I'm going to be going over five different websites that have upcoming foreclosure
auctions in your city. By every indication, there is about to be a ton of foreclosures
hitting the market over the next few months, really over the next few years,
so you should be ready to purchase these as an investor, maybe even your principal residence,
but you should be aware of these sites. I'm also going to give you some foreclosure and auction
investing tips. I've been to countless real estate auctions. I've purchased foreclosures, so I know
a thing or two about it and I'm going to give you some helpful hints. Let's jump into it. All
right. The first site is Hubzu. There's different levels of accounts, but you can just search for
free. I'll just do Washington, DC to give you an idea. Hubzu, they're trying to make everything
an auction property, from my understanding, but this one has foreclosure sales, as well
as just people that just want to sell their house. We'll just type in Washington, DC. As you can see
here, there's only two that they have and this one, this auction just ended. Just in general,
Washington, DC, the foreclosure process is just very lengthy and they don't always have a ton,
but there's a couple of other sites where we'll find them. Then what's cool is that
they'll show you foreclosures nearby. So that's Alexandria, Clinton, Maryland, Upper
Marlboro. I found PG County tends to have a lot of foreclosures. I've been to those auctions before,
but you got a lot of options here. You got Woodbridge. We got Laurel. We got Alexandria.
I'm just going to show you an example. So it'll give you the starting bid. That
means you can't just offer like 400,000. Every auction is going to have a minimum, typically,
of what they have to clear to sell the property. So here's the house. Some of these, oftentimes,
they're going to be listed on the market as well, sometimes they're not. So foreclosures,
you always have to take it with a grain of salt and just factor in a little bit more headache
and you got to be a little bit more patient. Doesn't look like a bad house; however, this
is important to note, the occupancy status. There's someone living there and who knows whether
or not they're actually going to leave, and so the buyer would basically have to pay cash. Often,
some people say that's a complete deal-breaker. In my book, I'm just like, well, what is it going
to cost to evict somebody? Nowadays, it could take longer with everything going on, so even
in Virginia which is a very landlord-friendly state, you might have to factor in six to 12
months of no rent as well as attorney fees. So maybe you factor in an additional 10,000,
20,000 even $30,000. If it was Washington, DC, I'd probably even factor in more.
But you can also ask an attorney, "Hey, how much would it cost to get someone out of here in a
worst case scenario?" A lot of times, you can just offer cash for keys. You say, "Hey, here's $5,000.
Leave the property." So you want to try to avoid court and lawyers as much as you can,
but sometimes you have to do that. Also with Hubzu, and some of these sites have this,
some of them don't, you have to pay an extra 5%. There's a buyer's premium. Every site's
going to be different and have different fees, but this one, there's a fee involved.
They do pay a buyer's agent commission, so if you're an agent, you can get compensated.
Everyone's going to have different ways of doing things. You have to submit it
through Hubzu. So that's the first site. Next step we have Xome. I don't know if
I'm pronouncing that right. This again has foreclosure listings as well as standard
listings. Sometimes you might find properties in your neighborhood that aren't properly listed on
the MLS. Maybe they're listed on this site. There's going to be less competition. At MLS,
everyone sees it. A site like this, they make you believe that everyone's seen it, but in reality,
not everyone's seen it. Let's do Alexandria, Virginia and see what we have going on here.
I'm partial to Alexandria. Okay, so only a few, but some of these properties are nice. Again,
you can search by different types of properties like multifamily.
You can search by multifamily properties, duplexes, different things like that. You
can explore these different sites. Always look to see if they have a premium. Some of these are
going to have premiums where you pay 5% extra. No buyer's premium, so this one doesn't have that.
Some of them, you might actually get a commission on if you're an agent, sometimes not so much,
but all of these are going to have possibilities. The way I would describe it is that
just like any type of deal, you're going to have to look at at least 10 or 20 or even
30 to really find the low-hanging fruit, the best potential opportunities. So just because
it's a foreclosure, don't automatically think that is some amazing deal. Sometimes
there's way overpriced foreclosures. If you're a real estate investor or
real estate agent looking to add a few more of these investment deals to your deal flow every
single month or every single year, reach out to me in the link below for a quick call. I do
one-on-one real estate investing mentoring with investors and agents across the country. I'm also
building out a real estate mastermind group where we can all collaborate to share deals,
raise money, and basically build more wealth and cashflow. So reach out to me in the link
below and I'd love to have a quick chat. The next foreclosure site, and this is
probably the most well-known one and probably the highest rated one, is Auction.com. They
have a ton of foreclosures. They also have different types of properties, but it's going
to be a lot of foreclosures and distressed properties. I'll just show you a quick tour.
We'll do Washington, DC. You can see there's not a ton, obviously there's only two, but there's
different properties, I believe, than the last site that we were at. Then it also depends on
the area because Phoenix, Arizona, for example, I've been to the auctions down in Maricopa County,
they have donuts and coffee and it's like this whole event. It's like the whole community comes
out to buy foreclosures. DC, it's different just because of the process. But Phoenix, you
can see that there's a ton of these foreclosures. There's also services you can pay to have people
bid on these properties for you if you want. Sometimes you have to go in person. Sometimes
you can do it online. Each site's going to be a little bit different,
but I'll just click on one of these. The majority of the time, unless the property's listed on the
market and even sometimes when it's listed, you're not going to be able to go inside. You need to be
sure that it's vacant, but you're going to have to just factor in that it needs a lot of work. That's
why with foreclosures and different auctions, I like to have some type of insider information.
Maybe know the neighborhood. Maybe even know the person that's there. You've driven by it. You know
it's vacant, different things like that. See, this one says occupied. Titles and liens and cash only.
That's another thing. You should always talk to your title company when you're purchasing an
auction property. Find out the process as far as clear title because some of these auction
properties have lots of title issues and you don't want to buy a property that you think only maybe
there's only a 100K worth of debt that you know about, but in reality, there might be a second
lien of 75,000. Sometimes that happens, so that's why you need to make sure you're buying the first
position lien. Also this one, it's not offering any commission, it looks like. Some of these,
before the actual auction date, something will happen like the personal catch-up on payment,
so they'll make some type of agreement or the bank will delay it. 100% of these do
not actually get sold at auction. Sometimes, just different things happen before then.
A couple of quick facts about foreclosures before we get to the next website,
every state's going to have their own process and procedures and timeframes, but as of now,
and this does change year to year, the longest foreclosure process is currently Hawaii and it
takes about 2,500 days to foreclose, which is the equivalent of almost seven years. But that being
said, I would love to purchase a foreclosure in Hawaii. Another interesting fact is that the state
with the lowest percentage of foreclosures is, put it in the comments if you can guess, Vermont with
0.01% of properties being foreclosed on. Maybe that's because Vermont only has like 100 people in
the entire state, but that's pretty interesting to know and again, I would love to purchase a
foreclosure in Vermont if they ever came up. The foreclosure rate in general in the United States
is about half of a percent typically. In 2009, it was a little bit higher. 2020 timeframe, a little
bit lower, but usually, about half a percent. Next step, we have Foreclosure.com. Once you
get into these sites, there's different things that you can find out. Everyone should have their
niche and you can try looking to foreclosures, look into every part of the site. There's more
to it than just searching by. There's short sales, bankruptcies, different things like that. Again,
I'll just show you Washington, DC or let's do Virginia, see what we have going on here. So
this is the entire state, 15,000 results. That's probably a little bit high, but look, it's cool
because you can rent to own, bankruptcies. There's so many different types of properties. Let's see.
There's multifamily. This one, okay, makes me actually sign up, but you get the idea.
There's so many different types of properties and different foreclosure opportunities out there and
there's going to be a lot more in the near future. Then we have the HUD Home Store. A lot of times,
and it always depends and the rules are always changing, but for the first couple of weeks,
it has to be an owner occupant, but you can still potentially get a great deal. Not every
foreclosure requires cash. Some foreclosures, if the house is not in terrible condition and
it's in barely livable condition, you can still potentially get a loan on it, a traditional loan
or even an FHA or a VA loan in some cases. Let's just try Maryland here. Again, some of these
properties will be listed, some won't be. You got to do a little research with foreclosures
and spend some time on them, but look at this. We got some potentially good deal. 165 for a house,
that's crazy. Okay, Baltimore, that makes sense. A really quick way to run comps is just look at
the Redfin value and then look at what the value of what they want is. If there's a big difference,
every house I think I've ever purchased, there's always been a minimum 100K difference between the
Redfin value and the asking price or at least what I ended up purchasing it for. If there's a
big difference, then you'd want to evaluate it a little bit more. Calvert County. See,
this one's 203(k) eligible, FHA, and it'll have different addendums on it, agent info.
This one also requires owner occupants, and usually, that's like I mentioned,
it's for the first couple of weeks or maybe first couple of months or so.
If you're an agent or a real estate investor and you're looking to work
one-on-one with myself and also join my real estate investing mastermind group,
I'd love to have a quick chat with you and see if it'd be a good fit. Just book
a call. There's a link below. We can have a quick chat. See if it'd be a good fit. I'm
looking for investors and also agent-friendly investors nationwide to help build out this
mastermind group so we can collaborate on more deals, get to know more people and just
have a great group of like-minded people working together to make more money, build more wealth,
get more cash flow. You know the drill. So I'll see you in the next video. Bye.