Hi there real estate investors and entrepreneurs.
I wanted to provide you with a checklist of “buy signals” that experienced income property investors. look for and find when evaluating an investment property. These are sure signs that you’re on your way to buying your next pre-foreclosure property at a substantial discount.
You don’t need to have all seven factors together in one place, but when you find one of these signals, the others are usually right around the corner (no pun intended).
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 behind on the mortgage payment cannot catch up and usually lose the property at foreclosure auction.
When homeowners can’t afford to pay the mortgage, they cannot afford the others bills 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. It’s shocking sometimes what people will put up with when it comes to sub-standard living conditions.
I once met with a homeowner who had a 3 foot wide hole in his kitchen ceiling. The whole was so big that you could see clear up to the sky. I met with this homeowner for several hours discussing his options.
Not one time did the homeowner say anything about the huge hole in the roof. Very strange indeed.
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 reason, whether or not the house had a garden hose connected to the outside faucet told me if it was occupied or vacant.
If the green garden 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.
You’ll know that the seller has moved on when you see the furniture is missing.
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
Tags: buy investment property, income property, pre-foreclosure, pre-foreclosure investing, property investors
