Typical Foreclosure Viewing Instructions: Remove the Front Door Yourself!

Most experienced real estate investors and rehabbers have figured out a way to bypass having to be accompanied by a real estate agent every time they view a vacant home or bank owned property.  Some investors decide to get a real estate license for themselves while others have friends as real estate agents that get the lockbox combos for them. Others just sweet talk or persuade the listing brokers into offering up the combos – it’s possible.  These practices aren’t being recommended, so be careful not to get in trouble if viewing a vacant home without permission.  Many agents will actually instruct investors to bring a power drill with them to remove the front door to gain access to the house as long as the door is screwed shut upon leaving. … Read the rest

Short-Term Loans

A hard money lender makes short-term loans based on the value of an asset, in this case a property, with little regard to the borrower’s credit and/or finances.  Hard money lenders charge higher interest rates than standard banks due to the high risk nature of these loans.  Unlike traditional banks, hard money lenders can provide funds quickly, usually in 10-14 days, to purchase and rehab distressed properties.  These properties can be in need of significant repairs or be in various stages of foreclosure. This makes these loans popular with first time real estate investors that have little working capital or poor credit scores.  Look to use hard money loans to rehab foreclosures as your means to purchase and rehab your first couple properties.

Rehabber Loans

Hard money lenders will only provide loan terms of 4 – 6 months at… Read the rest

The MLS – Bank REO’s

Simple. These are properties that the bank now owns after the foreclosure process has run its course culminating in an unsuccessful attempt to auction off the property at a sheriffs sale.  Your local real estate agent can put together a list of properties in the price range you are looking for in about two minutes off the MLS.  Most of my purchases have been REO’s since they contain the least amount of headaches to obtain.

HUD Homes and Government Seized Repo Homes

Go to www.hud.gov or www.homesales.gov to find government owned properties in your target areas.  These are properties that Fannie Mae or Freddie Mac have insured and the homeowner defaulted on the mortgage.  I have purchased some heavily discounted HUD homes with almost no money down.  There is… Read the rest