Today, I’ll be giving you three creative suggestions of how to find distressed and off-market homes.
1. Foreclosure auctions. In Arizona, when a homeowner stops making payments, the bank will try to work out a deal with them, but if they’re not successful, they’ll file for foreclosure. They’ll give the homeowner 90 days to pay whatever they owe, and if they haven’t paid that, then the home will be put up on a foreclosure auction. This auction is open for everybody, and they can buy the property at a pretty decent discount. You do need to be careful because you’re buying the property in as-is condition and you have to buy it with cash. You have to bring the cash within 24 hours of winning the bid.
2. Tax and court records. Through searching the tax and court records, you can find motivated sellers such as those going through a divorce, those who have tax defaults, probate estates, or anyone who might need to sell. However, a lot of these people might not want to sell, or don’t want to be bothered. Additionally, searching these records could be time-consuming.
3. Use direct marketing.This could mean using direct mail or phone calls. You can write to the homeowners and offer to buy the property, or if you like a specific subdivision, ZIP code, or city, you can pull phone numbers and call them directly. This approach can be successful for specific situations. However, it could also be very expensive, so be careful not to go over budget.
If you have any questions or need any help, feel free to reach out to me. I’d be happy to help.