The recent housing market decline has provided an unprecedented opportunity for buyers looking to purchase a condo to be their primary residence, second home, or investment property. The State of Florida was hit hard by the foreclosure crisis, and many condos can be acquired at rock bottom prices, if you know where to look. As a Miami condo Realtor, I work with many clients who are interested in these foreclosure deals.

A Realtor Can Help

For most people, the best option is to work with a Realtor who is knowledgeable about the local market, who is responsive, and has time available to preview these foreclosure properties for you. Banks are currently holding foreclosure inventory which they list for sale using local Realtors. Once the inventory hits the market, it doesn’t last long — most properties are sold within 30 days to all cash buyers. In Miami, it is not uncommon for the best bank owned condos to receive 20 to 30 offers. If you want to obtain one of these properties, it is important that you submit an aggressive all-cash offer. Most of these properties end up selling above the list price. As a Realtor, I receive notifications when these properties are listed for sale, and am out daily previewing these properties on behalf of my clients. I suggest you find a Realtor to do the same for you. Your Realtor will also be able to give you advice on what price to pay for the property. On my blog you can read more about buying a Miami foreclosure condo.

Foreclosure Auctions

Another option for savvy buyers or investors is to purchase a condo at a foreclosure auction. The foreclosure auctions are run by the county court, and to purchase a property you need to wire the funds to the court within 24 hours. As a result, these are all cash transactions. Many counties are moving their foreclosure auctions online. Miami-Dade County and Broward County have been conducting successful online auctions for over 6 months now.

There are no restrictions on who can purchase property at the county foreclosure auction as long as the individual has the cash available for payment. However, the foreclosure auctions are usually attended by knowledgeable individuals that are able to navigate through the potential pitfalls of purchasing a property at auction. At auction, the properties are sold “as-is”. This means in most cases, you won’t know the condition of the property interior in advance, which could be damaged.

Furthermore, there could be a tenant living in the property that you might have to evict. Also, the property may be subject to additional liens that you will be responsible for as the new owner. For example, you could purchase a property at auction where the second mortgage holder is foreclosing, leaving you responsible for satisfying the terms on the first mortgage. If the property is a condo, you might be responsible for paying off the balance of the monthly assessments that are owed to the association.

This option isn’t for everyone, as I’ve received several calls from individuals who thought they were paying $15,000 for a condo worth $150,000. What they failed to realize is that the condo association was foreclosing on the unit, not the first mortgage holder. Now these owners are stuck having to satisfy a $300,000 mortgage which is still in first position. Buyer beware.

About Guest Author: Marc Knight is a Realtor specializing in Miami & Miami Beach condo sales. He operates a website and blog called Miami Condo Shop

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“If the real estate gang could, they’d raise the rents in the graveyard” – Frank Dane

Click Here to Listen [18 min - 8 mb]

I’ve recognized that as I get older, I want to deal less and less with things that cause me grief.

For example. yard work.

Conversation with Thomas Caldwell – KJAM Radio Show Notes:

• What 3 Things Should An Investor Should Look For In Property Managers
• Do Concessions Really Work?
• Vacancy Rates Are They Really That High
• What to look for When Deciding on property management companies in Arizona

Click Here to listen to the show. Enjoy!

If you would like the bonus and that I talked about in the show. Just leave a comment below and I will send the software to you.

Moving Forward,

www.InvestmentRealEstateCorner.com – 1.888.462.3771 ext. 443
Huge Land Ranches – Wholesale Properties – International Real Estate

P.s. You can listen to my other shows on iTunes, http://itunes.apple.com/us/podcast/the-kendall-matthews-show/id268598793.

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Buy land, they’re not making any more of it — Mark Twain

First a point of disclosure.

As of the writing of this article I have participated in a total dos tratos de tierra (that’s a fancy Spanish way of saying I’ve only done two land deals so far). One was and still is an 11-acre development deal and the other was a 2 acre residential listing that did not sell.

Is land my area of expertise, the answer is no. So, why the heck am I writing about it.

Because Dirt is Cheap!

As in investing Realtor, I know it’s going to get even cheaper. Therefore, I’m going to make it a part of my “Circle of Competence” as Warren Buffet would say.

If you hadn’t heard there are a few foreclosures going on. Home Builders who have been around for over 50 years have vanished, newspapers like the East Valley Tribune are shutting down, car dealerships like the ones that used to line the streets of south Scottsdale, Arizona have become empty shells.

But the dirt remains. Buildings have come up. Building have come down. Jobs have been created. Jobs have been terminated. But the dirt remains.

A federal government employee once said, “Never let a good crisis go to waste.”

When To Buy Land?

When the seller has more pain than you do and there is even more pain in their horizon. The light at the end of the tunnel for the seller is not financial freedom, but a train… a train of pain.

That’s when you buy. That’s when you get the best deals on just about anything, isn’t it?… Even AZ land foreclosure. If I had to choose between a bank foreclosure or a short sale, I’m choosing to go to the land foreclosure auction website and make my bids… as soon as I now what I’m doing.

They’re Opportunities In Crisis, Yes?

Let’s be honest, there two things you have to wait for to become successful. Pain and Envy. The media will tell you which is in abundance. Looking back in history it seems to me the wealthy bought during the pain periods then sold during the envy periods.

Benjamin Graham called that person, “Mr. Market.” And as an investor you are to do whatever Mr. Market is not. And today Mr. Market isn’t buying land.

Two Things To Know Before Purchasing Land For Foreclosure

To make trillion gazillion dollars in land, you must either…

1. Own land that rests in the storm of progress and growth.
2. Create a higher and better use for it.

I learned from land expert Jack Bosch, that back in the day Disney Corporation bought the swamplands near Orlando.

Would you buy swamplands? Don’t lie! If you said yes, then I have a bridge in Brooklyn listed offering seller-financing with a small down-payment.

From what I found that before you learn… how to buy land… you must ask yourself are you willing to do the intense research and complete due diligence. Do you have what it takes to make a successful project?

If so, don’t waste a good crisis.

Moving Forward,

Kendall E. Matthews
www.InvestmentRealEstateCorner.com

P.s. Have you bought land before, do you want to learn more? If so, you should check out some my review of land investing training tools coming up.

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This year thousands of homeowners will step into the abyss of having their homes foreclosed. The number of folks who think that buying foreclosures is easy, is staggering.

But that is simply not the case. There are so many things that can go wrong when trying to purchase a foreclosed property. Foreclosures simply aren’t easy to buy!

One of the things that makes’ it difficult, is the uncertainty of communication. There are multiple layers of red tape you have to go through just to get to a decision-maker.

Here are my five Keys to buying a foreclosed property:

1. Don’t assume–no matter what the list price is, do your own comparables. Talk with the neighbors, they might know something about the property that the bank doesn’t know, and wouldn’t tell you if they did.

2. If you want a smoking deal then search for properties that have been on the market for over 200 days then offer 20-30% less than what they are listed at. Just because it is a bank has it listed at a certain amount, doesn’t mean they know how to price properties to sell.

3. Treat your real estate agent as your best friend… even if they aren’t, because you will be talking with them often. Many times they don’t know what’s going on with the bank either… so you might as well be on the same page with them.

4. Don’t be intimidated by the banks seller addendum’s. They aren’t scary… just lopsided because they want all the terms to be in their favor.

5. When you feel like it is a big hassle and you want to quit, repeat three times; “I like helping to pay my landlords mortgage payments!

You have to be patient in dealing with banks, it could take between four to six weeks just to get a response from the banks about your offer. If you’re renting, it’s best to get a month-to-month extension because when it’s time for you to close, you’ll need to close quickly.

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• Understanding The Rules of Short Sales In Arizona – with Kitt Kritchlow
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