Here is a video I made to demonstrate a simple way to analyze bank foreclosures. Foreclosure listings can be a great way to invest and make money but proper deal analysis is key to being successful. A copy of the checklist used in the video is available below.

Click here for the Deal Analyzer spreadsheet

Coming Soon:

• Get foreclosure listings Free, and I’m not talking about a free trial I’m gonna show you how to search practically any market free as long as you want when ever you want.
• How to find property values you can trust
• How to estimate repairs
• and more, so stay tuned!

An article on Bloomberg.com states home prices in California have dropped 32% suggesting the abundance of foreclosure listings is to blame. California had the second-highest U.S. foreclosure rate in April, one for every 204 households, and the most foreclosure filings for the 16th consecutive month, according to RealtyTrac Inc. a foreclosure listing and data provider

This is good news for owner-buyers and investors but it doesn’t really represent bargains galore as much as it signifies the market returning to normal. What I mean is that real estate prices in California increased so high so fast that normal everyday folks couldn’t afford to buy a house and many of the ones that did buy a home are struggling to keep them. How do I know? Well that why they are being foreclosed. The rapid price declines in California as in many parts of the country is evidence of the market finding normalcy, that magic price people can afford and are willing to pay.

Another article at blackenterprise.com I was reading said it best; “May 21–More than one-third of Los Angeles County families could afford to buy an entry-level home in the first quarter — 66 percent more than a year earlier — thanks to an epidemic of foreclosures that depressed prices, a trade group said Tuesday.”

It’s really just basic supply and demand. When the folks can’t afford the supply demand falls.

You don’t have to find all the foreclosure listings and properties yourself. There is an industry of people lined up and waiting to help you. There are countless others that will help you if you only ask and/or give them a reason.

1. Use bird dogs. No, not really a dog but a person who looks out for distressed property. He or she finds potential deals and sells the “lead” to investors. Many people are willing to bird dog because it does not take any money or special skill to find distressed properties. What you pay this person varies because bird dogs can give you raw leads or they can gather more detailed information for you. Find these people at your local real estate investment club. Just one note of caution, some states, consider bird dogging real estate practice requiring a real estate license. Check with your state’s real estate commission for guidance.
   
2. Ask your mailman. Who knows the neighborhood better than your mailman?
   
3. Pass out business cards everywhere you go with a message on the back that says you buy houses and will pay for leads.
4. Find a real estate agent who will represent you as a buyers agent. Agents work on commission and will support and help you to the end of the earth if they believe you are on the level. The problem is they get calls all day long from fake or wannabe investors. My advice; don’t ask too much up front. Try to get a list of properties and drive by them. Call your agent to show you the ones you are serious about and allow them to handle the sale. After a sale or two you will have a friend in the business.
5. Stay in touch with your sphere of influence. The most successful real estate agents in the business get new business this way. Chances are you probably know 50 people, friend and family types you call by first name. Make it a point to speak with these people on a regular basis (every 1-2 weeks) and ask if they know of someone in need of selling a home. Tip: when you contact them make it a reason other than real estate.
   
6. National Foreclosure Listing services. It’s probably like beating a dead horse at this point but the national foreclosure listing services like Foreclosure.com and Realtytrac can email you listings as they are posted on the market in real time.