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 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 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 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. This involves honing in on the best possible 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. It’s shocking sometimes what people will put up with when it comes to sub-standard living conditions.
I once met with a homeowner who had a 3 foot wide hole in his kitchen ceiling. The whole was so big that you could see clear up to the sky. I met with the seller for an extended period of time discussing the situation with the house.
Not once did the seller acknowledge the huge hole in the roof. Very strange.
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 attached to the house, it was almost always still occupied. 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 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 the seller could fix the problem with the house, you could bet the neighbors knew all about it. They are sometimes a very good source of information
Tags: buy investment property, income property, pre-foreclosure, pre-foreclosure investing, property investors
