All Forum Posts by: Duncan Forbes

Foreclosures usually have a lot of "hair" that goes with them. Like deferred maintenance, (bad roof, worn out water heater/AC Unit, warped flooring, water damage) etc, unpaid utilities, unpaid taxes, a second loan, unpaid HOA fees, a bad pool, bad reputation, sometimes squatters, sometimes they were drug houses, and so on. The problem is that you don't get an opportunity to do an inspection before you buy.

If you buy pre-sale from the owner, you have arrears to bring current, getting the owner to move after you have solved their problem and taken the pressure off, along with the previously listed concerns. You can wind up with title issues if you are not careful. Make sure you buy it low enough to make it worth the trouble. If you buy it too low, in some jurisdictions they will call it "equity skimming" which is illegal.

It can be very profitable, I've done many, but you really need to know what you are doing.

Thank you so much @Ken M.

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Westchester County, New York

Thank you all @Eric N. @Jay Hinrichs @Jonathan Greene @Nicholas L.

you have all helped me to really consider what type of challenge / path I want to get into, and all this information is excellent. I look at foreclosures.com

Out of the 3 stages I am definitely not ready for an auction

preclosure / short sales:

- I need to research how to take over a deed / title

- need to prepare how to do door knocking (I have a sales background and feel confident in dealing with an emotional conversation about someone’s home)

- there IS a window of like 4 weeks that I need to prepare for (have my finances in order) to then bid before it goes to auction?

- question: so NO real estate agent in this piece? Just an attorney?

For Actual Foreclosures:

- the negotiation will be harder to get a certain price?
- do I NEED real estate agent here in this phase then?

I know I am really condensing ALOT of things….but if you guys could help give 3 major pointers in the pre foreclosure and foreclosure part on this for someone who HAS real estate already (I have a condo in Mexico). Thank you so much @Eric N. @Jonathan Greene @Jay Hinrichs @Nicholas L.

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Westchester County, New York

Quote from @Ken M.:

It can be very profitable, I've done many, but you really need to know what you are doing.

Thank you so much! I don't plan on going on the actual auctions :/. What I am starting to lean towards is "Preforeclosures" and "Foreclosures," not the in between part

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Westchester County, New York

Quote from @Jonathan Greene:

Quote from @Jay Hinrichs:

Quote from @Jonathan Greene:

Quote from @Duncan Forbes:

Hey Everyone!

Hope all is well. My name is Duncan Forbes, I am starting my real estate journey in Westchester NY. I am not necessarily that new in the Real Estate industry because I have a place in Tulum Mexico, Condo as a short term rental.

I am planning on selling my Condo in Tulum, and looking to buy a fixer upper in westchester. About Westchester, NY:
- One of the most expensive places in the US, maybe the world
- Supply is VERY low
- Houses are no less than like $600k-$700k, I'm also getting outbid a lot.
- Now Foreclosures may be a good discount but at the same time I already know that there is aLOT more risk to this.

I already have a real estate agent, a mortgage broker, and am getting connections to contractors and so forth.

My few Questions are:

- Do I need a real estate agent in this process for foreclosures?

- Are there any resources / you tube vidoes/ or additional BP Videos I should be looking at

- If anyone is so kind, would anyone be able to give me a tutoring lesson for any hour, and if so, I am willing to throw a little money for their time. Thank you!

The best advice is don't.

1. You need all cash.

2. You can't see the property before if it's a true foreclosure so you are bidding blind.

3. All liens will not be confirmed prior to the sale.

4. Tenancies are subject to your removal so if there are squatters, good luck.

People usually look to foreclosures because they think they are cheaper, but foreclosure buying is not for amateurs. At every foreclosure auction you will find the same cast of characters who know the system. If you win, it's because they wanted you to win and they bid you up.

yup I used to be one of those characters.. there was a group of 8 of us that pooled money in a Cabal myself and one other were the main money guys the others put in smaller amounts and when we won one.. we would divy up interest prorata to the amount contributed.. this kept those guys from competing against us and for sure we bid up newbies .. really the only ones that would beat us were those that wanted to live in the house and would just go almost all the way to retail or above .. or someone bidding on a second thinking it was a first and no one is going to help you if you dont know what your doing.. this is a very caveat emptar bizz. And of course collusion to keep bidding amounts down was alive and well. its illegal as hell but done all the time.. there was a group in NC that got tagged by the FBI back in the middle 2000s and it cost them 800k fine dont think they went to jail though..

Now rural counties and can be a little different but like Jonathan says every market basically has their players..

I used to go to them all the time with my dad growing up and have gone to several as an adult. Everyone knows who the new person is and the goal is always to mess with them and test them and try to get them to spend their money on the junk so we can get the good ones.

Haha ok great! Thank you!

0 Votes

Westchester County, New York

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Duncan Forbes:

@Eric N. it looks like it’s good! See picture above!

All states have foreclosure sales. Banks regularly foreclose on properties and sell them on auctions. Restrictions are placed to prevent potential buyers from acquiring those properties before they are disposed of by banks. Check to see if you can market to people on active foreclosures and make an offer to buy their properties.

In every state the public is welcome to bid at sherrif sales or in Deed of Trust states Trustee auctions. The laws vary from state to state on the bidding process.. Like most Sherrif sales in the Eastern half of the country the sale has to be confirmed after the fact by a judge. In Trustee sales once you hand over your check its done your money is gone and not coming back unless there was a mistake in the sale or the owner filed a very late BK that was not caught before the sale was cried.

In a lot of the Sherrif sale states you simply need a deposit to bid and then you will have a normal or basically normal settlement once the judge approves the sale.. Ohio is like this. And in states that allow deposits and then settle up competition is higher as the price of entry is so low 5 to 20k deposits to bid.. now if you dont finalize you lose the money and can be fined as its illegal to bid and not close.

As for NY which is from what I see a very complicated state compared to Trustee sale states the thing to do and the ONLY thing to do.. Is not listen to anyone on BP or SM.. You spend 500.00 bucks or so for an hour or two from a very good attorney who specializes in foreclosures and have them walk you through it in person in their office.. This is by far the best money you will spend.. And the ONLY way to know the actual laws and rules of bidding at foreclosure sales.

For Pre foreclosures Eric is correct many states have enacted laws that must be followed to avoid large penalties when dealing with Owners Occupied homes that are in foreclosure. Now many folks dont know the laws and still blindly go at it.. And many on line U tubers will talk about it but none of them know all the laws.. or they gloss over them so that you will buy their course.

Wow! This is GREAT HELP! I really appreciate all the help!

1 Vote

Westchester County, New York

@Eric N. it looks like it’s good! See picture above!

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Westchester County, New York

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Westchester County, New York

Hey Everyone!

I already have a real estate agent, a mortgage broker, and am getting connections to contractors and so forth.

My few Questions are:

- Do I need a real estate agent in this process for foreclosures?

- Are there any resources / you tube vidoes/ or additional BP Videos I should be looking at

- If anyone is so kind, would anyone be able to give me a tutoring lesson for any hour, and if so, I am willing to throw a little money for their time. Thank you!

0 Votes

Westchester County, New York

Investment Info:

Condo other investment.

Purchase price: $118,000
Cash invested: $118,000

Tried to buy a place during the pandemic in NY but was getting outbid like crazy over 100k, so I was lucky enough to buy a condo in tulum mexico and do a short term rental.

1 bed, 1 bath, with community pol, 15 minutes away from the beach and 15 minutes away from the city.

What made you interested in investing in this type of deal?

It was a challenge

How did you find this deal and how did you negotiate it?

Through a client and a lot of research and connections through my Personal Training Industry

How did you finance this deal?

Cash

How did you add value to the deal?

N/a

What was the outcome?

Getting a lot in equity, barely anything in Cashflow.

Lessons learned? Challenges?

So many, please message me for details

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

All across sea's

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Hey Everyone! thank you SO MUCH :)

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Westchester County, New York

All Forum Posts by: Duncan Forbes

Duncan Forbes has started 6 posts and replied 21 times.

Post: Would like Suggestions on Foreclosure Buying

Post: Would like Suggestions on Foreclosure Buying

Post: Would like Suggestions on Foreclosure Buying

Post: Would like Suggestions on Foreclosure Buying

Post: Would like Suggestions on Foreclosure Buying

Post: Would like Suggestions on Foreclosure Buying

Post: Would like Suggestions on Foreclosure Buying

Post: Would like Suggestions on Foreclosure Buying

Post: Tulum Mexico Rental

Post: Question on International Real Estate Investing - Banking