What are some strategies you pros use to find out more info on a house?

Question

I've been doing some searching, seeking out homes that are recent evictions but aren't quite on the market. How do you go about finding more information to potentially put in an offer?

Rich Weese · Answer

Bill – WOW! I don't want you to scare the poor guy to death! As you know, I've purchased probably as many homes as anybody here on bigger pockets and I have to admit I've never done any of the items you mentioned. I think in the over 1000 single-family residences I bought, I only had one that came up with any serious concern of all of the items that you mentioned.

Wouldn't you agree, that Ned's list was a very good and thorough suggestion? I'm not trying to rock the boat here, as you are extremely helpful with all of your posts every day, but I didn't want an inexperienced person to thinking needed to do all of these things. Have a great Sunday. Rich

Ned Carey · Answer

I can't tell you exactly what websites to use because I don't know your market. However most areas have online databases of useful information. In Maryland I use various sites to find all of the info below.

SDAT - current owner and misc tax information
SDAT - Information about corporations or LLCs if they own a property
Land records showing recorded liens and mortgages
Legal case search to see if owner is subject to any lawsuits including foreclosure
Bankruptcy search
Skip trace - sites to find the owners number and or location.

Different areas will have some or all of these and they will have different names so you will have to do a little searching to find what works in your market.

Good luck - Ned

Account Closed · Answer

Contact the owner.  The offer comes later.  Find and and contact the owner via letter or phone.  See if it's someone who wants to sell and what the story is.  Most will say no.  Some will be angry that you asked.  Some may change their mind.  A few will say yes. Then you figure out values and repair costs and other costs.....and then an offer.

Rich Weese · Answer

Hi Bill – I agree with most of what you had posted here. I just didn't want to scare someone to death. As you know, I don't deal with 75-year-old houses, so I don't have the problem.

I do have a home currently with an accepted offer by Fannie Mae on a home built in 1992. There is a pool and a spot in the backyard with no water and a mold remediation letter in the file. I have spoken with the neighbors to find out the history of the home and how long the pool has been empty. This would definitely be a fixer upper if I allow my offer to continue. Due diligence is very important in the real estate business. Rich

Bill Gulley · Answer

LOL! I have bought hosues off an appraisal sight unseen and didn't do any of that, but OTH, you (Rich) and I have been around awhile and probably can't get into a problem we can't fix.

Use some judgement there, if it's a 5 year old house in a nice area, speaking to a neighbor will probably do. If it's a 75 year old bungalow or appartment building in the center city, yes, I'd make those calls.

I don't think there is such as thing as too much due diligence expecially for newbies. If they can see they would or could have a concern about, any issues,  they need to know where to go to get the information.

Seeing that there were past issues, say a health code violation for not cutting the grass is no concern, seeing that it was a crakhouse 5 years ago might be. New investors should probably do all they can to protect what, usually, limited funds they have.....didn't mean to scare anyone, just other steps to due diligence to be informed....

Bill Gulley · Answer

To add to Ned's list; Search the address with the fire department to see if there were ever any fire calls, police dept. for police activity there, health department for violations, building regs for violations with their office. Hopefully you come up with a clean house.

Gary E. London · Answer

You can find a lot of great research information at www.homeinfomax.com

Karen Margrave · Answer

Many City and County websites have GIS Interactive Maps, that allow you to locate a parcel by the map, street address, etc. You can then click on the parcel, and then the report, which shows the parcel number, and sometimes the owners name. In northern California it showed names, southern California they don't (I think it's because there are so many celebrities and extremely wealthy individuals it might compromise them) You can also get owners records from most title companies (ask for the title plant). If all else fails, send a letter to the house address and it should be forwarded. Also, talk to neighbors. Or... Google the address.

Brian P. · Answer

you said recent evictions, how do you know that?

If that is the case finding the owner is no problem it is on the eviction records at the courthouse.

Stay out of war zones, drive by the property, is it even worth chasing, check to see if owner owns other properties, if they do they are not likely to sell because this is upsetting but not upsetting enough to sell at a highly discounted price. It generally just results in vowing to check new tenants better.

The key is to hit them quickly because once the owner gets a new tenant  and things go back to normal the motivation disappears quickly. They still may sell, but not as cheap.

Tony A. · Answer

Hello Philip.  After finding out who actually owns the house, I like to get a profile of the owner's financial situation with the property before contacting them.  I look up property taxes online [available in my market] to determine whether they owe back taxes and, if so, how much --owed back taxes can be a major motivator to sell.  I'll also look for any trust deeds in the public records [also online in my market] to determine whether the owner owes (or likely still owes) money to a lender.  If it looks like debt exceeds value, then you know you're probably not looking at a good wholesale deal.  I'll also take a look at the last deed transfer - if it's very recent (within the last year or so), and there's no financial issues, I'll think twice about pursuing the property, since the likelihood of the owner wanting to bail on a recent investment is slim.  I hope this helps.

What are some strategies you pros use to find out more info on a house?

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