Thread: new investor here

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

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

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"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

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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

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...

"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.

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.

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.