Foreclosure bus tours are popping up all over the US, especially concentrated in the hardest hit areas like Florida, California and Nevada. The tours offer investors an excellent method to source foreclosed properties and to meet other real estate investors.
Maximizing a Foreclosure Bus Tour
Intelligent investors should definitely consider doing at least one foreclosure bus tour for the experience. While the properties may not be the perfect investments and the competition is obviously high given the fact that competitors sit in every seat on the bus, a tour offers something to all types of investors.
Shop around for bus tours. While this is not a huge industry yet, use the web to find the best tours and make sure to get testimonials and feedback. Don’t expect to go on the tour and find the perfect property. These tours run frequently and given the sheer number of investors looking at the properties, the best properties go quickly, while the worse remain in the pool to be overlooked by other investors.
Do not forget to network. The value of the bus tour will come in meeting other real estate investors and discussing real estate investments. Novice investors can get some hands on tips on how to evaluate a real estate investment property and more experienced investors might be able to find investment partners or future investment sources.
Investors should make sure they have a camera, notepad/pen, an investment checklist (current rents, neighborhood outlook, etc), and a list of key items to review inside the property (i.e., sound foundation, repair needs, deferred maintenance items, big ticket item needs).
Foreclosure Bus Tour Watch-outs
Avoid getting sold on the bus tour. The tour will inevitably be filled with realtors and other real estate product sales people attempting to sell everything from brokerage services to foreclosure seminars. A novice could see their $40 bus tour investment balloon to $1,000+ of classes and products that may not enhance their real estate business.
Also, avoid rushing through an investment analysis. Tours promote group think and investors often get caught up in what other people think of a property. Don’t trust another tour member’s analysis of the market and the property. Take copious notes and complete a thorough analysis before deciding to invest in any property.
Foreclosure tours are a must for every novice investor. Don’t expect to find the perfect investment property, but be open to meeting new people and learning more about real estate investing.