5/14/24 I attended the Midlands Real Estate Association meeting in the basement of the Lexington County Admin building. Tony Youngs was the speaker. He had written a book several years ago and bought over 200 houses. He said he plots a course of all the foreclosures in the area. He then likes to knock on the doors and look for homes with no pride of ownership and no for sale sign.
He would sometimes look up the owner’s information on Propstream. He does not say “Hey, I see you are in foreclosure.” He simply knocks on the door and says, “I LOOOOOOVVVVVVE Your house! Would you be interested in selling it?
He purchases them by catching them up on payments and then buying them “Subject Too” where he just takes over the payments.
He suggested NOT using a complicated 8-page contract with people in foreclosure. They will not sign it because they are already skittish and highly alert. Use a simple contract that they are not afraid of signing.
After the house is stabilized, then, he will do a cashout refinance and all that money is tax-free!
He recommended that we say, “Hi, I’m Matt. I’m interested in buying a home in the neighborhood.”
He even said he would sometimes go the extra mile and cut the grass during probable.
I believe after we settle on the closing with 605 Piccadilly, I will start to pursue foreclosures as a way to take down houses.