So you say you really want to buy a foreclosure -- or a short sale -- but do you really know that that means? In this episode, we take the topic of buying distressed properties head-on and reveal the reality (and oftentimes... futility) of making one of these transactions. Our guest today is Eric Petz, a long-time, incredibly successful short sale negotiator. He takes us step-by-step through the terminology of distressed properties (Notice of Defaults, Trustee Sales) and tells us how each of these apply to the foreclosure process.
We then take a short side-trip to the courthouse steps where he let's us know how developers and investors make sure you never come back to future auctions by, believe it or not, helping you win your bid -- but making sure you lose a whole lot more. They want to make sure you not only lose your appetite for foreclosures, but that you never, ever want to pull your chair up to the table for a meal again.
The topic then turns to the multitude of people that approach Eric and Tom about "buying a foreclosure" without ever considering how that's a next-to-impossible thing to do. Just because someone has missed a few payments and the home has received a Notice Of Default, they almost never have any desire to sell -- and that's what you really need to get the home in the end.
We then talk with Eric about the best strategy for buying a short-sale. Eric let's us know that there are two things that his all balances on -- close ability of the buyer and how much the listing agent is going to make from the deal. He discusses a couple of strategies for maximizing these priorities and potentially getting the job done.
We then close up with a conversation about how to figure out purchase price for the short sale -- here's a hint, it ain't full price..
Eric has so much experience and success in this field that every bit of advice is like a masterclass in how to buy a short sale. For anyone who has ever thought about investing in real estate — or just about how to purchase a short sale, this episode is a definite must listen! Please let us know what you think of it in the comments!
If you’d like to talk to Eric, drop us a line on our Contact Page and we’ll get him in touch with you.