Humbly Entering, Hoping For Help
Yes, thats a whole lot of "H's", but so be it...
Anyway, I am not embarrassed to admit that I am a beginner in the seemingly profitable (and cut-throat) industry of foreclosures.
Although I have read a bit on the subject, and am adequately aware of many of the surrounding issues, I also have realized that simply wont cut it in this complicated field.
Where do I begin? I have already gotten pre-foreclosure lists, but understand that if I am reading it, then dozens of others also have read it and likely contacted homeowners. Do I go to the courthouse? I have tried that once, and got a very snide and condescending "look for the info in the paper."
One of the more serious questions I have is regarding Liens, to which I have noticed some properties with a lien of ---for example--- almost 400K, only 50% equity on the house, and another lien or two for around 20K. Surprising when I see that the house is only valued between 300-375K. :-o What does one do in a situation like this? Negotiate to buyout the liens at a percentage?
Well, this is getting long, so I will continue when others aare willing to reply...
..thank you all in advance, and I hope to be discussing/learning quite shortly.
I'd suggest that you write a business plan.... the very act of articulating your objectives, qualifications, resources, and desired exit strategy will give you an outline on what you'll have to do.
Absolutely essential is to learn about your chosen field.. or, be able to hire and manage a knowledgable staff to realize your objectives.
[addsig]
If you are working a "hot" foreclosure market (and my guess is that Miami is one) I'd suggest finding another place to start in the real estate business. Sit down, make up a list of your assets and liablities (and by this I mean more than the financial ones). Think about what things you have enjoyed in your life and which you have hated. Try to come up with a simple one or two sentence statement of your goal as a real estate investor. Then you'll be more ready to start thinking about what approach to the business you want to take.
What kind of person succeeds in this business?
The kind with a vision for the future and an entrepreneurial spirit. One who believes (s)he has little to lose and never, ever, ever gives up. Someone with attention to detail, who can think logically, and who is willing to take a (calculated...educated) risk.
How much time should I devote per week? (as I have a job already)
How much do you love your job? It is common for part-timers to spend 10 to 20 hours per week. If you hate your job enough, you'll do what it takes to eventually replace that job with income from real estate. But if you love your job too much, you'll keep relying on it for your security and will find excuse after excuse for not spending the time you need on real estate pursuits.
How much time would it take me to get a first deal working for example two days a week?
Too many factors are involved to give an answer to this question. If the numbers on the deal work and the seller is motivated, not long. The trick is finding that magic combination
What are the clients like?
Diverse. However, most share some common traits. Few are real deadbeats...most are in a huge financial jam (sometimes of their own unintentional making). Many are in denial and many are emotional wrecks.
Also if you don't mind What is the market like in Northern CA?
Dynamic...but mostly very hot right now. Yountville is a beautiful area. Talk with a local real estate agent to find out where the hot spots are and typical days on market (DOM) for new listings to sell.
Thanks for the reply
I neglected to add that my buddy wants to
specialize on non-equity deals in the San Francisco Bay Area.
Does that make a difference in the answer?
Niceguy1
[ Edited by Niceguy1 on Date 07/30/2004 ]
No...not much difference. But you are greatly increasing your risk factor. I'm too new myself and don't have the kind of risk tolerance for no/low-equity deals.
Anyone knows about Southern CA (LA, Orange, Riverside) market, where are hot spots?
Thx