Episode Details

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.

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• 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