Getting the right house flip info is essential for profits. A foreclosure and tax lien flips involve researching properties that have entered the foreclosure process. This can be a time consuming process where you need to research titles at the county land recorder's office to determine what types of encumbrances are on the land. While many properties are sold at auction, the best deals are had when you solicit a sale from the property owner prior to the house foreclosure finalization. The reason is, the most banks start auction prices at near fair market value in an attempt to recuperate losses. While tax lien auctions must start for the value of the delinquent tax lien, these auctions have become very popular and competitive.
The process for both a foreclosure and tax lien is similar. Both require locating the information. While there are third-party lists you can purchase or subscribe to, these often have outdated information and are considered by many a waste of time and money. Many county recorder's offices publish a quarterly or annual list of liens. Foreclosures are more difficult to research as the banks maintain confidential records until they are close to being taken over. You may also find out via word-of-mouth who has lost a job and is having financial difficulties. Once you have the information, send a letter to the owner, offering to take over the mortgage and provide the owner with a small amount of cash to get relocated and start over. Remember that these are people who are about to lose their biggest assets so tact and diligence is required. Most homes are in desperate need of repair when taken over in this fashion, but if you are able to get them well below market value, flipping a house for a profit is still possible without putting any work into them.
