When housing inventory is low, where do you go? Foreclosure rates are down, short sales are a hassle, and the open housing market has barely any sellers—is there a better way to find deals? Yes! Enter real estate receivership—the hidden housing inventory that our own James Dainard has been using for years to get better deals than what’s on the market. How do they work, and what’s behind these discounted deals?
Attorney Jake Flothe works with receiverships daily and has seen the inside and out of these transactions that most real estate investors know nothing about. In short, receivership is when a court-appointed receiver takes control of a property in order to sell it to pay back creditors on the borrower’s behalf. This alternative to foreclosure and bankruptcy helps many real estate investors and everyday Americans escape a financial bind and can bring better properties to your investment portfolio.
Jake gets into the nitty gritty of why someone would go into receivership, how to finance these discounted deals, the vast benefits of receivership over foreclosure or short sales, what the bidding and buying process looks like, and the one clause that could kick you out of an amazing receivership deal.
Dave:
Hey everyone, it’s Dave. Welcome to On the Market. Today I’m joined by James Dard. And James, thank goodness you’re here today because we are getting into a part of the real estate investing world that I truly know nothing about. We’re going to be talking about Receiverships, and you were really excited to talk about this topic. Why do you think this is important for our audience to know
James:
Right now? The deal flow is really hard to find, and as investors, we have to shake every branch right now to find that deal and what we are seeing, or at least what we’ve been seeing, is we’re buying a lot more product that’s from investors that’s half stabilized or half renovated or investment deal that went bad and the lenders are trying to…