Kim and I have been buying foreclosures since 1995. Over time, we’ve built a unique system that’s very effective. It has allowed us to buy tons of properties pre-foreclosure, at the auction and from banks after the auction. Today, I’ll explain how we work the pre-foreclosure market. Next week, we’ll discuss how to buy at the foreclosure auction.
When it comes to foreclosures, our best deals come from buying pre-foreclosure! At the foreclosure auction, there are always investors willing to work on much thinner margins than which we’re comfortable.
On the other hand, when buying pre-foreclosure – that is, before the auction – there’s very little competition. Why? If a homeowner is facing foreclosure, because of unfounded fear, few investors will knock on a homeowner’s door.
There’s another BIG benefit to buying pre-foreclosure. Since you’re buying from the owner, there are many more creative deal-structuring tools you can use to construct a win-win deal. If you buy at the foreclosure auction, there’s only one tool – a big dang hammer…CASH! There’s no creativity, beauty or…