Seven Signs That Pre-Foreclosure Investors Look For Every Time
Hi 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 in place, but when you find one, the others are usually close by.
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.
When you don’t have money to pay the mortgage, you don’t have money to maintain the house or the grounds 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.
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.
Buy Signal #3: Windows Are Busted Out
Busted out windows are usually found in vacant or abandoned properties.
When a homeowner in this situation moves out, the neighborhood kids like to get together and work on their target practice. 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. You would be amazed at what people will tolerate when it comes to sub-standard living conditions.
I once met with a seller who had a huge hole in the kitchen ceiling. The hole was gigantic – you could see straight up to the sky. I met with this homeowner for several hours discussing his options.
Not once did he mention the huge hole in the roof – not once. 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.
For some strange reason, I could tell if a house is vacant or not, by looking for the green garden hose.
If the hose was still connected, the house was usually occupied. If the garden hose was gone, 9 times out of 10, that house was 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