Heather Seitz

Depending on when it was sold, you can go to http://www.bcpa.net and look up the property records. This can take a few weeks to update.

To find out if a property is still available, if it's listed through the MLS, you can contact any Realtor to pull it up for you by address or MLS number. Let me know if you need me to pull something up for you.

Heather Seitz
heather@yamon.net
(561) 459-9203 - Wed Feb 20 2008, 12:28

Foreclosure can be a great opportunity. You just simply need to know what you're buying.

There are essentially 4 stages of foreclosure: "pre" preforeclosure, Preforeclosure, foreclosure, and REO

- "Pre" Pre-foreclosure is before the homeowner has formally received notification that the process has started. In theory, this can be anyone that's about to start missing payments or anyone that is behind on payments and that the bank has not started the formal process. This may range a few weeks to a year or more. We have one client where the bank took 14 months to start the formal process. Certainly, this is not the norm.

- Pre-foreclosure: This is when the formal process has been started by the lender. This is the period from which the lender has notified the homeowner up until the actual sale. Again, this can be very quick or can be drawn out for a very long time. Attorneys fees, late payments and interest add up quickly in this phase. In this stage, it is most likely that a lender will accept a short sale on the property.

- Foreclosure: We refer to this as the actual sale. Depending on where you are looking to buy, there may or may not be a redemption period during which the owner can reclaim his/her property by paying off the debt, fees, etc. You will typically need to pay cash the day of the sale here. The bank is most likely in attendance to protect their interests and set the starting bid.

- REO: If the property does not sell at the actual foreclosure sale, then it becomes an REO (Real Estate Owned Property). The bank now owns the property and has to find an agent to put it on the market.

At each phase, you can find great deals potentially. You just need to know what to look for, what considerations to take into account, and potential pitfalls.

The inspection issue has been discussed in previous answers. I would always go with an inspection even if you're not going for a foreclosure. This is the best way to protect yourself. But typically, the inspection on a foreclosure is not going to help you get any money credited back or any repairs done. Most properties are as-is period. If you're getting it prior to the sale, the owner probably doesn't have the money to repair items. After that, the bank is not going to repair items for you!

I know that's probably a long answer, but I hope it helps!

Heather Seitz
(561) 459-9203
heather@yamon.net - Thu Feb 14 2008, 21:22

yes, it is a good time to buy in Florida. You can get a great deal on many units. The one recommendation I would give you is to look in a place like Miami where there are a lot of tourists. Then, look for a building that has a rental management division in house. Then, you can make money while you're not here and have virtually no management headaches and hassles.

As long as the property can support the price, it's probably not a bad deal. You would of course negotiate the price no matter what.

Another thing to consider... the strength of the Euro versus the dollar. No one can predict what is going to happen in the next 12-24-36 months in real estate. It's also impossible to predict what will happen with the Euro/Dollar. Think about this... What if prices actually do go down another 5-10%? But what if the Euro goes from 1.46 to 1.10 in relation to the dollar. You still wind up ahead of the game. And if you DO buy below market value today, you've mitigated that risk some more.

You just want to make sure you choose the right building in the right location and negotiate a great deal that works TODAY. Let me know if you have any questions and I'd be happy to help you out. This is NOT a time for quick turn.

Heather Seitz
(561) 459-9203
heather@performanceteamkw.com - Wed Feb 13 2008, 17:19

You definitely want to talk to a CPA (and probably attorney) depending on what you're looking to do, if you're purchasing it alone or with someone else, and if you're obtaining conventional financing.

There is the actual ownership - which most accountants and CPAs often recommend holding title in an LLC to limit your personal liability.

Then, there is the management. Many will recommend a separate S Corporation for that. However, since you are not a US citizen, you'll want to look at the options and if they would simply recommend running everything through the LLC.

My CPA just set up an LLC for a friend of mine in El Salvador for this very purpose. But there are other members in his company, so I wouldn't want to tell you to do the exact same thing. You'll also want to seek the advice of an attorney because there are certain things you'll need to consider within your operating agreement as a foreign investor. If you do decide to look at this option further, I can put you in touch with both a top notch attorney and CPA.

Heather Seitz
(561) 459-9203
heather@performanceteamkw.com - Wed Feb 13 2008, 16:24

My background is in investing (I was a full time investor before becoming a Realtor). We ARE in a buyer's market which means that it's a great time to buy... It also makes it difficult to know exactly where to come in. You don't want to come in too high and miss out on equity you could have bought, but you also don't want to kill the negotiations if you do find the perfect home.

I work with buyers all over the country on deals and this is my recommendation.
1. Follow the advice of all of the other answers below (Know the real value, know the comps, now what you are comfortable paying based on all of the factors)
2. Then, this is where I differ a little - and it may also be because I own several properties in the Orlando area and am intimately familiar with what's going on there. But I would come in a lot lower than what you're willing to pay. All you want to do is engage the seller and you never know what their situation is. For example, I have a someone that owes $300,000 on a property and would be willing to take a substantial amount of money to the closing table to get out of it or to discuss a short sale with the bank.

In addition, I am working with someone else in another state as a referral agent/consultant and their top price is $2.25M on a property. We came in under $2M to give us a good amount of wiggle room.

DISCLAIMER: If the property is already priced at the bottom of the market and you fall in love with it and there's good activity, you may not want to "play the game" quite so aggressively because properties priced already well below other comparable properties still are moving - even in Orlando!

Let me know if you have any questions about specific areas in Orlando. - Wed Feb 13 2008, 15:43