Welcome to Rhode Island!!
Donnie Bennett


Foreclosure Foreclosed home - FB VersionI can’t tell you how many times per week that I speak to people who are looking for the “best way to find foreclosures”.

That’s because the majority of people have been systematically deceived about how many successful investors actually procured and subsequently sold their foreclosure investment homes. Then pile on top of that, the fact that there are countless websites and services proclaiming some level of exclusivity with foreclosures lists.

Since way before those infomercials from the 80s and 90s were touting “NO MONEY DOWN” real estate investing — with an emphasis on FORECLOSURE PROPERTIES for pennies on the dollar — the general public has been enthralled with the concept of buying a foreclosed home and then turning a giant profit on it. And there are many people who view the allure of buying a foreclosed home from something other than an investing standpoint – they just want a good place to call home… and they’re willing to roll up their sleeves to polish up the right property for them and their family.

Whichever scenario best describes you… buying a foreclosure can certainly be a great way to save money on purchasing a new home, but you need to exercise a certain amount of caution.

Although foreclosure discounts can significantly lower the cost of a property, it would be very easy for you to end up underwater (financially) if you’re not careful.

The first

Avoid making these common mistakes when buying a foreclosure:

#1) HIRE A REALTOR® ★★★★★

Sure this seems self-serving for me, but the fact remains that THERE ARE NO SECRET LISTS. When a bank forecloses on a home, they are required to list with a brokerage. Consequently all of these properties are entered in to the MLS, which is owned and distributed by “WE, THE REALTORS®.”

With all of the consumer websites out there that are offering information on real estate – it should be noted that the overwhelming majority of them are merely syndicating and/or displaying information from the MLS. Some dress it up better than others with repackaging and graphics that make it look like they have some sort of exclusive corner on uncovering and/or distributing the information (yes – even ZILLOW). But the truth is… you would get the same information even faster with a good agent working for you.

It’s FREE to have a buyers’ agent working for you in most cases, so why wouldn’t you have one?


It’s actually quite easy to find foreclosed properties. In fact – you can find them in every neighborhood, anywhere in the nation. When conducting your search, try to stick to certain criteria so that you’re only viewing the properties that it makes sense to consider. Focus on specific areas in order to avoid being overwhelmed. This will also help you to better familiarize yourself with local ordinances and restrictions, on your way to becoming an expert investor or even just a more knowledgeable home owner. In the end – the result will be that you only enter in to a contract on a property that most meets your needs.


That’s a nice driveway… until you learn it’s not your driveway. The cesspool is still functional – except there’s a new law in place that now says you must replace it with a $20,000 septic system within your first year of ownership. Maybe you’re financing the property but then you find out that the home is not able to be financed with the type of mortgage that you’re qualified for – and you don’t find out till you’ve already expended cash on contractors, surveyors an appraiser or other expenses.

What are you actually buying? Did you know that some foreclosed properties can transfer with liens or encumbrances that might make the home difficult to manage, once you become the owner? Check out the property thoroughly. Get a TITLE & CLOSING ATTORNEY. Investigate State and local laws to avoid legal issues. There’s sometimes specific contract language needed to protect you, and if it’s missing you could either be executing a contract that doesn’t restrict your liability – or – that could eventually be deemed to be invalid.


With any product or service in the world… whether the price is very high or the price very low… in the end, one thing is always true… you get what you pay for.

When you automatically expect a staggering discount on a foreclosure property – you will repeatedly become disappointed. Banks are not your friends. They are a business. And their business is to not get hammered if they can avoid it. So don’t assume that they will take a significant amount LESS than they are asking on a foreclosed property.

Yes – it’s true that EVERYTHING in real estate is open to negotiation. But you can only push so much before an opportunity will simply bypass you completely. Be realistic. Know the market. Know the property. Know your bargaining position versus other buyers you’re competing against or whichever lien holder that you’re negotiating with.


This seems like advice you’d get from “Captain Obvious”, but it still needs to be said because it’s extremely important to your bottom line.

Set aside at least 10% of the home’s cost in a “repair fund”. When shopping for foreclosures, don’t just look at the list price when determining your budget. Repairs are commonly – scratch that – repairs are ALWAYS needed in foreclosed homes. Especially ones that have been vacant for a while.


Once upon a time I met a woman who had to sell her home. Whether or not the home was previously a foreclosed property makes no difference. The problem was that she wanted to sell, but the home was worth far LESS than what she paid for it. She had assumed that real estate always goes up in value and she couldn’t wrap her head around the fact that she was looking at a giant loss.

She had purchased the home when the market was high. And then she had over-improved the home at a time when the market was tumbling. So when she was ready to sell, it was after making giant investments in to the home that could not be recovered.

None of us can predict the future with 100% accuracy. So you must do your best to get good information and make your best efforts to think long-term on all investments. Try to establish if the foreclosed home you buy will be a good investment ten years down the road. If you don’t think that far ahead, you could be investing in property that will decline in value.

Do you need help buying a foreclosed home? When in doubt, speak to a professional with experience.

And with that… please remember that I am here to bring you REAL ANSWERS to your REAL ESTATE questions. I am now accepting new Buyer and Seller clients in preparation for the spring 2016 selling season… or even if you are one of the smart sellers who knows that LISTING IN THE WINTER is actually a great way to avoid the competition and command top dollar by dealing from a position of strength.

So whether you’re thinking of SELLING in 2016 or beyond – or if you’re looking to BUY RIGHT NOW… no question is too small… feel free call.

 Trust me… I’m an AWESOME REALTOR!!

For more information… or for details on any specific property you might be consider buying (whether money is no object, or every penny counts)… please reach me anytime… 7 days per week. My team and I serve residential buyers and sellers all over New England… with affiliates around the world! Are you a FSBO SELLER? Call me for my complete guide to SELLING YOUR HOME ON YOUR OWN!

Thanks for visiting my website. Rhode Island is my home, and I’m always here to help.



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Donnie Bennett

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Donnie Bennett

Team Leader, Residential Expert, REALTOR®


401-269-9615401-269-9615 main


931 Jefferson Blvd., Suite 2006 - Warwick, RI 02886

Donnie Bennett, REALTOR®​ Serving Rhode Island