back I ask some basic questions about their situation and find out what they need (much like any salesperson would do). Then I schedule an appointment to see the house and calculate an offer.  

Hey Ashley, congrats on the move and jumping into the fix and flip business! I hear new investors ask these same questions often.

These are all legitimate concerns. However, the more important questions are:

1. How viable is my market for fix and flips?

2. What is my acquisition or buying strategy for fix and flips?

3. How will I determine the after repair value of my fix and flip projects?

4. How will I determine the rehab budget for my fix and flip projects?

5. How do I put a team together to help my find, rehab and sell my fix and flips?

It won't matter if you have an LLC and/or hard money, or how much you'll pay in taxes, if you can't find a house to fix and flip or the team needed to complete the rehab. I recommend you focus on learning your market and meeting as many people you can to help you launch your business first. Best of luck to you!

Over the past 2 1/2 years I've stopped focusing on "adding value" to my fix and flips. Instead, I look at what else is available on the market RIGHT NOW. With the lack of inventory buyers have few options and they're willing to overlook outdated kitchen cabinets, countertops and bathrooms. They're even willing to buy houses that have older windows, roofs and HVAC systems. Their mindset is "if I can just find a house I'll do the improvements myself later".

I mostly do the basics (carpet, paint, appliances, light staging) and price the property based on what else is available to buy. If there are few homes (or none) I'm very aggressive. This strategy has been more profitable than my past HGTV-style rehabs because it saves money on labor, materials and holding costs.

If you plan to do more projects like this in the future then I would highly recommend you do the project management. You'll learn a ton about finding contractors, scheduling the work, timelines and budgets. As you pointed out, most general contractors are booked out for months and they charge a fortune. Worst of all, you won't be their main priority. It's much better to take charge and hire sub-contractors and pay them directly. You'll build loyalty with them and have a sturdy contact list for any new properties you acquire.

Yes, this may cost you more time/money now, but consider it a "loss leader". Each new house you rehab after this one you'll get smarter and faster. Best of luck to you Mark!