And today is system Saturday the day that I bring you a bit
ahhhhhhh!
I did everything myself and here that is not how he do
the business and that right there is a house that I have already flipped
as well. And I already know that I can flip this house to a buyer on my buyers list
cause I got strong buyers list in this area
hey what's up guys john cochran here and today is system Saturday the day that I bring
system that I use in my business you that you rip of duplicate using your own
local market now on today system Satuday session what were gonna talk about is the 4 reason
why buying
foreclosure homes is toxic okay and here are those four reasons number one
whenever you're buying foreclosure homes got there is a lot of competition on in
it is the thing
that all newbies go for and here's why whenever you're looking for
ahh to start a real estate investor or maybe you've been a real estate investing for a
long time
your job is to get properties at a discount that's how you make money is by
putting properties under contract in buying properties that are cheaper
then market value the number one thing that people always think about whenever
they're trying to buy these properties is
well if I'm gonna get a property cheap is got to be a foreclosure that is false but I can
tell you that's what everybody thinks that there is a ton
of competition on these properties on day one as soon as a property goes up on the
market. Number 2 reason is
guy's it's attempting to overpay it is very very tempting to overpay
on foreclosure property because there is so much competition which makes them
very very toxic in order to buy number three
is as how do you even know think about this how do you know
the listing agent on all these are real properties that they're really even
submitting your bids
and not theirs and let me just over this real quick so whenever you are
submitting a foreclosure bid to the bank
okay you're bidding on a property it's foreclosure in and you're submitting that
to the bank
that listing agent I'm not saying this is the case but it's often made me
wonder that listing agent has contact with say bank America
now if you the buyer is going to contact bank America
let's just go there and just say good luck getting a hold that same
exact person that the listing agent is dealing with a bank america that knows
about that fire
it is not gonna happen okay but whenever you're buying from motivated seller
whatever it may be
and you submit an offer no thats could be on the unless it is not a foreclosure
you submit the offer and in the listing agent you you can literally the listing
agent can go behind you because you can always go to property records
and find that seller and just say hey did you even get my offer
so I'm really want you to look at that and how do you know they're even
submitting your bids to the bank you don't
you don't what could make them very very
toxic to buy okay. Number four is guys lots of people bid on this property is
what newbies go after
what everybody with things that that go after to find the thinking discount
so lots of people after them
and you're always into multiple offer situation so
its it's like magic you go on you you you find this property on to the MLS
it's a foreclosure
and the listing agent they are putting you into a multiple offers situation
just about on every single one of this and and most of time guys it makes me wonder
if really I'm in a multiple offers situation is there really other people
bid it against me and the truth of it is that you never know
but it seems like to me that on every property that we buy that is a
foreclosure
I'm always in a multiple offers situation and I don't like that
in the reason that they put me in the multiple offer situation is because
they're saying that there's multiple people that are bidding on this property
which is going to force my offer say I at a hundred thousand dollars
to go up to 105 to got to 107
so that they have more commission they look like a rockstar to the bank so the
bank will keep feeding them
listings, okay so what we do on this
is I'll tell you what we used to do on this is that whenever they put me into multiple
offers situation my bid from a hundred thousand will go two up to 105 107
so my profits on this property goes from right here
and as shrinks simply because they put me into multiple offer situation
so what we do now is guy's theirs a sellers all around in your own backyard you just
have to know how to find them
you gotta know how to find so what we do now is
guys our bids to banks are that's are highest best that's right now so
if I bid a hundred thousand on it they put me in multiple offer situation
sweet dud I'm gonna keep it at a hundred thousand because I know
that there's a hundred other motivated sellers around you know in my own
backyard that I can buy they're property and not have any competition on
okay so guy's I really want to herbs you that whenever you are in multiple offers
situation on
these foreclosure properties it can be very very toxic because
they can get your the listing agent can get your offer
your bid up and up in up which is going to take your profit
down down and down so guys hope you like this video
stick to your got on this because that's exactly what is going to make you a lot
of money
in this scenario so guys like us on Facebook subscribe to our YouTube
channel
and I'll see on the next video, see you guy's