Learn what pre-foreclosure investors look for and find in each investment deal.
{Hello fellow real estate investors and entrepreneurs~Hi there real estate investors and entrepreneurs~Well hello 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 investment property at a substantial discount.
{You don’t need to have all seven factors together in one place, but when you find one of these signals, the others are usually right around the corner (no pun intended)~You don't need to have all seven in place, but when you find one, the others are usually close by~You don't need to have all seven buy signals in place, but usually when you find one, the others are sure to follow~You don't need to have all seven buy signals in place in order to move forward with the investment, but it sure does help}.
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 into pre-foreclosure cannot climb back out and usually end up losing the property~Most homeowners who fall behind on the mortgage payment cannot catch up and usually lose the property at foreclosure auction~Many homeowners who fall into foreclosure cannot bring their account current and end up losing the property at sale}.
{When you don’t have money to pay the mortgage, you don’t have money to maintain the house or the grounds either~When homeowners can't afford to pay the mortgage, they cannot afford the others bills either~When homeowners can't affored to pay the mortgage, they cannot afford to maintain the house or the grounds either~When a homeowner cannot make the mortgage payments, the property and grounds usually take on signs of neglect}.
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~Overgrown grass is a sign of neglect~Overgrown grass can sometimes be telling you that the house is in some kind of trouble}.
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~When a homeowner in this situation moves out, the neighborhood kids like to get together and work on their target practice~When homeowners in this situation move out, local kids sometimes vandalize the property by busting out the windows~When a homeowner in this situation moves out, the neigbhorhood kids can get together and take out the windows if you know what I mean}. {This usually involves selecting the proper target~This involves honing in on the best possible target~This usually involves picking out the right target~This usually involves knowing which target to select}.
Buy Signal #4: Rotten And Exposed Wood
A house that has extensive rotten wood on the exterior has probably been neglected for many years. {You would be amazed at what people will tolerate when it comes to sub-standard living conditions~It's shocking sometimes what people will put up with when it comes to sub-standard living conditions~I'm always amazed at what people are willing to tolerate when it comes to sub-standard living conditons}.
{I once met with a homeowner who had a 3 foot wide hole in his kitchen ceiling~I once met with a seller who had a huge hole in the kitchen ceiling~One time I met with a seller who had a gigantic hole in his kitchen ceiling~I once met with a homeowner who ended up having one of the biggest holes in his kitchen ceiling I had ever seen}. {The whole was so big that you could see clear up to the sky~The hole was gigantic - you could see straight up to the sky~The hole was huge - you could look up and see the blue sky above~The hole was really big, in fact, you could look up and clearly see the blue sky above}. {I met with this homeowner for several hours discussing his situation with the house~I met with the seller for an extended period of time discussing the situation with the house~I met with the seller for several hours talking to him about his options with the house~I met with this homeowner for several hours discussing his options}.
{Not once did he mention the huge hole in the roof – not once~Not once did the seller acknowledge the huge hole in the roof~Not one time did the homeowner say anything about the huge hole in the roof~Not once did the seller mention the huge hole in the roof - not once}. {Very strange~This was a very strange exchange~This was a very strange experience~Very strange indeed}.
Buy Signal #5: No Garden Hose
I have found this one item in the list to be more telling than any of the others.
{For some reason, whether or not the house had a garden hose connected to the outside faucet told me if it was occupied or vacant~For some strange reason, I could tell if a house is vacant or not, by looking for the green garden hose~Without exception, the green garden hose told me if the targeted house was vacant or occupied}.
{If the hose was still connected, the house was usually occupied~If the green garden hose was still connected, the house was usually occupied~If the green garden hose was still attached to the house, it was almost always still occupied}. {If the hose was missing, 9 times out of 10, the house ended up being vacant~If the garden hose was gone, 9 times out of 10, that house was vacant~If the green garden hose was missing, in virtually every case, the house ended up being vacant~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 in an instant that the seller has moved on if the furniture has been removed~When you see that the furniture is missing, you'll know the seller has moved on to another place~You'll know that the seller has moved on when you see the furniture is missing~You'll know instantly that the seller has moved on when you see all the empty rooms}.
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 there was a problem with the house and the seller couldn’t fix it, the neighbors will know about it~If the seller could fix the problem with the house, you could bet the neighbors knew all about it~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
