This content was created by Joe Homs 949-625-4533. This content was uploaded by Joe Homs 949-625-4533. This is a YouTube video titled "Foreclosure Tsunami ?! | Are You Prepared?" (created 2022-02-03) featuring Joe Homs (who introduces himself as having over 40 years of experience). The content is an instructional/presentation-style monologue for real estate investors about handling foreclosure leads: how foreclosures work (notice of default/pre-foreclosure), where to find leads (PropertyRadar, PropStream, etc.), ways to contact owners (call, text, knock — mail is discouraged), skip-tracing, buying at courthouse auctions (all-cash requirement in California), risks to watch for (other liens, federal liens), and the California pre-foreclosure timeline (3 months and 21 days after notice of default). He cautions novices, recommends wholesaling as a starting point, and points viewers to related videos and to contact him for help.
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In today's video, we're going to find out whether you're ready or not to deal with a foreclosure lead. Coming up next. Don't expect the foreclosure tsunami. A lot of other YouTubers have been touting this for over a year, but I just don't see this happening. So tsunami or not, I want to go over a few things that you need to know When somebody is facing foreclosure. Before we dive in, I want to welcome all the new faces to the channel. I'm Joe Homs. I have over 40 years experience as a broker, mentor, and investor. I want to help the new and experienced investors, those who want to create the life they've always wanted through real estate. Let's talk about what is a foreclosure. So a foreclosure is when the homeowner stops making their mortgage payment. Usually to the first lender, and then the lender has to do something about it. So they're not, they're not getting their, their monthly payment, so they file what's called a notice of default here in California. That document is a legal document that's recorded at the county recorder's office and becomes public so that everybody in the world knows that this property is in the beginning stages of what's called pre-foreclosure. Where do you find these foreclosure leads? I personally use an app called PropertyRadar, but there's plenty of other apps out there. PropStream. There's honestly, there's many, many. You just Google foreclosure leads and find a reputable source where you get these foreclosures from. And that's where I get my leads. Next question you might ask is how you work these leads. So again, you find the leads and here's your choices. One, you start calling these folks. Sometimes the leads actually come with phone numbers on the apps that I use. If not, you're going to need to skip trace it to find the phone numbers. 2, you can text them. 3, you can actually go out and knock on their door. Okay, so one of those 3 things. You can, you can also mail, but I don't mail because There's so many other competitors out here that are just sending out bulk mail that to me it's a waste of time. When you get junk mail at your house, what do you do with it? You throw it in the trash can. So I like to be more proactive and actually talk to them, text them, or go knock on their door. Okay, so what happens if you have enough funds to go buy the property at the courthouse steps or the court auction? Okay, that's an alternative, but remember here in California You have to have all cash to buy these properties. If you check this video right here, it'll show you an actual auction in process so you can see kind of what goes on. So who should invest in foreclosures? I can tell you this, a novice should not invest in foreclosures. If you are going to start a foreclosure purchasing business, you better know what you're doing. You better know, you know, that you can buy before the courthouse steps. What happens if you buy it at the courthouse steps? If you buy at the courthouse steps, you may never have seen the property before because it's not like the owner is going to, you know, knock on the door and let you come on in and say, hey, I'm buying your house today at foreclosure. Oh yeah, come on in. No, that ain't going to happen. So you have to be way more sophisticated than just a first-timer buying properties at the courthouse steps and make sure that you're purchasing a property that's the first trustee and there is no other liens at all. If it's the first, it's going to wipe everything out except your tax liens and some other liens out there that aren't necessarily wiped out. Any type of federal lien is still on there and you're going to end up paying for it at the end of the day, so make sure you work that into your numbers. So how do you pick up a foreclosure before it goes to the steps? Okay, which is the goal nowadays. You don't want it going to the steps because then you're competing with some other folks. You want to compete directly with that seller. So again, phone calls, emails, texts, knocking on their door— you want to be that person there that they can rely on at the end of the day, that you have the funds to foreclose— I mean, to purchase that property before it goes to the foreclosure steps. There's a lot of opportunity when dealing with the property owner when they're in foreclosure. They have a time frame Okay, they're going to get foreclosed. In California, the time frame is 3 months and 21 days after they file the notice of default. So there's a time frame that they have to do something before the bank actually forecloses on them. If you're new to investing and want to know about the wholesaling process, which is a good place to begin, click on this video right here. I break down everything that you need to know to get started. As always, feel free to reach out. I'm always here to help.
