find investment propertyThere are many, many ways to find an investment property.

In order to be a successful real estate investor whether your goal is to buy and hold, buy and flip or a combination of both, the primary goal is knowing how to find investment property at the outset.

If your goal is to flip houses, you first need a house to flip, right?

Yet instead of trying to invent a brand new wheel, why not take advice from the pros and learn from them? Do what they do and follow their lead. There are ways to find investment property that can turn a quick profit but you need to know where to look and when.

Distressed Owners

A distressed owner is someone who, for whatever reason, can no longer afford their house payment.

This usually means a loss of a job or an extended illness or a couple going through a divorce. Whatever the specific situation, distressed owners are in the middle of some major life changes and their real estate is in danger of being foreclosed upon by the bank and need the help of a real estate investor to take the property off of their hands.

To understand the dynamics of finding investment property when a foreclosure is looming you need to understand the process a bank must take before foreclosing on a home. Contrary to some, banks aren’t lurking in the wings, just waiting to foreclose on a property.

Banks don’t want real estate in their portfolio, they want to make loans and receive interest. Banks with too many foreclosed properties are soon shuttered by regulators.

Although the process is NOT the same in all states, here are some general rules that may or may not be applicable in your given area. When a homeowner misses two consecutive payments, the bank is required to file an official Notice of Default, or NOD.

The NOD is sent to the homeowner via certified mail and warns the homeowner that unless their loan is brought current the bank can foreclose if the owners miss the next payment. This NOD isn’t kept secret, in fact, it’s a public record for all to see.

If the owner indeed misses the next mortgage payment, the bank can file for foreclosure. This notice, too, is a public record. That’s where you find investment property.

The NOD and foreclosure filings will list the owner’s name and address, the mortgage company filing for the foreclosure and the outstanding loan balance. With this information, you can decide how much to offer the owner and help the owner avoid foreclosure.

There are various online companies that provide foreclosure data for a fee or you can visit the county offices where the filings are held and get the information personally or hire someone to do it for you. When you get the NOD and foreclosure information first-hand and not through a service, you get an advantage over those who wait for the foreclosure information to hit the internet.

Sometimes as much as 30 days ahead of other investors.
David Slabon