Expert: Dick Dennis - 11/8/2005

Question
Hey Dick, I am very interested to begin investing in real estate. I am interested in pre-foreclosures. Can you give me any advice as to where I can look to find these? Also, where can I find a Lis Pendens list? Does "no money down" really work?  What is an ideal situation for a no money down purchase? How can I work out little money down purchases? I want to know as much as possible to start doing this relatively soon and any help you can give me would be greatly appreciated. Thank-you

Answer
Depends where you live, Niall, but I suggest you take your time because the market is going to come down where you may see a bigger supply of houses in the foreclosure process. In the meantime, I suggest you get your feet wet (this is going to be a full-time operation if you want to do it right) by checking the list of existing homes in foreclosure in your area. There are services available (again, depends where you live) that offer a list of properties that are falling into foreclosure. These services are not free.

Before you do that, however, you need to become very knowledgeable in the values of houses and properties in general. That means you are going to play the schmooze and look at properties to become familiar with them all. How are you going to be able to talk to someone who owns a house in the foreclosure process and know it is a good deal for you if you don't know for sure that property is one?

Once you are familiar, then you will set up a marketing program that will allow you to contact these different unfortunates. Some states, like here in California, have laws against people who offer themselves out as problem solvers without licenses.

No money down means no money OF YOUR OWN! If you have friends or family who are willing to join you in this investing venture, they put up the money and you put up the sweat and knowledge. By the way, forget about getting a list of lis pendens. That comes with the job. You will find out later as you progress.

As you take each step, get back to me and I will suggest what you should be doing next.

Or, you can go buy a book or two that tells all about it. There are a few that are worthwhile. Or you can look in the library to see which books are best for you.

This is not an overnight thing. You MUST have patience and you MUST have diligence. You WILL have much competition form those who think they know how to do it. If you do not have patience and diligence you will fall by the wayside along with about 90% of those out there doing the same thing.

I do you wish you well.

Dick Dennis        dixiedee13@aol.com