Posted on Aug 30, 2018 by Curtis Roddy
(Part 1 of the series “So You Want to Start Investing in Texas Foreclosures”)
Think you might want to enter the Texas foreclosure market? Here are some key things to know before you head to the auction.
As the son of George Roddy—considered by many to be the pioneer of the Texas foreclosure market—I’ve been learning about this topic since as long as I can remember.
The most common question I get asked is, Should I invest in the foreclosure market? With very few exceptions, my answer is always: Absolutely! But there are a few key things to keep in mind if you want to do well with distressed-debt properties, nose out the competition, and avoid losses.
I remember one thing Dad always said: “Don’t pay retail for real estate.” And that philosophy really rings true when we look at the foreclosure market. The fact, is foreclosure investing can require very little capital—in some cases, you don’t have to pay anything. And the more capital you have to invest, the more deals you can evaluate and the less creative you have to be with financing.
But that doesn’t mean it’s risk-free. I remember something a friend told when she was shopping at a bargain big-box store: “You can go broke saving money!” What I’m getting at is, all investment carries risk. So you want to make sure you’re prepared with the right information.
To help investors start out on the right footing, we’ve developed the Roddy 3-Step Plan for Investing in Foreclosure Properties. In future installments of this blog series, you’ll learn about each step in detail. But for now, let’s first answer that commonly asked question,
Why invest in distressed-debt properties?
There are many benefits to doing this, but here are 3 key reasons to enter the foreclosure market, particularly in Texas.
Benefit #1: Foreclosure investing is less stressful than conventional real estate investing.
Buying or selling a house on the conventional market can be stressful, because there can be a lot of equity tied up in a property for a a long time. On the other hand, distressed-debt investing usually is less competitive, provides a bigger profit margin, and takes less time to wrap up a deal. (In Texas, the process to own is 21 days.)
Benefit #2: Buying a distressed-debt property is ideal for the first-time investor.
Because buying distressed-debt property often requires less capital than buying conventional real estate properties, it offers great opportunities for people who have never owned property before or may not have much capital to invest.
Benefit #3: Foreclosure investing works with your lifestyle.
You may wonder, what kind of person invests in foreclosed properties? Well, just about anyone who has a dream of making money in the real estate market! Because distressed-debt investing offers more flexibility than most other types of real-estate investing, investors run the gamut from being “weekend warriors” who work around a full-time job to those who have made foreclosure investing a full-time career.
What do I need to know if I want to invest in Texas properties?
As experts in the Texas foreclosure market, here are some key facts to keep in mind about investing in the Lone Star State:
All 254 counties hold foreclosure auctions
Auctions occur on the first Tuesday of every month
Auctions are never canceled even for bad weather and holidays
DON’T MISS THE NEXT POSTING OF THE RODDY BLOG: “How to get started with investing in Texas Foreclosures”
File Name Foreclouser
File Name Foreclouser