• Seven “Buy Signals” That Make Property Deals Scream For Pre-Foreclosure Investors

    Date: 2010.01.27 | Category: Uncategorized | Tags: ,,,,

    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 pre-foreclosure property at a substantial discount.

    You don’t need to have all seven buy signals in place, but usually when you find one, the others are sure to follow.

    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.

    Overgrown grass is a sign of neglect.

    Buy Signal #3: Windows Are Busted Out

    Busted out windows are usually found in vacant or abandoned properties.

    When homeowners in this situation move out, local kids sometimes vandalize the property by busting out the windows. This usually involves picking out the right 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. I’m always amazed at what people are willing to tolerate when it comes to sub-standard living conditons.

    I once met with a seller who had a huge hole in the kitchen ceiling. The hole was huge – you could look up and see the blue sky above. I met with the seller for an extended period of time discussing the situation with the house.

    Not one time did the homeowner say anything about the huge hole in the roof. This was a very strange exchange.

    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 connected, the house was usually occupied. If the green garden hose was missing, in virtually every case, 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.

    When you see that the furniture is missing, you’ll know the seller has moved on to another place.

    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