Besides The Auctions?
Hey Everyone.. Now I have the auction procedures down a bit..But I would like to know how we can get these properties besides through auction? In other words instead of me waiting till next year for the auction to come around how can I make these purchases? I would appreciate it if someone can give me a hand. Does this depend on the state your dealing with? Thanks in advance!!!!
tekenya--(VA)-------------------------
Hey, that's the state where I was born.
Until a tax deed is issued, the property owner can sell the property. Approach the owners. If the owner is deceased, look for a probate file and contact the personal representative of the estate or the heirs. If there is no probate, attempt to locate heirs by talking to neighbors of the property or the owner's mailing address. Or calling people with the same last name, if it is not too common.
If the owner is deceased and you can't locate heirs, see if there is an obligation against the property that you can buy for a discount and then foreclose on it--judgment, loan, lien, etc.
Good Investing*************Ron Starr************
Hi T,
You can actually get a list of properties from http://www.realtytrac.com that are in NOD or pre-foreclosure status. If you work with the homeowner, you can pick the property up and rent it back to them. There are several little tricks to making this work for you... You will need to first take a look at the title report to see what they owe... I get these free online from my local title company...
After I see what the seller owes and look at what the value is... then I calculate what the equity is in the property... Once I establish how much equity we have to work with... then we talk numbers...
Something like... gee mr so and so... you owe this much on your mortgage... how much cash were you looking to get so that you can move and relocate... This is where the negotiation process kicks into gear 2... The you work the Short Sale with negotiations jamming on gear 3...
This is simple... it is not going to be easy for the first few... You have to have thick skin to do this side of the business...
P.S. Hit your local title company to save money on legal fees... Ask for a Sales Rep... or Title Rep... this person will help you with canned docs...
Quote:
On 2004-11-02 14:59, tekenya wrote:
Hey Everyone.. Now I have the auction procedures down a bit..But I would like to know how we can get these properties besides through auction? In other words instead of me waiting till next year for the auction to come around how can I make these purchases? I would appreciate it if someone can give me a hand. Does this depend on the state your dealing with? Thanks in advance!!!!
[ Edited by JohnLocke on Date 11/07/2004 ]
Jane Meadows--(CA)---------------
I'm not sure that you have given good advice here when you say: "If you work with the homeowner, you can pick the property up and rent it back to them."
While this may be possible, I think people should only do this if they have consulted with a sharp local real estate attorney. Here in CA, doing what you advocate could lead to very bad outcomes for the investor who did it.
The main problem is that the former owner may later claim that s/he was promised a chance to buy the property back. A judge might find for the former homeowner in a lawsuit--afterall the foreclosure investor is NOT the sympathetic one in the law suit.
Good Investing and Good Posting*************Ron Starr*************
Thanks alot everyone!!!! Now let me ask does this go for tax liens also? Is there a way for me to pick up these tax liens after initial auction and special sales?
This how the procedure works here in AL. I haven't tried it yet but will starting in January.
In Alabama they have the lists of tax liens and properties that were not bid on during the annual tax sale in May and there are a lot of them, especially in Birmingham, AL. They post the tax sale lists online so all you have to do is go to the Jefferson county website and input the parcel id number of the property that you are interested in buying or I am pretty sure you could go to the local dept of revenue office and look up the property there.
Once you have researched the property and its worth, liens and such, you make a bid to the county (provided online) and mail the form and money to them. I notice that that the way they calculate the costs of land or deeds of property to sell to others (investors included) is they add up the back taxes that have not been paid on the property and probably a little more. That is just the short version of how it is done here. Hope this helps.