First Steps With Foreclosures

[Chris Heinmiller]

Evening BP!

I'd like to begin investing in foreclosure auctions and want to make sure I'm following all the right steps. Although I plan on having a title company run a title search and run and O&E report on any property I plan to bid on, I've still spent a lot of time understanding the typical foreclosure property due diligence- looking up the owner and property details on the PA site, looking up the various public records, liens, etc. and trying to understand the chain of title as much as possible.

I'm going to start out with first position mortgage foreclosures (probably not the best idea to jump into a second position or HOA foreclosure until I fully understand the process), but even with the first position foreclosures, some of these deals seem too good to be true. Even after a $40/50K (generous estimate) rehab you can cash out re-fi, pay yourself back and your investors back and still hit the 1% rule. What am I missing here?

Thanks,
Chris