Hi there real estate investors and entrepreneurs.
I wanted to provide you with a checklist of “buy signals” that experienced pre-foreclosure investors. look for and find when evaluating an investment property. These are sure signs that you’re on your way to buying your next income property at a substantial discount.
You don’t need to have all seven in place, but when you find one, the others are usually close by.
Buy Signal #1: Homeowner Is Behind On The Mortgage Payment
This is an obvious one, but I thought it needed to be included in the list. Most homeowners who fall behind on the mortgage payment cannot catch up and usually lose the property at foreclosure auction.
When homeowners can’t afford to pay the mortgage, they cannot afford the others bills either.
Buy Signal #2: Grass Is Overgrown
After many years of running the streets as a pre-foreclosure investor, I learned to pick out (in an instant) the house in foreclosure as soon as I turned onto the street.
High, overgrown grass is a sure sign that the house is in trouble and the owners (if you can find them) will have a compelling reason to sell.
Buy Signal #3: Windows Are Busted Out
Busted out windows are usually found in vacant or abandoned properties.
When the owner moves out, sometimes the neighborhood kids like to get together and pull out their personal rock collections and proceed to work on their throwing motions. This usually involves selecting the proper target.
Buy Signal #4: Rotten And Exposed Wood
A house that has extensive rotten wood on the exterior has probably been neglected for many years. It’s shocking sometimes what people will put up with when it comes to sub-standard living conditions.
One time I met with a seller who had a gigantic hole in his kitchen ceiling. The whole was so big that you could see clear up to the sky. I met with this homeowner for several hours discussing his options.
Not once did the seller mention the huge hole in the roof – not once. This was a very strange experience.
Buy Signal #5: No Garden Hose
I have found this one item in the list to be more telling than any of the others.
Without exception, the green garden hose told me if the targeted house was vacant or occupied.
If the green garden hose was still attached to the house, it was almost always still occupied. When the garden hose was not connected or missing, 9 times out 10, the house ended up being vacant.
Buy Signal #6: No Furniture
Usually when you suspect that a house is vacant, you peer into the nearest window to confirm your gut instinct.
You’ll know that the seller has moved on when you see the furniture is missing.
Buy Signal #7: Neighbors Haven’t Seen Them
Usually there will be a neighbor or two that can tell you something about the seller.
If the homeowner could not fix the problem with the mortgage, the neighbors usually knew all about it. They are sometimes a very good source of information
Tags: buy investment property, income property, pre-foreclosure, pre-foreclosure investing, property investors