Andrew Molz

Everyone it seems now a days is getting involved in investment purchases in the housing market. Purchasing a home is great for your portfolio due to the fact that it's an appreciating tangible asset. But there's a couple of things you need to seriously consider first before even beginning.

1.) Are you in this for the long term or the short term?

2.) Are you going to be buying & selling, or renting?

I personally don't mess with the rental properties due to the time consumption and constant headaches involved with repairs, evictions etc. If you hire a property manager then you can side step a lot of these problems; but you also forfeit a lot of the monthly profit. If you're only renting so that you do not have to pay your capital gains tax and to build equity, then the monthly profits really don't matter. This is why it really just depends on which route you are going. I could really go into about 10 different blogs on what I just mentioned but I am trying to stay on track with finding a HUD Foreclosure.

Now, being that I myself reside in Plano, TX, of course I look for deals close by. The North Dallas area is a great place for HUD's; typically because of the equity you can have going in to the deal. I strongly feel that you make the MOST money on the deal you get. Of course you make some money throughout the process esp. if you have a great contractor. On a side not, if anyone needs a referral for an excellent AFFORDABLE contractor in the Dallas area, contact me. Below is an example of his before/after work on one my properties he's doing for me in Irving.

These are the steps I typically take when looking for the good HUD deals! This is my tried and true process below, so I strongly urge you to read it and try applying it.

Step 1: Open up 2 Browser Windows (If you have access to Realtor information from your local MLS, then open 3 windows)

Step 2: In Window 1, open up this website: https://www.bidselect.com/Search?p_build_page=PSPropertySearchCriteria&p_process_page=PSPropertySearchCriteria&p_client_id=0&p_form_action=SEARCH&p_plum=&p_last_access_time=2010-08-27 14:32:11.432&BDSOWASP_CSRFTKN=null

Step 3: In Window 2, open up your counties local appraisal district information. For Dallas, this is the website: http://www.dallascad.org/SearchAddr.aspx

Step 4: Go back to Window 1 (BidSelect). Now, ONLY check the box that says Govt Foreclosures. Next, select the State and then the City that you wish to search. Now, set the Price that you do not wish to exceed. I usually set mine at a minimum of $75K and a maximum of $100K because those are the prices I like to stay in right now. Now select the number of Beds and Baths you are wanting to look for. Again, I usually set mine at 3 bedrooms 2 bathrooms because it's a safe number and appeals to a larger demographic. Under Property Type select Single Family Residential & Under Property Status select EXCLUDE CONTRACT PENDING (you don't want properties that already have contracts on them appearing in your search, you want active homes you have a chance at bidding on). Next, under Government Foreclosure Programs select HUD - General. Now click SEARCH.

Step 5: Now look through the properties and see which ones you like and would be willing to get involved with. Some need WAY more work than others and are reflective in the condition of the property. Another cool part about BidSelect is that you can click on View Property Condition Report and see what the HUD Home Inspector said about the property in his 15 to 30 page report.

Step 6: Okay, now you have a group of homes you're interested in, you want to start running the addresses through your counties local appraisal district website so you can see the Tax Value of the home. If the home is below the tax value enough then you have found a possible winner. I usually look for homes that are selling at least $30K below the tax value.

Step 7: Now if you have found some properties that you're interested in, you will have the opportunity to bid on them through BidSelect's website only. Your agent's broker must be a HUD listed broker for them to be able to make bids on your behalf. I will not make a bid for anyone unless I have either a Pre-Approval letter from their lender or a Verification of Funds letter from their bank. Not only that, but you truly need an agent who has dealt with these before. I will say this again, YOU NEED A REALTOR WHO HAS DONE THIS BEFORE!!! If your Realtor has not done this before, you run a HIGH RISK of losing on the bid, losing your earnest money and wasting A LOT of time! I am dead serious about this everybody. This is a very complicated procedure and time sensitive as well (you have 3 days to deliver a check and signed contract to the BidSelect office located in Addison Circle).

Now if you are a Realtor or have access to the MLS, you can run the properties through a Comparative Market Analysis and see what the market value is of the property. Tax Values are usually always off. Sometimes they're higher, sometimes they're lower. For the BEST estimate of what the property could sell for once remodeled, you need the Comp #'s. Again everyone, this is my process that I go through when I am looking through HUD's. Everyone has their own strategy, I am simply sharing mine and what's worked for me. If you would like me to assist you in Plano, TX, contact me at the number: 972-424-5577 and I will be happy to represent you.

Do you live in Plano, TX?

-Check

Do you currently have your home listed for sale, or WORSE; are you selling it yourself with NO representation?

-Check

Okay, if you answered yes to either of these questions, I have some information for you. If you are currently selling your home in Plano, TX and your Realtor "seems" to be doing their job, assess them! Chances are they're doing a great job, but they could be doing very little to ensure your home is selling. You may know me as the "Your home sold in 60 days, or I sell it for FREE!" guy in Plano. I know my market and I understand the psychology of both the buyer and the seller. Now, this may ruffle some Realtors feathers, but we all know what I'm getting at. Some Realtors just stick a sign in the front yard and off, never to be heard from. But when you call and ask them whats going on with the home, they list off all the things they are doing. If your Realtor isn't doing some of these things I list, you may need to give me a call at the end of your listing agreement.

• Feedback - Every Realtor should be giving you feedback on your home and what the buyers are saying about it. This should be a bi-weekly report given.
• Marketing- Is your home even being marketed correctly? As a former Marketing Director in health care, I do know a bit about marketing! Your home should be marketed, online, print & word of mouth. Online advertisement, "Just Listed" postcards mailed out to the subdivision, hosting a Realtors open house to have some Realtors come through the home. Sometimes, if the house has become a stale listing (sitting on the market for an extended period of time), it's good to hold some open house events and regenerate interest and traffic in the home.
• Flyer Box- This is the littlest thing that drives me nuts sometimes! It is NOT hard to keep a flyer box full. Your Realtor should give you a stack of extras and have them to leave with you or refill them themselves.
• Price Reduction Plan - Sorry, but no one ever wants to hear this one! If you have a Realtor that is just leaving your unsold home at it's current price over the course of more than 3 months, then that is no good. True, the home could just not be selling, but the market dictates what your home's price should be. Sometimes, the way your home is described on the MLS will almost always result in a lower offer. This is something else that drives me nuts! When a Realtor says in the DESCRIPTION, "No reasonable offers refused", "Must sell quickly", "Motivated sellers" etc., all that says to me, is "DON'T WORRY ABOUT WHAT THE LIST PRICE IS, WE'LL ACCEPT ALMOST ANYTHING!". Wording like that in your home's marketing is detrimental to getting you TOP dollar for your home. Which is hopefully why you hired whoever you did to represent you. If you're priced out of the market, you probably won't sell. If you're priced competitively, then your home should sell. Sometimes when you price below the entire subdivision, you get the most interest and generate a higher SOLD price than you were originally considering. You need to trust in your Realtor and their professional ability. If you're not happy with your Realtor, then wait it out and see at the culmination of your listing agreement if anything positive has occurred. If you are dealing with a time crunch and need to be sold, then you need to be a little bit more proactive. Foreclosure may be looming if you do not voice your concerns! You should probably ask the Realtor to let you out of your listing agreement or go to their Broker.

If you are reading this blog right now, you may be unhappy with your current Realtor. I'm not suggesting anything that would undermine what they are doing; but at the least, bring your concerns to their attention before taking any kind of action. I am a Plano Realtor and an Investor myself, so I do know the market and what trends are occurring. Go to my website: www.OneClickSold.com and fill out my contact form, or call me. I'd be happy to assist you and look at your home.

Hello readers, I just wanted to briefly mention that if you are looking for a home in Plano, TX, then I have something for you! Just contact me via my phone, www.OneClickSold.com or e-mail and I will personally build you a free website that will only bring you the listings you're looking for. So, instead of searching through listing after listing trying to find a 3/2 with a pool, I can direct every listing straight to your website. Not only that, but as new listings become available, I will setup your website so that you will be the 1st to know. A lot of times in real estate, if you're not fast, you're last. Not anymore! My website will ensure that you always know first and are ready by 8am if it is "the one". Below is a sample of a Gateway Website I will build for you:

Real Estate in Plano is difficult enough to navigate with the abundance of websites around. So take these 3 steps to simplify your search:

1. You have to get in touch with me first. (If I don't who you are or what you're looking for, it's impossible to help you.)
2. Tell me EXACTLY what you're looking for (City, Beds, Baths, Garage, Pool? Yard? Subdivision? School District?).
3. Have a valid email address that I can send the NEW listings to as soon as they come on the market (Usually around 4:30am-6:30am updated daily.)

After you do the 3 steps above, your search is over! Now you will ALWAYS be the first to be in the know. So whether or not you're an early bird or a night owl, you'll still get the worm.