new investor here

[i_invest]

hey all im new to the real estate investing. im located in rochester ny and want to start buying preforclosures and foreclosures, but my question is where do i star. i would like to know if someone in my area would like to be a mentor to me and help me get me on going in the right path. i have been really interested in the real estate feild and have bought books but am stuck and need a little guidance thanks you can either reply here send me a pm or email either way i would like all the input i can get
nick

[vegas-kid]

I dont know what the Market is like in NY but i know if your looking for long term investments Vegas is an ideal place right now.

It's almost sad how many bank owned homes are popping up due to first time home buyers getting over their heads with 3 year intrest only arms during the boom. Those ballons have started to pop and some needs to be there to pick up the pieces.

Vegas-kid

[CSmith]

There’s a whole industry that operates on making Real Estate Investing appear simultaneously easier (“make a million w/ no down and no risk!”) and harder (“…but you’ll never figure it out unless you by my $$$ course!”) than it really is.

There are a variety of websites and services that charge for foreclosure resources and advice, but a lot of this is re-cycled information collected from public sources. Check out the Homes & Communities page of the U.S. Department of Housing and Urban Development ( hud.gov/buying/localbuying.cfm ) for some good leads.

But the most important step is doing the numbers before you buy. Figure out how much money you will be putting into the project (mortgage, expenses, insurance, fees, etc) and how much the project will be putting into your pocket (rent). Is it a good deal?

You can do this in a spreadsheet, or using the tools offered by a company like the one where I work ( equityscout.com ) but the important thing is: do it!

Good luck!

Christopher Smith
Managing Director
EquityScout.com
csmith@equityscout.com

By the way (Las Vegas: heavily overvalued w/ flattening prices. That’s why there are a lot of foreclosures there. Yeah you could get one, then what…? I don’t have a crystal ball, but most economic indicators tell us that the party is probably over for most of the overheated markets.)

[vegas-kid]

"By the way (Las Vegas: heavily overvalued w/ flattening prices. That’s why there are a lot of foreclosures there. Yeah you could get one, then what…? I don’t have a crystal ball, but most economic indicators tell us that the party is probably over for most of the overheated markets.)"

You are a year behind the time, the flattening/ correction already took place and the market is starting to climb out of it now.

Can you turn and flip them the next day, probably not. But with 6000 people moving here a month the future for real estate in las vegas is like the weather, bright and sunny.

There was a correction for the over apprecation in 2004 and 2005; however, inventory is starting to drop to normal levels and new home builders have slowed. This means the correction is about to subside and its a great time to get into some under valued property for those long term investments.

Vegas-kid

[CSmith]

I’m not an expert on Las Vegas, but I can look at the numbers. In 2002 the median price for a house Las Vegas was $149.500. By the second quarter of this year it had risen to $286,000 – a 91% jump in just four years. This time last year the median value was $260,000.

I’m not saying that investing in Las Vegas isn’t a good deal. Hey maybe it’s a great deal if you’re expecting the market to continue to skyrocket, but according to Global Insight/National City the Las Vegas market is currently 42% overvalued.

(But...there are some areas that have rocketed even faster - Naples FL is 101.5% overvalued!)

If the Las Vegas market does the same thing in the next four years as it did in the last four years then investors in Las Vegas will make a fortune, but someone who is jumping in now should at least be aware of what they’re getting into.

In the California Bay Area a fixer-upper goes for around $500,000, but you can only rent it out for $2,500 per month – maybe $3,000. That’s some serious negative cashflow. To make a decent rate of return out of this investment you’d be counting on continued double-digit property appreciation rates.

That’s great if you think that is what the market is going to do – but investors need to realize that when they buy properties in high priced markets they’ll need some big gains in value in order to do well.

Every buy-and-hold investor should be able to answer this question: at what rate would this property need to appreciate for me to earn an acceptable rate of return on the investment?

Christopher Smith
Managing Director
EquityScout.com
csmith@equityscout.com (csmith@equityscout.com)

[RE_Investor]

I invest in properties in Michigan. I have been able to consistently find properties with 40% or more equity due to the large number of foreclosures. I devote much of my time to searching for more properties, as well as the many leads we get each day from advertising. Many of these properties are purchased under $100k, the lowest I've purchased being $7,900. These properties cash flow well, the rental market is still strong. Many of these properties can also be sold for a quick profit.

I have found that you make your money when you buy! I am not interested in buying at a higher price hoping for a good appreciation rate, I find the properties that I can get with the equity already there.

I work with many new investors and out of state investors. We also offer property management. Let me know if you would like more information on investing in MI.

Justin Razmus
Real Estate Sales & Investments
Blue Rock Real Estate
(616) 450-4734
jrazmus@grar.com (jrazmus@grar.com)

[WesLayke]

Hello, I am somewhat new to the investing side of things as far as being an investor in real estate. I dont know if NY has it or not but in my state, they have a website called "Circuit Court Access". and on there you can search for preforeclosures and attemtp to contact them. I guess it depends how much time you have and how much you want to devote to possible dead end leads.. cuz you will find a lot of them .. and especially those going through divorce etc.. and those are even harder to deal with .. anyways.. if you cant find the site on line.. call your local gov agency and ask around for it... hope this helps...

[vegas-kid]

"I have found that you make your money when you buy! I am not interested in buying at a higher price hoping for a good appreciation rate, I find the properties that I can get with the equity already there."

Exactly, with all the bank owned props in Vegas right now there are plent of those properties available. The rental market is strong so you should at the least be able to get even cash flow and hold the property for 2 or 3 years at say an avetgae of 5% appreciation.

Math 200k home with 20k instant eguity on purchase plus no cash (renty covers nut) flow plus 5 % app on average = good money.

[Dennis Lines]

In most states the Notice of Default is a matter of public record. You can obtain it from the county recorder or from a title company. Notice of Trustee Sale(NOTS) is usually published in the local newpaper. But, with foreclosures you have to be careful, remember you cannot see the property prior to the actual purchase and close of escrow. So, you don't know what condition the interior is in. If you go to the auction at the court house do not let yourself get caught in the feeding frenzy. Set a price you are willling to pay and do not go over.
The government has reimplemented the 203K so, if you intended to live in the property for a couple of years, it is a good way to buy a fixer and have the money to repair it.

[RE_Investor]

If you are willing to do the footwork, your best bet (in my opinion) is to try to purchase the property from the owner. Even after the foreclosure they have a redemption period to purchase the property back or sell it. Many sellers are motivated at this point to walk away with the some money.

[Codythebest]

If you are willing to do the footwork, your best bet (in my opinion) is to try to purchase the property from the owner. Even after the foreclosure they have a redemption period to purchase the property back or sell it. Many sellers are motivated at this point to walk away with the some money.

I agree. Finding the motivated seller just before foreclosure is best.

[Denise Andreacchi]

As an agent here in Toronto, Canada. We always check with the banks. Ask the manager of your local bank they may help.
Regards

[REbuyersgroup]

Better than a forclosure. Brand new homes at foreclosure discounts.

I have a developer in trouble on the west coast of FL. North of Tampa.
We have 35 homes at 30%+ off appraisal value. 4 of them are the builder model homes he wants to keep and will lease back at 6% of the purchase price with option to buy back. About 10 of the homes will not be complete for another 2 months.

Great opportunity. We are looking for a single bulk deal on the entire package, or will split into blocks of at least 5 homes minimum.

Lets talk!

-Craig

[Denise Andreacchi]

Please send more information.
Regards

[timtarpley]

My advice is that foreclosures can be excellent investments, but they can also be just as expensive as privately owned properties - and often much more work.

[hollyshelly]

I would recommend trying to get Chris Harris from scbuyshouses.com
as your mentor.

Good luck in all of your business ventures!

[Shayna27]

You can find foreclosures usually in your local newspaper, usually the smaller, cheaper ones because they dont want to be spending a lot of money every week on the notices. It will tell you the date and time the auction will be at the courthouse. From my experience there will be a lot of people there that want to get their hands on them so the competition is high. You usually need to have a chashiers check available for the full amount. Sometimes it will be hard because as a new investor it may be a bit intimidadting, there will be people there with lots of money who are willing to outbid you. Sometimes you can get lucky though. Just dont get caught up in the auction any pay more for the house than you can make a profit on. This is how it works in california, most states are similar. Working in probate real estate is a lot easier as there is no competition. That is what i do. So if you ever get overwhelmed you can look at my website webuyhomesinprobate.com and it will give you a good idea on how it works. Good luck!!!