HOW Do You Buy Foreclosure Properties?
On this video we’re going to be talking about how to find and how to buy foreclosed property that’s going to be really important here in the coming future. Pay attention, check it out.
𝐉𝐨𝐢𝐧 𝐎𝐮𝐫 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐆𝐫𝐨𝐮𝐩
What is up everybody? Welcome back to my channel, I am Justin Colby. And on this channel, we talk about three things, real estate, entrepreneurship in business. And so hopefully this channel is the channel you subscribe to. So I’d highly suggest to hit the subscribe button. Also, if you’re liking my videos, smash the like button and make sure your notifications are on. So you know, when I drop all three videos a week today, guys is a very close subject to my own heart, as I personally was foreclosed on, I don’t know how many of you guys have been following me over the years, I have a podcast called the science of flipping that I’ve talked in depth about this tragedy that I went through. And I know millions and millions and millions of others have also gone through the foreclosure process. But I myself went through this. And so this is something that is close to my heart because I went through it now as a real estate investor. I personally have bought hundreds of pre foreclosures and or foreclosures down at the county foreclosure steps. And so let’s talk a little bit about this. But just so you guys know, I came from a broke, busted and disgusted scenario myself. 14 years later, I have flipped over 1800 properties. I’m doing it now in seven different states in 10 different cities. And I continue to run a very successful wholesaling and flipping business and I’m buying two to four rental properties each and every month. If that’s something that actually appeals to you, you’re trying to break into the real estate business, just go to my website, the science of flipping.com. There’s a ton of free resources. But most importantly, let me see if I can help you and actually coach you to get to the finish line, there’s a simple button says fill out the application, fill out an application, one of my advisors will get with you to see if I’m a good coach for you if you’re a good fit for my coaching. And we’ll go from there. So the science of flipping calm. Now let’s get in to the subject matter, as most people will say, well, isn’t there a foreclosure tsunami coming? And I would say, maybe we’re not exactly certain here. And if you’ve watched any of my previous videos, over the last coming weeks and months, I can tell you that the banks don’t know what to do, and the government doesn’t know what to do. And given that neither party knows what to do. We will see how this all shakes out. But I will tell you that the fundamentals of real estate and economics would tell you yes, there is going to be a flood of foreclosure properties. And so let’s talk about where to find them. Well, the county recorders office is the first place. If you have no other resources, you can find them down at the county recorders office. We here in Phoenix and I know in many other states have foreclosure auctions each and every day here in Phoenix. I know in multiple other states that they will happen maybe one day a month, maybe one day a week, here in Phoenix, we have them every single day. Now here’s the shocker when I was buying from the foreclosure auction steps, I actually was you know, there was hundreds of homes going to auction every day hundreds. Now there’s like 810. Seven a day. So there’s relatively no foreclosures going on right now. That doesn’t mean this isn’t a video you should be paying attention to, because there will be those opportunities. Now some of the major opportunities going to be in the front end, which would be pre foreclosures, those are people that have a loan, a bank loan, and they’ve started missing some of these payments, and they will get a notice of default. And then essentially the bank will go through their process of foreclosing on them Now, we all know the foreclosure moratorium has been in place for quite some time now. But it doesn’t mean these people aren’t in pain, meaning if they aren’t paying their mortgage, that usually means they haven’t been able to keep their job, they don’t have any more income. And so they’re in a position that they need to make a decision because the looming fact of foreclosure is on the horizon. So for you finding a list of pre foreclosed property and the tool I use is prop stream. So if you just go to T SOF data.com tsf.com prop stream will give you seven days for free so that you can start Trying out prop stream. If you use promo code, t s o f, they’ll actually also give you seven days and allow you to download a list of 10,000 pre foreclosures in your market, again, TSF data.com, promo code TSF, you will get a download of 10,000 pre foreclosures, and you will be able to use it for free for seven days. So that’s the provider I use when pulling lists. So again, I would go into the market that I want to be in, I would pull the list of pre foreclosures, I would then take that now to actually upload that up to batch skip tracing. So if you go to TSF, batch.com, TSL, batch COMM And then I would skip trace them, I would get everyone’s phone number. And now it’s our calling. Now here’s a little bit of a secret. And I’ve done a lot of trainings about this, and I go over this in depth in my coaching, but you don’t want to call these people and say, Hey, Mrs. seller, looks like you’re broke and you’re about to go to foreclosure Do you want to sell, that is not what you want to be doing here, you simply want to reach out to these individuals, be a value to them and say, Hey, I’m looking to buy a home in the area, I’m a local investor, do you or anyone you know, are thinking about selling or want to sell something as simple as that they don’t need you to poke them in a soft spot with a red hot iron, because you know, they’re going through the pre foreclosure process. So again, just reaching out to them, letting them know you’re looking to buy will start the conversation of whether they want to go down the road or not. Alright, so just because someone’s in pre foreclosure doesn’t mean that they’re in a big loss yet, per se. Now here’s the reality over the last 234 or five years, actually a decade, our real estate market has been appreciating. And so just because someone’s in a position right now that they’re going through either pre foreclosure or they’re about to hit foreclosure doesn’t mean they’re going to lose a bunch of money. As a matter of fact, you might be in a position to buy at a point because of the amount of equity that they have, that you can actually get them money out of the transaction. Now, that wasn’t always the case, there used to be these scenarios, and essentially, these people are gonna end up walking away, they’re gonna lose all the money that they put into the home now because of appreciation, like a home, essentially could have a loan for the home for $100,000. But now the home might be worth 150. Well, now why would someone not just list the property on the MLS? Well, they could that could be another way that you find foreclosures or pre foreclosures is on the MLS. But if you do what I just suggested, which was pull list, get on the phone with them, go use batch, t SOS batch.com will bring you to batch skip tracing, call them. Now they may just say, Hey, I’m gonna list the property. And that’s fine, too. That’s another way for you to find it. But ultimately, what you might be able to do is say, hey, if you work with me, I’ll make this thing quick, you won’t be in a position to lose your home to foreclosure. And you actually will be able to like, just exit this, put some cash in your pocket and move on, rather than taking the hit of a foreclosed property being in your credit up which likely already was banged up, but you now actually can give them a check in their pocket within 10 1415 2030 days, that that won’t be the same scenario on the MLS. So with that in mind, you actually now can be a huge value to you or to them, and then they can move on with their lives. As I just mentioned, one of the other ways to find these properties, the MLS, you have the courthouse steps, you have the list provider, prop stream, and that’s really the way that I would go on and try to find these individuals. Now, will there be a flood of Oreos, which would be when the bank already foreclosed and took the home back in their name? The answer is maybe. So I’m not going to use a lot of time to talk about bank owned homes arios here because I think the real goal here is finding people in pre foreclosure, they may not be need yet, but if you do your job as a real estate investor and continue to talk to them, you will find that at some point, they will have to either catch up all of those back payments, which most people can’t do, or they’re going to actually say hey, I am interested in selling and start working with you. Now why is this a valued everybody? Well, for real estate investors, this is where you can find some of your best flips, some of your best wholesale deals and honestly some of your best rental properties. Usually you can get in at a great price point the homes in great condition because they lived in it and it could be a great rental for your portfolio. It’s actually something we are focusing on as a moment in time. So hopefully you guys have really enjoyed this if you do please smash that like button, make sure you’re subscribed to my channel and turn on your notifications. If you are interested at all working directly with me on your real estate investing business, head over to the science of flipping.com fill out the quick, simple free form and well one of my advisors will talk to you and see if we’re right fit but I’m happy to have a conversation and see if I can get you to the next level. And I’ll see you on the next video. Peace