Key takeaway: You can find a foreclosure home to renovate and live in it or you can flip it and make a profit.
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Whether you want to buy a house to live in (maybe after you do some renovation), or you want to renovate it and flip it, or you want to buy it, don't renovate it, and sell it within 30 days, buying a foreclosure is a really straight forward process.
What is a foreclosure? A foreclosure is a property that is owned by the bank because the home owner didn’t pay the mortgage for whatever reason. Usually it was a difficult circumstance that led to someone not being able to pay their mortgage and now their home is owned by the bank. Some of the bank-owned homes are in good condition and some of the homes need a lot of work. If the price is low enough, the purchase may be worth it. Be sure to have a contractor look at the property and give you a renovation quote before you finalize a purchase.
Note: I bought and sold a home in 2018 and that is how I learned about all of these strategies.
- Driving For Dollars
Driving For Dollars is an old strategy that many real estate investors use to find foreclosed homes. The strategy is simple, drive around and look for homes that are old and outdated. Look for homes where grass may not be cut and the exterior may need some updating. Write down the address of these homes and skip trace them to get the contact details of the owners. Then send the owners a letter or call them to see if they are interested in selling their home.
You can use reiskip.com to find out the owner’s contact information. Their services are good and their prices are affordable.
- Have A Real Estate Agent Send You MLS Listings
Working with a real estate agent is one of the easiest ways to find foreclosure properties because the properties are listed on the MLS database that only real estate agents have access to. Reach out to local real estate agents and have them send you a list of foreclosure properties. You can pay them for the list but someone of them may do it for free if there is a chance that they will get commission on a sale.
Once you get addresses to the properties, schedule a viewing and bring a contractor with you to evaluate the property and decide if you want to submit an offer. But working with a real estate agent is the most convenient strategy because you will get details on the property and the owner while working with someone who has expertise in the area.
- Use listsource.com
Listsource.com is a great resource to use to find foreclosures. On the website, you can choose filters that will allow you to search within a particular zip code and find the owner’s information of foreclosure homes within a particular area. The service is super convenient and easy to use. Once you submit an order you can get a list with foreclosure properties and the owner's information within a couple days. I have used this site and I recommend using their services.
Bonus:
- Use Yard Signs
With this strategy you will be marketing to people who can no longer make their monthly payments but they own their home. This strategy will not get your foreclosure properties but you will be able to negotiate good prices on homes with people who are just ready to get rid of their home.
Yard signs are great for showing everyday people that you are looking to buy a home for super cheap. Before you put out the yard signs, check out the local laws to make sure that you wont get fined. The key thing to remember with using yard signs to buy cheap houses is to make sure the owner owns the home so that you don’t incur any debt with your purchase and you can sell it and make a profit easily. I recommend using ditcheapasigns.com to purchase yards signs in bulk. Block off a Saturday and spend a couple hours putting out signs on public property (double check local laws to confirm the places you can put out signs). And wait for the calls to come in!
You can use these strategies to buy a home to settle in or to invest in one. Owning a home can be expensive but if you find a good foreclosure property and a bank that is willing to work with your lender you can easily own a home to live in. And of course these are good strategies to find a home that you can flip and make a profit.
Related Article:
5 Things You can Do Immediately To Boost Your Monthly Income - https://www.ashleyburks.com/single-post/5-reliable-things-you-can-do-immediately-to-boost-your-monthly-income
Thank you for reading!
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Ashley
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