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Zombie Foreclosures on Rise

Reference: https://www.attomdata.com/news/most-recent/attom-q2-2022-vacant-property-and-zombie-foreclosure-report/

Vacant properties are an excellent target for acquiring properties. So are foreclosures. Imagine how nice it would be to find vacant properties that are already in the foreclosure process!

This article from Attom, a curator of nationwide real estate data, talks about the rise in the Zombie (vacant) foreclosure market. It lists several counties (Cuyahoga and Pinellas among them) that currently have over 500 vacant (“Zombie”) foreclosures. This provides a great opportunity for real estate investors as well as note investors.

The main takeaway for the average note investor is that foreclosures are on the rise, continuing to rebound from the COVID moratoriums, and that non-performing notes and REOs will continue to increase. Secondary opportunities exist to locate these properties before they go to trustee or lender-initiated sale. Lenders with toxic assets could be willing to make deals on these properties. Also, enterprising investors who want to create their own notes can locate the vacated owners via skip tracing to acquire the unwanted properties and then sell them with seller financing. In fact, our customers Nick Legamaro and Eric Sage run a weekly investor call hosted on their Facebook page, Creative Dealmaker, that shows you how to do this using none of your own money. They often use NoteUnlimited on these calls to demonstrate the profitability of these creative deals. Basically, you create two notes, sell off the first position note to cover all your expenses (and sometimes make an upfront profit), and keep the second note for passive income. That is an ingenious system for creating notes!

Once you have a target property in mind, you can use the resources in NoteUnlimited to effortlessly collect valuable information about the target property. You can find out sales comps, rental comps, and title information at the push of a button:

If you like the look of the property, you can also gather information about the neighborhood that us downloaded automatically:

You can even select our Property Details page to download title company data for the house, often including ownership, sales, and loan information:

So, as we’ve noted in other recent posts, the wind may be shifting from a performing notes environment to a season of abundance in non-performing assets. There are opportunities abounding in both arenas and NoteUnlimited is here to help you capitalize by speeding up your due diligence and keeping you from making uninformed decisions. We would love to hear from you on what your favorite features are and what you would like to see added to make your life even easier. Feel free to comment below or send an email to Gary@noteunlimited.com.

Happy prospecting!

Gary Peyrot
aka “Professor Cashflow”
818.927.2897

Bio:
Gary Peyrot is an active note investor and an avid user of the NoteUnlimited note management application. He specialized in bringing performing notes directly from the originators to the note buying community. He also works with private investors who want to deploy their assets in secured real estate investments without having to swing a hammer or deal with tenants, termites, toilets, and torts. He contributes his expertise by blogging for Note Unlimited and can be reached directly at gary@passivemonthlyprofits.com.

Get a lifetime 10% discount on your NoteUnlimited subscription with Gary’s discount code: Notes10GP

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