RE Agent Says Forclosures Arn't Any Good. What Do You Say?
My realtor says that forclosures are no good because usually the people have overdrawn so much and have zero or negative equity and there is no room to make money. Then , he says, you would have to do a short sale (pre-forclosure) and something about the bank not wanting to. What am I missing? We've been trying to get a house for months and can't get our hands on one. Is he right about forclosures? Seems to me that alot of you have tons of success with them. What are you doing differently?
Thanks
Josh
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"if you are going to be in Real Estate you better know how to fix a broken toilet"[ Edited by jpchapboy on Date 10/14/2003 ]
Josh,
Find another realtor...
DAVEREI:
WELL SAID!
Josh
First off very few real estate agents even know what a shot sale is, let alone how to do one. It is a very slow process starting with the owner, then getting all the paperwork you need to deal with the lender from the owner. Getting the houses is the easy part.
Do some home work on the short sale process. Don't waste your time until you have learned the process. (school of hard knoks is a hard way to learn)
You are dealing with people in destress. Make sure you cover your fanny with legal disclosures that are for your specific area or state.
Get some education and go for it.
Best of luck.
Dave did say it best. I have purchased many homes from people who weere going through foreclosure. I have many money on all of them.. They all have left quite happy that they were able to get some money at closing.
I have also purchased homes that were REO's. You can make money there too.
Get a new realtor.
jpchapboy,
If you want to know how much your realtor knows about forclosures, ask him how many he has purchased. Sounds to me like he has never attended a sale!!
DaveREI said it best and I second that!!!!
Repoman
People live in a comfort zone. You will find very few people who live by the motto "Status quo is a slow death."
The realtor is in a comfort zone. Foreclosures may or may not be something that realtor should look into. But it has nothing to do with whether they're right for you to look into.
If you're a foundation repair expert, homes with foundation problems will be your comfort zone ... mold may not be. Perhaps, though, you'd be better off learning about homes with extensive termite problems. It's dependent on your particular circumstances.
As a lawyer, it's probably right for me to find homes in good condition that need extricating from various legal quandaries. Were I a contractor, my priorities would be different.
In either case, I would be myopic to deals that wouldn't work for me but could be perfectly good to others. It's an open question whether my cost in getting educated on those deals and in finding others to help me with them would be worth straying out of my comfort zone.
I hate to malign stupid Realtors. Most are just going to peddle what's on the shelf (MLS). There are short sales, and short sale candidates on the MLS but it takes an IQ of 60+ to know how to transact with the listing agent and lender. There are Government Repos and Conventional Repos also available.
Having now vented my rage, I would point out that there are some attractive deals available on the MLS that are not in foreclosure.
I think DaveREI (he has a way with words) said it best.
There are realtors out there who deal mainly with investors. Find one of them. What state are you in?
The biggest reason for a realtor to say that foreclosures are no good because there is not much in it for him. Real estate agents, bless their hearts, don't mean to be evil, closed minded and greedy. It is a part of their culture and training. #@&% them!
I get more leads thruogh my Loss Mitigation business than I can handle. I just don't have the cash to handle all the "pre-foreclosure" business that comes my way.
Bottom line, stay away from re agents unless you have a buddy that will do the comps for you.
New Realtor is definately in order.
I did get a little tidbit on realtors from one whom is a Private investor and a broker, some realtors want the big property listings the money makers. Many will not do lots of low offers on properties becuase it will supposedly hurt their reputations with thier coworkers and brokers to do so. This will put them on the lower end of the food chain so to speak and never allow them to break the stigma of being the king or queen of low ball offers and keep them from the big time.
You will have to find a realtor that is either not locked into this mind set and are their own man or woman so to speak and/or a hungry one
There are some really great articles on working with realtors on this site read those and short sales/foreclosures and just go do the work. Realtor or not you can make things work but having a good one or a trainable one is a big plus!
Good luck!
I am a re agent and an investor and have made other buyers and myself a lot of money and equity on forclosures. Your agent just has no knowledge about the subject and doesnt want to lose your business so took the high road. There are some good agents for investors and helping people get the best deals.
Thanks every body. I am in Utah SLC where it seems nigh impossible to make money unless you do real estate. Highest bankruptcy in the nation. Lots of forclosures. I agree with getting a new realtor unfortunately I am partnered with a guy who is putting up the money and our realtor is his buddy. Tough situation. Any body have some good recomendations for where to learn about short sales? Thanks again for all your input.
Josh
This site is an excellent place to learn about short sales. People here are more than willing to answer questions you might have.
I would have a "heart to heart" with my buddy and tell him his buddy is costing him and you both money. If your buddy doesn't agree I would find a new buddy to invest with.
TELL YOUR REALTOR TO SMARTEN UP I KNOW MORE PEOPLE WHO MADE MONEY IN LAST FEW YEARS DOING FORECLOSURES THEN PEOPLE IN ANY OTHER BUSINESS
Realtors know very little about property investing. In addition they do not like us because of fact most times we dont use theyre services. One more thing the HUD director that is now in charge seems to be aligned with them. The new rule for FHA loans is this if the investor has owned the house for less than one year. You cant go 5% over the original price on a sale. This is due to the high foreclouser rate. Why they use length of title to appraise a house ill never know. So this says this to me hes aligned with realtors and they are trying to squirm out of the high foreclouser rate.