Foreclosures attract potential investors

As the number of foreclosures rise locally and nationally, investors are talking about using foreclosure lists as a way to find deals and turn profits.

How to use these lists is the topic of the first Grand Strand Real Estate Investment Association meeting Tuesday, which will kick off the start of a local chapter of a national organization.

A group of local real estate investors have been meeting to swap tricks of the trade and are now opening their group to others.

The group says this is the place where any kind of investor - brand-new or seasoned - can learn from others and find partners for deals.

Next week, veteran investor Leon Humphrey, business developer for The Goins Group in Lake Wylie, will lead listeners through every stage of the process of buying and selling foreclosures - from purchasing them before they hit auction to buying properties the bank has bought back.

In the last week, Yahoo Buzz reports that searches on "foreclosure homes," "foreclosure listings" and "bank foreclosures" have all increased.

Humphrey said he wants to give information that rookies can understand.

"I'll deal with basic stuff for those who have an interest and have never known where to start or what they might be able to do," he said.

Humphrey, a 64-year-old ordained Baptist preacher, has been buying and selling properties for years in the Charlotte, N.C., area, and speaks across the Carolinas for The Goins Group, which teaches investing. It's supported by Financial Help Services, a lending company for investors. Another arm of the company buys and sells about 10 to 15 homes a month.

"The beauty of groups like this is it creates a network. Right now I tell people it is raining houses. I cannot get to all the houses that come my way," he said.

The Grand Strand's group has been meeting informally for about six months and says they've learned so much from each other that they want to create a larger network.

Member Radha Herring recently moved to the Strand from Charlotte. She specializes in renting out multifamily properties but found it harder to get a positive cash flow on the Strand.

Joining the REIA group, she said, gave her insight into other forms of real-estate investment.

"They taught me how they do their deals. You can always learn something from them," she said.

Many in the group started out reading real-estate-investment books, but they say there comes a time when you need some support to get out there and start buying.

Mike Childs, investor with County Homes, said he got started in real-estate investment by attending meetings of a similar regional group.

"I had lost a lot of money in the stock market, and I wanted to invest in real estate. I was afraid of losing money again," he said.

Meeting with other investors helped him learn enough to know how to analyze and invest safely.

"Because you can lose money," he said.

Many in the group specialize in buying pre-foreclosures, foreclosures and bank-owned properties to maximize profits.

Sean Corder, owner of SMC Investments Inc., buys and sells homes for a living.

"This is the best buying market in years," he said.

The group's first meeting starts at 6:30 p.m. Tuesday at the Holiday Inn West. Investors will have time to network and discuss current deals, and Humphrey speaks at 7:30 p.m.

Do your research

A world-recognized market research teacher will be on the Grand Strand this month for a four-day seminar.

Tennyson Williams, founder and managing partner of Southpointe Partners Ltd., has taught market research in Russia and China. His seminar from June 20 through 23 will teach how to forecast demand, how to identify market opportunities or oversupply and how to do site feasibility.

Paul Booth, owner of the land group The Booth Co., which is hosting the seminar, said he's sending five of his employees, but there's room for about 30 more.

Booth invited Williams to the Strand after he realized that a changing market means land owners and developers need to do thorough research before building. He wanted good training for his employees.

He has seen some developers overlook extensive research during the market boom.

"When a market is white-hot, research wasn't as needed. It will sell if the development is good," Booth said. "But in a real-estate bear market, it becomes more and more critical to understand the market research."

The seminar costs $600, and participants can register by calling 448-2009.

Contact JENNY BURNS at 626-0305 or jeburns@thesunnews.com.

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