Foreclosure, Pre-Forclosure & Auction Advice for newbie

[Elaine Jordan]

Hello BP Members, I am a newbie in the central Florida area. I have yet to purchase my first property. I have spent the last several months educating myself on general real estate investing, flipping and buy & hold strategies. I am a member of the local REI club and have attended numerous meetings, seminars, etc. Here's my problem. I have looked at numerous bank owned properties with a realtor, plus several wholesaler properties thru the REI club. As soon as a REO property hits the MLS there are multiple offers on the property which drives up the price and makes the property too expensive to be a good investment for me. The wholesale properties have either been too expensive, or in an undesirable area (I don't want to be a slum lord), or in a location too far away.

So I am rethinking my focus area and thinking I need to learn more about short sales, foreclosures and perhaps auctions. Any recommendations as to the best books on this subject? Any other general advice for a newbie starting out in this area of investing. Any advice would be appreciated. Thanks in advance! 

[William Hochstedler]

@Elaine Jordan

First of all, foreclosure laws are state specific.  If you are looking in Florida, you should familiarize yourself with how foreclosures work there and the required steps in the pre-foreclosure process.  From there, you will be able to identify borrowers who are at risk of losing their homes.

Second, all bank owned properties are listed on the MLS. There is no way to back door this. If the REO market is too competitive, you should look at other ways of sourcing deals.

Keep in mind, a lot of buyers think they will get a good deal if they buy an REO. There are just as many listings on the MLS that are private sales that also have value. These are probably pretty competitive as well, but REO's are just one strategy of very many.

Good luck!