Hidden Problem With FORECLOSURES Nobody Sees Coming!

Key Takeaways

I've been in the real estate business a long time, 30 years, but even I had to question what's really going on here. I'm talking about this house right here behind me. It's a foreclosure. I've been in a lot of foreclosures, but it took me a little bit to find this one. This is a $184,900 foreclosure. It's 1,300 square feet. It's got a concrete drive. It's on a corner lot. It's in Covington, Louisiana, but there's houses just like this all around the country. You can see them at findmyforeclosure.com, or if you have an agent, they can help you buy houses like this. Now, a home like this, I'm going to back up so you can actually see. You can get an FHA loan on this. You can get a USDA loan on this. You can get a conventional loan. USDA, you don't need any money down to buy this house. It's a little raised house on a corner lot, plus it's got a storage building. FHA, you only need 3 and 1/2% conventional, you only need 5% down. The seller, in this case, is the bank. Can pay your closing costs. Now, I'm going to walk you around and through it, and I'm going to show you a couple of things that I had to really look for because you can see it's on a raised crawl space, as they call it. 3 or 4 feet off the ground. We're in Louisiana. It's flat down here. A lot of the homes are built on slabs of concrete. This one, however, is raised. Now, it's not just raised. There's something that I want you to see. You can visually see it's on a It's a raised house, right? But here's what's crazy cool. If you look real close, not only is it raised, it's on an absolute slab block, if you will. Like look at the poured concrete. And up underneath there is a complete slab of concrete. They poured a slab of concrete, then actually built concrete walls, and put breather holes, weep holes, whatever you want to call them, basically, so the house will breathe up underneath. Now, here's what's really I'm going to walk around here. Hang in here with me. What's really cool, and I'll show you here in just a second about this house, is that it looks as though everything on the home like you got shade trees on a corner lot and like I mentioned you can buy the house like this as seller will pay the closing cost. You're looking at the house but what really surprised me, let's take a look on the inside. You see as I mentioned I've been in the real estate business for a long time and looking at this house from the outside I thought wow it's a cool looking house. It's a It's in good shape. There's a little bit of Look, see that right there? FHA appraiser will look for tape. There's a little bit of rotten wood they're going to require that to be fixed. That's easily done but little things like that will prevent it from getting a FHA or USDA loan but it can be done. So always tell banks man have these houses inspected if you're banker mortgage company you hold these properties. Look, big living room, nice. The only downfall is I'm not a fan of 8-ft ceilings but look if it's your first house dude, do it. I wouldn't hesitate to buy this house. It's got a big front porch, it's got windows, it's got a big open kitchen, it's got a utility room. But here's as I had to walk through the house got recessed lightings. Here's something that I that that kind of struck me and I'll share it with you why this is not a stick built house. This is a factory built home. And with the new road home and all of the things that are changing right now you're going to see more homes like this being built in a factory and literally trucked and put on a lot cuz they can build them and put them up literally within two to three months. Look at things like this. See that wall? That wall is wide. You very seldom see walls that wide. That means that when you look down the hall this wall is a load bearing wall. This wall was literally part of the structure that came in on a truck and this whole section came in on a truck. This section I'm walking in came in on a truck. So look with me. This section was on a truck. This section was on a truck. That means that this whole living room literally was on a truck. Bear with me here on the camera. So, you got bedroom here, which is nice. Three bedrooms, two baths. Everything's really nice. Here was the telltale. And I tell everybody, look for signs, right? My telltales I've been in the real estate business a long time, and I look for stuff like this. That's not sheetrock. I look at the seams. That's not what they do on stick-built houses. But, this one answered my question. There's a sticker right here, and it says, "This modular structure has been inspected." Modular, meaning that it had wheels on it. Like, it was brought in with wheels. But, here's the ultimate question. I walk in all these houses, I see all these homes. Would you buy this? Would you live in this house? I I see a lot of people like Let me tell you, this home's been here for a long time. This home has been through hurricanes, and storms, and tornadoes, and it's still standing. Like, there's not a shingle missing on the house. Look. Walk-in closet, potty closet, 42-in vanities, big shower. Three bedroom, two bath. Another bedroom here. Big windows. Full bath there. Like, nice little floor plan, right? First-time home So, here's what happens. If you make like 60, 70 thousand dollars, you can easily get approved to buy a house like this with a USDA loan. There's homes like this all around the country. You can see them at findmyforeclosure.com. That is a paid site. I partner with those people. They have an incredible site. They've been in business for more than 20 years. If you want to see foreclosures, or if you need help getting approved for a loan to buy a house like this. I have so many people reach out to me all the time. I have people say, "Man, my dad just said, 'I need to contact you.'" My mom just said, "I need to contact you." First-time home buyers deserve a chance, and you deserve an opportunity. So many people think, "Well, I'm just going to save my money, Wayne." Well, here's what happens. You have to understand this. Homes appreciate in value on average around 4%. So, a $200,000 house that you buy right now for $200,000, if it appreciates 4%, right? What's 2 * 4? It's 8. That house is worth 208 next year. And then if it appreciates another 4%, then you have to take the 208,000, multiply that times 4%. And then multiply that next figure times 4%. It's called compound interest and what happens after 4 or 5 years? I tell people this because if you're making 65 plus thousand dollars a year and you're renting, you reserve the right and you should talk with someone about getting approved. Now, listen, you you got to have substantial income to be able to cover the mortgage payment cuz a mortgage payment on something just like this house right now at $184,900 is going to run you about $1,500 a month. Now, that's taxes, insurance, everything and out the door, but that does vary depending on where you live because in some places where you live, your payment can be detrimental. And here's why, because taxes in some areas are crazy. Look at New Jersey, they charge you 14% on your property tax. Imagine paying 14% on a $300,000 house. Animals love me, bees love me. You see how expensive that can be. But a house like this, you typically look around the country. Most parts of the country, your your taxes and insurance run about 1 and 1/2% of the value of your home. So, if you purchase a house that's $200,000, for example, this one's 184.9, your taxes on this probably going to run about $2,000 a year. Your insurance on this going to run about $2,000 a year, but all of that is rolled into your mortgage payment. It's called escrow and you pay your mortgage payment. Now, what I just told you and quoted you is a 30-year mortgage, which is fixed. And so, so many people say, "Well, Wayne, I'm waiting for the rates to go down." Listen, the war is happening, rates are going up, inflation is rising, and here's the reason why rates actually go up, because people, investors, get nervous, and they demand for the rate to to increase a little bit. You got bond markets and all of that jargon. But, at the end of the day, it boils down to when there's oil going up, just like we're having right now, inflation goes up, everything goes up, even mortgage rates, they're up. But, you know as well as I do, it's hard to find a 1,300 sq ft house, three bedroom, two full bath. Wherever you're living right now, you're watching this chime in and say, "Man, you can't get that." Or, "I can get that." Or, "That's a good deal." Southern Louisiana, right here. Now, is this house in a flood zone? No, it's not. I say that, but then again, everything and you have to People need to understand I I think there's 26 states that border the ocean. Like, Oregon, Washington, California, like the whole Eastern Seaboard. So, what happens is those areas are in what they consider flood zones, but they're in 5-year plus flood zones, meaning that this property in all of this area that I'm walking around now, it has never flooded in any of our lifetimes. It's never flooded. However, when you get close to a coastline, like Myrtle Beach or even Orlando, if you're within an hour driving distance, you never know when there's going to be rivers and creeks and streams, and people building up property. So, I always just tell folks, when in doubt, get flood insurance on a property. Flood insurance on a house like this is only going to run you about $500 a year. The cool thing is, it's not required, because it's not in a required designated flood zone area. Now, the cool thing, and I point out every feature about a property, cuz I've sold thousands of homes, and I don't say that to brag, just to let you know that what you're learning from me is from real life experience. I've seen just about everything and dealt with just about everything. This is a corner lot right here, storage building. You can see it's got a concrete drive. You could remove this storage building and easily build you a workshop. Are you with me, guys? And so, what's really cool is you At least you do have the storage building. But, this storage building is nice, right? No electricity. It's actually a tough shed, which is a phenomenal product. But, here's what's really cool. It's raised. So, you buy the house, guess what you do? You sell that shed for two grand, $1,800, and then you put a nice workshop right here. It's important to know that houses like this can be purchased. Not only can it be purchased in in in short amount of time, but you get approved. I can't emphasize enough that don't go looking at a house right now the way it is right now. It's hard to get a real estate agent to take their time to show you a house because buying a house is not like buying a car. One of the worst things you could do, the biggest mistakes that people make, is they don't pull your credit. You got to pull your credit. That means you got to look at like myFICO.com. If you need a link to that, I'll put it right here in the description of this video. You can click. You have to pay for it, but here's the difference. When you go to these free sites, they don't give you the TriMerge credit report. You need to see your credit score and your full credit from Experian, Equifax, and TransUnion because mortgage lenders use all three. You don't need to look at one. You're not buying a car, boat, motorhome, or motorcycle. They're going to look at all three. They're going to verify your income. They're going to make sure you've been on your job for at least two years and you have that money that's coming in to be able to substantiate the mortgage payment. But, here's what's really cool. A lot of people say, "Wayne, interest rates are going up just like you said. They're 6.3%." They are. But, the big question is what are you paying in rent? What what is your interest rate that you're paying? You see, when you rent, you get nothing out. I can tell you me personally, I'm 54 years old and I couldn't wait to buy my first house and I was 21 years old when I bought my first house and I lived in that house for 5 years. And I paid $720 a month for 5 years, but when I sold that house, you know what I got out of 5 years? I got $25,000 and I rolled it into my next house. So, when you ride around, you look at houses like you got to start somewhere, right? But when you own that house and you live in it for 5 or 6 years, you come out with 25, 35,000 dollars. People have to understand that the majority of home prices typically go up, but where we see bubbles often times are in places like Florida. We also see places like California and the reason being is because a lot of people buy second homes there. And when the economy tightens up, things start shifting, everybody got on the Airbnb bandwagon, if you will. Everybody's heard of that. That happened in Florida. So, as a result, if you're living in Florida right now, there's pockets of Florida, not all of Florida, but there's pockets of Florida right now where there's for sale signs everywhere and prices are beginning to come down. Well, what happens is you may be living in your home, buying a home, but now's a good time to buy a house in the state of Florida. If you need help, go to contactwayne.com. We can get you approved, we can get you with an agent. We vet the agents, we do all the interviewing and everything for you and it doesn't cost you any money. We're paid when our agents around the country represent you to purchase a house. We get homeowners to pay us. That's why it's always been for years. We basically bring a buyer, you, to their house and we say, "Hey, we want to buy your home. We've got a buyer for you to buy your house." I know you've got it listed with XYZ real estate company, but we're willing to bring it as long as you pay us 2 and 1/2 to 3%. I can tell you I haven't seen a homeowner yet that declined the fact that they could sell their house and still make what they want to make, pay their listing broker and then pay a buyer broker on your behalf. So, look, do yourself a huge favor. If you're watching this, you have a grandkid, you have children, you're a first-time home buyer, you're in your 20s, you've been on your job for a couple of years, you're making 56 plus thousand dollars a year household income. If you're married couple, if you're very serious in your relationship, whatever it may be, if your combined income combined income is 55 to 60 plus thousand dollars a year, a real estate mortgage broker is going to look at your debt-to-income ratio. They're going to look at what you have coming in and what you have going out, and they will approve you based on that. But, you have to understand, you must have a 620 or higher credit score. If you don't have a 620 or higher credit score, you're going to get denied every time. So, you got to look at that. I've got other videos. I'm going to put a link right here so how you can get your credit score bumped up 20-30 points in just a matter of days and weeks, not months and years. Until next time, I'm Wayne Turner. Thank you for watching, and God bless you.