Foreclosure Deals Coach Podcast

Unbelievable Foreclosure Deals—You Won't Believe How Easy it is to Buy One!

August 10, 2023 Chris Lawler
Foreclosure Deals Coach Podcast
Unbelievable Foreclosure Deals—You Won't Believe How Easy it is to Buy One!
Show Notes Transcript

🚀 Master Foreclosure Investment with Donny
Learn the secrets with the "5 F’s of Foreclosure Investment System". Dive deep into properties, transform them into profits, and shape your financial future, all for just $49.
👉 Enroll Now

💡 Unlock Your Foreclosure Potential with Donny
Ready to secure a minimum profit of $25,000 on your first deal? Donny's "Do it with you" coaching model guides you step-by-step. Turn potential into profit.
👉 Schedule Your Call Now

🔥 Join the Foreclosure Experts
Step into our dedicated community. Gain expert insights, strategies, and connect with like-minded investors.
👉 Facebook Group

🌐 The Ultimate Foreclosure Hub
Equip yourself with the best-in-class resources, strategies, and updates from the foreclosure world. Your investment journey, elevated.
👉 Official Website

🤝 Network with Donny Coram, The Foreclosure Deals Coach
Forge connections, share your journey, or simply drop a hello!
👉 LinkedIn
👉 Instagram

Note: Some links may be affiliate. Your support keeps us creating quality content.

What's up guys? It's Donny Korum, your Foreclosure Deals Coach, and on this episode of the podcast, I'm gonna give you five tips that's gonna make your foreclosure investing process super easy. Stay tuned, you're gonna love it. Welcome to the Foreclosure Deals Coach Podcast. The real estate market is shifting. The time is now. The Foreclosure Deals Coach Podcast is your home for the mindset, tactics and tools needed to break through your limiting beliefs and find freedom by investing in foreclosure deals. Don't buy a house, buy a deal. You need to get into this right now. And now your host, the Foreclosure Deals coach, Donnie Corrum. Oh, hello, hello, and welcome back to the Foreclosure Deals Coach Podcast. I'm your host and the Foreclosure Deals Coach, and on this show. We discuss the mindset, tactics, and tools that you need to become a successful foreclosure investor. Guys, here's the thing. A lot of people overthink this process, and in the end, it doesn't really need to be overthought. In the end, foreclosure investing is about buying low. And selling high. So why do we make this so complicated? Well, the answer lies in, we have been trained since day one to kind of overthink things like look at, look at how long we spend in certain topics in class. You know, we're in grade school, middle school, evaluating a lot of the same data over and over again. I'm not saying it's a bad thing. Okay? What I'm saying is in investing it can be difficult. To move forward if you are always looking behind you and trying to overanalyze. So our mindset piece of the day today comes from a meet ray and the saying he shares with us is, oh, here we go. Stop overthinking. Put more energy into what you really want to do. Well, here's a common theme. Everybody who hops on a coaching call with me, not too surprisingly, wants to do their first real estate investment deal. So why doesn't everybody do this? Well, in most cases, I'm talking to people who just can't help themselves. They gotta overthink. Everything. Now, a lot of my clients are engineering types and listen, I, I, I respect that. I'm not an engineering type myself, but I respect people can really dive into details because we need those people. We need the people out there who can really explore all the minute details that are out there. But what it comes down to, if you realize that it's about buying low and selling high, and then you really want to do this, that's a critical element. Do you have the desire necessary to actually do a deal? Then you don't need to give it that much thought. Beyond that point, there's a process, a path you can follow. I take my students through finding. Figuring funding, fixing and flipping their first foreclosure deal at a pro, at a profit of a minimum of$25,000. And all of them at the end, I, I, I would speak to. Once it's done, they're like, well, this was harder than I thought it was gonna be in a lot of act. A lot of aspects and it was easier in other aspects that I thought were gonna be really tough. So that's gonna, that's been the case across the board so you can't overthink it too much. What I'm gonna do is give you some tips and tricks to avoid, um, that can help you through that. And I've got five bullet points I really want you to discuss that's gonna help you to not overthink this and make this process super easy, I promise. Before we do so though, I do wanna hop into our article here because Warren Buffet did a really cool, they did an article about value investing. I'm just gonna share my screen here cause I want you to see what Warren talked about as it relates to investing. Warren Buffet obviously being one of the greatest investors of our time. Right? And he gives some tips and tricks here that the, the opportunity in investing is other people doing dumb things. Okay. Now I don't wanna knock anybody who's at a financial jam. Okay. But I have worked with a lot of foreclosure. I have done a lot of deals in my career, and I can tell you when I do get the history of the foreclosure that's happening, or I do get the seller history, it is usually. Not always, but usually the seller doing something dumb. One of the dumb things that we see a lot in real estate investing is, you know, you got, you got sellers who wanna take on entire house remodels on their own, so they start painting, then they realize they don't like painting, so they work on the flooring. Than the new paints getting on the floor, right? They, they start on the cabinets and et cetera. The net result is they don't complete the property rendering it less valuable than it was when they started. And as a result, it was just a dumb thing that generally leads to having to sell to an investor. Somebody who's speculating on the market wants to make money on the deal. And is willing to put in the money to invest in that property to actually make a profit. Okay? So if Warren Buffet has made billions of dollars investing on people doing dumb things, I'm pretty sure you can make a couple bucks doing so as well. So without further ado, we're gonna hop in and bring up five points. They're gonna help to make your investing much easier. The first point, bullet point number one, is simply understanding and foreclosure investing. Right, and this seems kind of obvious, but I literally explained it on every call, and some people don't have as clear of a, of an understanding of this as they probably should. Our, you have to understand that foreclosure occurs because someone is behind on payments, leading the, leading the lender to take legal action to represent the property. They, they take the property back as collateral. This is an opportunity. Because you can purchase those homes at below market value because before the property is foreclosed, there's usually a balance on the property that is less than the value of the property is the moment. So they owe less than the property that it's worth. There's a number somewhere between what it's worth. Minus the repairs and what the seller owes. That is kind of our, the number we're looking for in order to make a profit on that deal. So if you understand the foreclosure process, you really dive deep, which we try to help you out with right here on this show. But if you're diving deep into that process and you understand it, you can help the homeowner through that process to sell you the property prior to it being foreclosed, and that's where you're gonna make your maximum. Return bullet point number two is researching the market, and we talk about that on pretty much every show. We're gonna do a deal analysis where we walk through the what the property is worth. And you have to understand prior to investing in a foreclosure or a pre foreclosure, you have to understand a lot of things. The property value is one thing, but you also wanna look at recent sales data, which gives you that. But in addition to the property value, it also tells you your days on market so you can get a feel for how long it's taking to sell. You also need to look at vacancy rates and local economic indicators like. Unemployment rates in the area and et cetera. You don't wanna spend a lot of time and analysis paralysis. But if you live in the market, it's much easier to research in. And if you don't live in the market, you wanna work with an advisor who does work in that market. Most of my clients do their first deal right here in my local market. Then they take that knowledge and they use that to invest in a deal in their market. The upside is by doing a deal in this market, you're learning the process. So you can take that process and reapply it to another deal, but because you made a profit on that deal, it pays for your investment in getting the education and getting the coaching. The third point here is financing and budgeting. When you're buying a foreclosure, your financing plan has got to be essential. See, the reason that other guy got in trouble is cuz his financial plan was not that great. I feel bad for people to go through job loss and divorce and things of that nature. But when you're buying a foreclosure, you're generally using hard money or private lenders to do so, and the interest rate is generally a lot higher than it would be on a conventional mortgage. So you gotta make sure you've got your financing plan in place and access to the funds that you need to complete the remodel. When you buy a house with my lenders, we finance the remodeling into the loan. So as you complete the property, you do that on a draw. That pays you back for whatever progress you were at on the property at that time. This way, you're not running outta money prior to completing the property as long as you've done your homework effectively on the rehab amount. Next up our fourth point, which is our property inspection and due diligence, and we talked about this quite a bit, but the, what is happening here is you're inspecting the property for what needs to get done. If it's a pre foreclosure, you should have time to do that. If it's after the foreclosure, you don't gently get time to do that, but that you don't generally need to because when the house is bank owned, like a HUD home, a HUD foreclosure, you're not, they're not gonna fix anything anyway, so you don't need to worry about that. But let's say you're buying a house with a tenant. Well, you gotta figure out how long is that that tenant gonna be in there before you can take over and start doing the work. That is part of the due diligence process that you just absolutely have to know to make sure this investment is a solid one. Finally, if you're gonna keep the property long term, You need to know about property management. Some of my clients buy properties and they take their property, their profit in the form of equity by keeping the property for the long term. So once again, you want to work with a property manager that is proficient and can make sure your property's gonna stay occupied in that area's. Gonna properly screen your tenants and make sure that if you're gonna keep this for the long term that you don't eat up the equity you earn by doing this. Deal of 25,000 or more, and you're actually making money on that above and beyond by following these five tips. Before you buy a property, you can make foreclosure investing super easy. Listen, there's a formula to everything, and if you follow that formula, you will find yourself making money on every single deal that you do, which is gonna help you to build your net worth, increase your income, and simply put, allow you to do. More deals because that's the objective. Although I help people to do their first deal, my objective is that you learn enough about the process, but you wanna keep repeating this process over and over again. Building your net worth, building your momentum, ultimately making more money in the long haul while you maintain your day job, right? While you are living the life that you wanna live. The great thing about being a real estate investor is you can travel when you wanna travel. Most of these deals you can do remotely. You know, we're not teaching you to do the work yourself here, the ideas that you're hiring contractors, so you can buy the flip and then go to Hawaii for two weeks if you want, while the construction's getting done so you can get your time freedom, your location freedom, and your financial freedom. From foreclosure investing, it's an incredible opportunity for people who want to make money a little bit passively, but a little bit actively by investing in below market properties. With that, we're gonna hop in and do a deal analysis as we do every week on this show, we're working on a property that we acquired from an agent partner here in town. One of the benefits to buying as many deals I've bought here locally is I've established relationships with agents all over the country, but really right here in my local town who wanna bring me deals. So we're working on a deal right now and I'm gonna bring my screen up so you can check this deal out. Here we go. So we hop into my deal check app. We were looking at a different property earlier. So let's get rid of that and scroll down here to the deal we're working on. It's on 43 55. Blackwater. It's located in Peyton, Colorado, which is just east of Colorado Springs by about 10 miles. It is surrounded by military bases. On one side you've got Peterson Air Force Base, which the U actually Peterson. Uh, air Force Base I think is moving to Space Force Base. We also have Shrever, which is doing the same, so we've got a lot of military and both of them are about the same distance from this property. My client is picking this deal up for$395,000. Which is a little higher than I generally want my clients to invest, but this is such a great deal. I just couldn't say no to this one. So we pushed the price range a little bit. The rehab we just got estimated, we did our due diligence, had my preferred contractor go out there, take a look at the property. Came in at about$45,000 in the remodel, but we always add a little bit of buffer room cause we tend to find stuff we're not expecting on every deal to some degree. We wanna be prepared for that by building it in. And we do a little bit of comp analysis here and we find that the sales in the area. Kind of nearby. Normally I wanna be within a mile or two or less of the property, but because this house is in a rural zone, we have to go outside the area. So here's a property 3.6 miles away. A little bit bigger, but not remodeled at all. We can look at the pictures I did earlier, but this is an original condition and it went for 5 25. The reason these properties are going for so high on this square footage is cause of the acreage they're sitting on. This property is on. Uh, three acres, which a lot of people find very alluring. That increases the purchase price. It has a storage shed. It's got a bunch of other perks. That makes us a no-brainer deal for somebody who wants to live a little bit out in the country, but still be close enough to the city to get to work. Or if they're military, which is high probability in our town, they can get to Peterson Air Force Base or Shriver Space Force Base in a few minutes. Right? Here's one on Penny's Peak view. Went for 5 24. We got one on 4 85, et cetera. After our comp analysis, we got one here. It's a little bit bigger and it's got an extra bedroom bath, but it went for 6 25. So based on these comps, we selected an A R V of 525,000. If we do the quick profit projections on this, buying it at 3 95, spending 45,000 or a little bit more on the remodel, this client should walk out of this deal. With a$45,000 profit based on a four month projected whole time, this is an awesome deal for a first timer because it's a very lightweight remodel. If you wanna check this deal out a little bit more, join my Facebook group. I'm gonna post, uh, the deal check in there and the walkthrough, so you can check that out. Hey, yeah, we, we'll include the link here on the video too, but you can do a Matterport tour. Of this property and walk through it and see it in real time. What you're gonna see is it needs some work, but it's not in terrible shape by any means. It is an excellent opportunity for a first time investor and I'm super excited. Help my client get into their first deal. Uh, we've done the analysis, we've done the homework. Somebody did something that wasn't smart a little bit and is now selling this at a discount, and we are profiting from that as we do each and every single day. With my. Five step process to helping you do your first deal. So that's really the deal guys. It's there's opportunities out there. You just have to be willing to take the first steps, and I can help you to take the first step with my coaching program. The bottom line is you have to be willing to take that first action. And if you wanna do that, please schedule a coaching assessment. Call Join the the Facebook group at fd coach group com. Let's have a conversation whether foreclosure investing is the right fit for you in the meantime. I can tell you that the market is shifting right now. Interest rates are starting to trickle down and we're gonna see some incredible opportunities. So please subscribe to this channel, get affiliated with the system, become part of the conversation, the Facebook group, and hopefully if you're ready and the time is now and you're excited about doing this, I would like to help you do a deal. But just know that if you follow some very basic steps, like the points I made today, you should have no trouble selling through a deal, making some money on the deal, and ideally heading out to your next deal in record time. The opportunities are there, the market is happening. The funds are available for investors to do deals. All that's missing is you right now. So if you'd like to take, make that change and do a deal like the one we described today, I would certainly like to work with you in doing that. That's our show for today, guys. Please join the Facebook group at Ft. Coach Group, uh, subscribe to the channel and stay tuned. I got a lot of great deals coming at you right here on the Foreclosure Deals Coach Podcast. With that, this is Donnie Corum, your foreclosure deals coach. Thanking you so much for tuning in each and every single week to the Foreclosure Deals Coach Podcast and reminding you now and always don't buy a house. Thank you for tuning in to the Foreclosure Deals Coach Podcast. If you like what you heard here today, remember new episodes are uploaded weekly. Subscribe wherever you listen to your podcast. Do you want more of the foreclosure deals? Coach, are you ready to learn the mindset tact? And tools required to be a successful real estate investor. If so, click the link below to schedule a one-on-one coaching Call today with Donny Korum, the Foreclosure Deals Coach to determine if coaching is right for you. And remember, don't buy a house, buy a deal.