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Wholesale Real Estate - Wholesaling Pre Foreclosure - What Does Pre Foreclosure Mean on Zillow - YouTube
Channel: Neva Williamson
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Hi, it's Neva.
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Welcome back to the channel.
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Today I am going to explain to you, what does
that mean on Zillow when you see pre-foreclosed
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properties and when you see foreclosed properties?
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The biggest difference between a pre-foreclosed
property and a foreclosed property is who
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is the owner of the property.
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A pre-foreclosure, the owner of the property
is the person that took out a mortgage to
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purchase the property, and a foreclosed property,
the bank, the person that is the lender of
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the loan, is the owner of the property
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Smash that like button to let me know if you
want more videos like this, and if this video
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was helpful to you.
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Banks do not want to own property, so when
they actually take ownership of a property
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that has been foreclosed, they will either
offer the property at auction for sale, or
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they will put it on the market as a bank owned,
or you'll also hear us investors called them
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REOs, and they will be listed by a real estate
agent for the bank.
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We also call pre-foreclosure properties, we
also call them 30, 60, 90 Days Late.
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You hear a lot of us investors say, "Hey,
we're purchasing the 30, 60, 90 Days Late
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list."
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I purchase that list.
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I purchased mine from Citracado, if you're
wondering.
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And so these are people, they are in default
on their mortgage, meaning their payments
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are not current.
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Usually your mortgage is due the first of
the month, so that means these people are
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either 30 days late, 60 days late, 90 days
late, or more.
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If you're looking for a deal for pre-foreclosure,
you need to contact the person that took out
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the mortgage because they still have rights
to the property.
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Have you ever seen or wondered about those
pre-foreclosures or tried to get in to look
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at a pre-foreclosure on Zillow?
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Let me know below.
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Leave it in the comments below.
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Have you ever seen them and wondered, "Hey,
are these great properties that I can get
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a deal on?"
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I'm going to show you how you can find pre-foreclosures
and foreclosed properties on Zillow and show
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you who you need to contact so you can find
out, hey, how can you get in on a possible
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great deal?
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What does pre-foreclosure mean on Zillow?
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That is the question that I am answering today
because a lot of times people call me, they
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see a pre-foreclosure on Zillow, they call
me because I'm a real estate agent and they
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say, "Neva, can you arrange that I can go
and take a look at this property?
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I'm interested in buying it."
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And I have to tell them, "No, this house is
not on the market."
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So I'm going to just show you an example and
walk you through what this means.
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First thing you need to do, you need to go
on Zillow.
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You need to sign in.
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And then I'm just going to pick ... Let's
do Atlanta, Atlanta zip codes, or something
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like that.
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I'm just going to pick a zip code, 30301.
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I'm going to come in here, 30301, and I'm
going to show you how you just do a search
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in your particular area.
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I don't know anything about Atlanta and this
zip code, right?
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So I went in here.
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You see, pre-foreclosures already popping
up because I already have it as a default.
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But what you're going to do is right here,
where this For Sale is, click this to expand,
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and this is foreclosures, right?
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And if you click this question mark, what
does it say?
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"These properties are currently listed for
sale.
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They are owned by a bank or a lender who took
ownership through foreclosure proceedings."
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These are also known as bank owned or real
estate owned, REO, what we call REOs.
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So these houses, the biggest thing is that
the owner ... There's no need for you to negotiate
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anymore with the owner because the owner no
longer owns the house.
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These are bank owned.
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Now this section here, where you have For
Sale right here, these are for sale.
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But see this where these check marks are,
foreclose and pre-foreclosure, these houses
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are not for sale.
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This is just Zillow is pulling the data from
public records and showing you that these
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houses are in foreclosure and in pre-foreclosure
status, right?
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So that's the biggest thing is foreclosure
information and pre-foreclosure information
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is public information.
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A lot of times when I reach out, even to these
owners directly, they're upset.
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They think that maybe I did all this extensive
research to find your contact information,
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and I didn't.
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It's just literally all over the place because
it's just free public information.
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Okay?
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So, biggest thing is foreclosures, these are
bank owned.
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If you're looking for property to buy to wholesale,
and you want to communicate directly with
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the home owner, you don't want to try to go
through the bank, you need to focus on pre-foreclosures,
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okay?
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Pre-foreclosures are, if you look here, it
says, "The lender initiated foreclosure proceedings
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on these properties because the owners were
in default," meaning that they're behind on
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the loan, right?
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They're 30, 60, 90 days or more late.
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"They're in default on their loan obligations.
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Pre-foreclosures also include properties for
which a foreclosure auction is scheduled."
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So the key here is the auction is scheduled,
but it has not taken place, okay, because
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once the auction takes place, then it's either
going to be now a bank owned property, or
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someone purchased it, like a cash buyer purchased
it at auction.
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And so, again, there's no need for you to
communicate with the homeowner because they
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literally have no rights now to the property.
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It also says here, "These properties are not
found on a multiple listing service," so that's
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what I mean, these are not for sale.
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That's what I mean when sometimes people see
these on Zillow and they say, "Oh, let's go
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look at these."
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We cannot just show up to these people's ... This
is like just going to a stranger's house,
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just knocking.
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Just because the house is in pre-foreclosure,
they are not going to be happy to see you,
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okay?
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So, refer to my other videos on marketing
to pre-foreclosures and things like that.
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Here you would just check this box for pre-foreclosures.
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I'm just going to show you an example.
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Okay, so this house, this is in Atlanta.
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This house is in pre-foreclosure.
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You click on it and I'm just going to show
you information.
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This is public information, totally free information
that is saying this house is in pre-foreclosure
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status.
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This information is most likely from a previous
listing when this house was for sale, but
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I'm just going to show you that you could
go through here, and Zillow does have a lot
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of information on the property, bedrooms,
appliances, all this type of stuff, which
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it's pulling from probably their property
records, real estate taxes, all these different
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databases.
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I have no idea where Zillow pulls the data
from, but I'm just guessing it's from tax
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records and previous listings and things like
that.
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That's what I mean.
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You could go down all this info here.
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Also, this house has a foreclosure auction
schedule.
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It even tells you that, look, the owner of
this property has been served a notice of
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sale, okay?
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Property is in Fulton County.
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So that's what I'm saying.
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It tells you the information, loan issued,
190,000 in 2019.
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The loan was issued by Planet Management Groups.
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That's what I'm saying.
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A lot of this stuff is public information,
so you're going to find, when you start, like
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I said, a lot of people that are homeowners
have no idea that this much stuff is out here,
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but it is.
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This is not even where we get to paid services.
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We could get even more stuff that's paid,
but this is completely free information that
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you can use, Zillow.
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And you can calculate, because what I was
going to say here is you can calculate about
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how much equity they have in the house, because
it already told you the loan to value.
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I mean, I'm sorry, you could calculate or
estimate about how much equity they have.
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Zillow has a estimate here, 233,421.
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You could start with a rough estimate.
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Even when you go down, you can see that the
loan was for, what was it?
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219 or something?
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What was the loan for?
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190.
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Right?
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Now, once we get into paid services, like
I use Citracado, and I'll insert the other
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one right now that I used it, I just went
blank, that you can start paying it.
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And they calculate, and they can tell you
for sure what the current ... how much this
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person currently owns and what their equity
is, because you're going to need that if you
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want to wholesale.
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The property definitely has to have a certain
amount of equity.
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If not, you'd get into different options,
like if you wanted to do owner financing,
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short sales, things like that.
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So that's what I'm saying.
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This is completely free.
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Go play with Zillow, go find pre-foreclosures
and things like that.
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The other thing I tell people to use this
for is to build their network.
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For people who are always saying they're looking
for investor-friendly real estate agents,
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well, just look for agents that have these
foreclosed and bank owned properties, because
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they're already working in the distressed
space, so they are already accustomed to working
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with investors.
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So if you go here, like I said, these are
not for sale, but these are, right?
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These foreclosures are for sale.
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But if you come here, click on these, you
can find agents that are already active in
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the REO world.
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So look, phone number, look, all her info.
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And like I said, a lot of times, if they have
one, they're going to have other ones.
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Just click here.
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Look.
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Boom, another one.
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See?
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And that's it.
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These are all investor-friendly agents.
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They're already used to seeing investors.
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They're used to getting calls from investors
and telling you what to do.
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And see, you could also see that they have
other recent sales.
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These are probably other REOs.
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So this is a great way.
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I always tell people, just click on the zip
code area you're interested in.
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These are agents that you want to start with
and build your network to have investor-friendly
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agents that can send you leads and let you
know what may be coming on the market and
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things like that.
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Look at this.
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This looks like it might not be too bad from
the outside.
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Let's see.
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That's it.
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Foreclosures will give you a surprise, see?
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Okay, here's one.
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Not too bad, right?
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Now, look, this would be a quick flip, quick
fix up and rent or something, depending, you
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know, under the circumstances.
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It's not one that's like ... Foreclosures
can be tore up from the floor up.
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So that's what I'm saying.
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I would be contacting him if this was my area.
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That's somebody I need to know.
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That's my tip for you today.
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I'll see you next video.
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Remember to subscribe, subscribe, and hit
that Like button to help with the YouTube
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algorithm.
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Bye-bye.
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See you next time.
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I love you.
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Bye-bye.
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