We at ILFLS know you have a busy schedule so here are a couple of quick skim-worthy tips aka brain food level = snack!
For every property listing on ILFLS, you will see a complete record. This includes the “additional defendants” section, which may list an HOA (Homeowners Association). It is extremely important for you to contact the HOA regarding the property you are interested in because there may be additional fees owed during the foreclosure. You can find the HOA information through a simple Google search using the data provided on ILFLS. Additionally, if you are planning on purchasing foreclosure property as an investment to buy and hold aka rent out, make sure you contact the HOA and ask if they allow rentals. This question is extremely important, as it basically makes or breaks your exit strategy.
Expanding Buyer Options
If you have a cash buyer client or you can be a cash buyer investor, get to know the amazing and often overlooked opportunities at foreclosure auction sales. This way of acquiring property may worry some folks that don’t know how foreclosure auctions work, which is exactly why gold mine deals still exist. Recently I met a new ILFLS client that told me she had a cash buyer but didn’t think foreclosure auctions were a “legit” way to purchase. She had recently listened to a webinar from a local real estate “guru” that outwardly declared foreclosure auctions as it can be risky.
- First and foremost, it is definitely a legitimate way to purchase properties, especially considering sales are mostly conducted by the county sheriff’s office.
- As for risks, I think it’s fair to say that purchasing anything below market value comes with the notion of being risky. As such, it is completely based on a risk-reward ratio driven decision that can only be made through knowing the correct information. If you’re buying a car at a good price, you’ll want to know the ownership history. If you’re buying discounted food, you’ll want to factor in the expiration date and the overall condition to make a decision. The same goes with purchasing at foreclosure auctions. With the right research and guidance, purchasing at a foreclosure auction can be an absolutely amazing deal, as many liens and some taxes are wiped out at the sale. Since ILFLS shows when properties are up for auction, if you have a cash buyer or you can be one yourself, then definitely scroll through the listings. Plus, full-service auction platforms like Probidder covers everything from the data analysis to the bidding and buying process!