Crazy Sh*t In Real Estate Episode 57: Bill Hamberg

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.

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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

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