BEGINNERS GUIDE TO FINDING BARGAIN PRICED FORECLOSURE PROPERTIES LEX LEVINRAD
So how do you find homeowners in foreclosure?
An often overlooked approach by beginners is
to utilize the classified ads both online and
offline. This approach is so simple that many
investors overlook it. I have even had
beginning investors tell me that it is ridiculous
to suggest that they can find bargain
properties out of the classified ads in their
local newspaper. However, if you think about
it a little, you will realize that if you were a
homeowner in foreclosure and you were
desperate to sell your home, you would
maybe consider placing a classified ad to see
if you could find a buyer for your house. This
is
exactly
what
many
homeowners
in
foreclosure do. You just need to be able to
recognize
the
classified
ads
that
say
“desperate seller”.
Search for words like “short sale”, “foreclosure”, “must sell”, “make offer”, “any offer considered”, “handyman
special”, “needs work”, “investor special” “desperate” “hurry” “must sell quick” etc. When I first started looking
at the classifieds, it took less than one month for me to find a bargain priced property. The first property I found
was not for one house but for three houses, all for sale by the same investor.
These houses were all located in Port St Lucie, Florida, and two of them were on the same street. The
investor had signed a contract to purchase all three houses and now wanted to “assign” (flip) the contract.
The houses were worth around $140,000 at the time, but had sustained some roof damage from one of the
hurricanes. We agreed to buy the houses for $95,000 a piece and after paying for the roof repair and some
basic cleanup, there was around $90,000 in equity. My partners still own those houses as rental properties
today. I tell all of my students that the classified ads are a gold mine of opportunity for all real estate investors.
You can also advertise your services to homeowners in foreclosure, by placing a classified ad in the
newspaper. Simply place an ad that says “We buy houses for cash” with your phone number. You will be
surprised when the phone starts ringing and you might get as many as 3-5 calls per day. You can also get
creative by targeting short sales specifically and saying something like “cash buyer looking to buy short sales”