If you are new to real estate investing, and you think gathering listings is the first thing you need to do, think again! You are doing it backwards. Find out what you should do first.
Acquired Assets Section of the Manila Bulletin (Sunday Edition)
True story:
Way back in 2005, I would always buy the Sunday edition of the Manila Bulletin.
I would look at the listings in the Acquired Assets section.
I would find some listings to be interesting because they appear to be cheap.
However, I had no idea if they really were cheap (or not).
I did not know what to do next, and I got stuck.
Now, this may shock you, but:
I realized that starting my search with listings of foreclosed properties was wrong.
I got it all backwards.
I should have started by first choosing a location I have already visited.
I would then be able to see the “big picture”.
This means I will see if there are too many properties for sale (over supply/probably over priced).
I will also see if there are very few properties available (which is good).
In other words, I would see potential problems/good things with that location.
Because of my realization, I got my act together.
This is what I did differently
- I tried one location near me, and I visited a friend who lived there (to see if it was any good).
- I went all around the subdivision and identified ALL properties for sale (for foreclosed properties, I checked which bank owned them)
- I studied that location and learned as much as I could.
- When I was happy with the data I gathered, I decided to focus on that location…
That’s the only time I got more listings from more banks that had properties in the same subdivision.
To cut a long story short, I ended up buying several foreclosed properties there, and I was able to flip them all successfully.
This reminds me of an interview where I was asked how to find foreclosed properties.
Instead of just saying “Just look for listings from banks”, I gave a different answer based on what I learned above.
So if you want to start finding foreclosed properties and don’t know what to do…
Watch this video where I explain how to start the right way
Video Transcript
How does someone know where to get foreclosed properties?
Let’s say I want to buy one, I don’t know where to go, what do I do?
First, you need to determine your target location.
You go there, go around the subdivision, go around that village or that city.
Not city, it’s too big. It should be a subdivision.
Then if you find out that there are properties that are for sale,
if it looks like a foreclosed property, try to find out if it’s
really from a certain bank.
Find the for sale signs.
The problem with foreclosed properties is most of the time, the signs are
taken away for a lot of reasons.
Sometimes the brokers handling it would rather bring their own
buyers and no one else. I see.
Most of the time, the occupants.
By the way, if it’s occupied, move on to the next.
It’s not worth yourYeah, that’s true.
How do you know when there is a bank auction?
Right now, the best way would be to be part of the bank’s mailing list.
They usually email everyone with the upcoming auctions.
Before, it was Manila Bulletin, but now you seldom see any ads in Manila
Bulletin, except for the very big banks.
That was 30 years ago. Yeah.
So better be part of the mailing list, call them, get the list,
and then tell them, Please add me to your mailing list so that I can be informed.
If you’re a broker, you’re lucky because you can get
accredited, and obviously, they will send you their list so can help
them with selling their foreclosed properties.
So you’ll get it.
Best regards,
Jay Castillo
