I’m going to surprise you today.
You already know that foreclosure rates are sky high for single family homes all over the country. This is no secret.
Here’s the surprise. What you don’t know is that multi-family income properties are ALSO being lost to foreclosure. The crazy thing is that many of these distressed income properties are still cash flowing at the time the bank takes them back! Why is this? Well, many investors are in such bad situations that they are taking the rents from their cash flowing properties and living on those rents instead of making their monthly mortgage payments. Sad, but true.
How do you find these cash flowing diamonds in the rough?
I have a handful of techniques for finding these properties, but here are two of my favorites.
- Find people who have owned multi-family properties for 5 or more years. You will find that most owners in this group are sick and tired of property management. Once you speak to these owners and show them how you can continue to give them cash flow without property ownership, the sale is made!
- Find the REO lists at banks and mortgage companies. Banks DO NOT want more bad debt and foreclosed homes on their books. Check out some of my past blog posts on how to talk to the banks about the income properties on their REO lists.
One of the most common questions I get is, “OK, I’ve found a bunch of promising deals, but how do I evaluate them to make sure they are great deals?”
In just a few days, I will be teaching a free Webinar where I will teach how to EVALUATE these properties you have found. I want to make sure you don’t waste any time, and you only spend time on the golden properties, not the duds. I use a simple formula to evaluate income and multi-family properties called the “2%/ 20% / $100″. I’ll be diving into this formula on the Webinar. Like I said, the Webinar is free. Click here to register for “The Quick Cash Flow Formula: 2%/20%/$100″ Webinar!
