Summary:
Foreclosure properties can cause a lot of headaches for the average home buyer, but for an investor? That all depends. Bill Hamberg shares his crazy story entering a “Winter Wonderland” house as excessive water damage was actually forming icicles. He also offers realtors and investors first hand advice regarding investing in a foreclosure home. Leigh welcomes Bill Hamberg, who has been in real estate for 13 years and is an investor/agent in Philadelphia.
Please subscribe to this podcast in iTunes or in the Podcasts App on your phone. Never miss a beat from Leigh by visiting The Leigh Brown Experience.
Time Stamped Show Notes:
- 00:21 – Introduction for today’s episode
- 00:38 – Leigh introduces Bill
- 00:53 – Bill and his wife are in their 13th year in real estate
- 01:05 – For the past 11+ years, they’ve been in the REO side
- 02:12 – Bill shares his story of the most recent crazy thing he experienced
- 02:28 – The general public doesn’t understand what a foreclosure is
- 02:47 – Bill had an assignment in Levittown, Pennsylvania
- 03:50 – When Bill visited the property, no one answered the door, but the windows were open
- 04:17 – Bill climbed through the window to make sure that the property was safe
- 04:38 – When Bill got inside, there was a water leaking from the second floor to the first floor
- 05:00 – Bill took a video of the water damage
- 05:24 – Most properties in Pennsylvania have basements
- 05:34 – The water was just accumulating on the first floor
- 06:20 – As Bill walked into the bedrooms, it looked like a winter wonderland as the water that was leaking turned to icicles
- 06:48 – Leigh asked Bill about fungal growth
- 08:03 – When Bill called the water company, already 168K gallons had been used
- 08:35 – Bill shares what will happen with the water bill
- 09:26 – The house needs to be stripped down completely because of the fungal growth
- 10:25 – In Pennsylvania, banks are not allowed to disclose too much information
- 10:42 – Bill understands that consumers need to ask about the issues with the home
- 11:40 – Bill shares about the mortgage and the foreclosure of the house
- 12:19 – The banks are also repairing the house
- 12:44 – Bill’s opinion regarding selling the property as is
- 13:42 – There are good and bad investors
- 14:27 – Bill had an investor for the Levittown house who eventually transformed the house
- 15:20 – Bill shares his advice in regards to purchasing a foreclosure home
- 15:25 – If you’re an investor, you really need to find an investor/real estate agent
- 17:25 – Bill prefers a quick resale value (QRV) over pursuing the after repair value (ARV)
- 18:51 – When you’re bidding on a foreclosure property, you’re bidding against other investors and not the bank
- 20:00 – You have to set good criteria
- 20:58 – Set a price that will attract lots of activity
- 22:15 – Realtors who want to get into the investor side of real estate need to do their research
- 22:57 – If you’re an investor, the first question to ask a real estate agent is, “If I purchase this property how should I cost segregate it?”
- 23:38 – Go to someone who knows what they’re doing
- 23:43 – Take extra classes and find a mentor to be a proficient investor/real estate agent
- 24:15 – What Bill loves about foreclosure homes is that there are no emotions tied to the property and everything is just about numbers
- 24:53 – Reach Bill through his email at bhamberg@pahouselink.com and google “Bill Hamberg”—Bill is on the top 3 results
- 26:35 – Tweet Leigh Brown for your very own crazy story in real estate
3 Key Points
- Being an investor/real estate agent requires thorough study and research to be able to serve your clientele well.
- An advantage of investing in foreclosure homes is that you’re dealing solely with the numbers—not the emotions.
- House pricing won’t always depend on ARV—consider all your factors before sealing a deal.
Credits
