Every day, the government confiscates, seizes and repossesses thousands of items. It's sold at government auctions for up to 90% off the wholesale price. And it's more than just cars and houses. Nearly anything you can imagine is on sale.
Showing posts with label Foreclosures. Show all posts
Showing posts with label Foreclosures. Show all posts
Are You Still On The Sidelines?
In my business this week, I have seen packages of properties coming into my emails for pennies on the dollar. If you have IRA funds or other retirement funds that you are just wincing everyday that are in the stock market, maybe you need to move them to a better money making possibility.
Its definitely something to think about. There are a lot of deals out there. If you are looking to move some money into real estate related investments, let me know. I have several groups of properties that are available in that kind of format.
In closing I saw 2 quotes that I would like to share with you today that got me thinking. Maybe you might appreciate them too. Here they are:
"The best way to make your dreams come true is to wake up."
-- Paul Valery, French Poet
and
"Life is to be lived. If you have to support yourself, you had bloody well better find some way that is going to be interesting. And you don't do that by sitting around."
-- Katherine Hepburn, American actress who received the most Oscar wins (four from twelve nominations). She had a highly acclaimed career for 73 years and was honored as "The Greatest Female Star in the History of American Cinema" by the American Film Institute in 1999.
You have a great day and start to your week. Remember to keep moving forward.
Your friend,
Rosanne Cellini
http://www.foreclosurespotlight.com
Its definitely something to think about. There are a lot of deals out there. If you are looking to move some money into real estate related investments, let me know. I have several groups of properties that are available in that kind of format.
In closing I saw 2 quotes that I would like to share with you today that got me thinking. Maybe you might appreciate them too. Here they are:
"The best way to make your dreams come true is to wake up."
-- Paul Valery, French Poet
and
"Life is to be lived. If you have to support yourself, you had bloody well better find some way that is going to be interesting. And you don't do that by sitting around."
-- Katherine Hepburn, American actress who received the most Oscar wins (four from twelve nominations). She had a highly acclaimed career for 73 years and was honored as "The Greatest Female Star in the History of American Cinema" by the American Film Institute in 1999.
You have a great day and start to your week. Remember to keep moving forward.
Your friend,
Rosanne Cellini
http://www.foreclosurespotlight.com
Investing in Yourself!
I am a big believer in investing in yourself
and educating yourself. Over the last several
years, I have taken the time to read and study
materials on real estate, marketing, and self
development. So, I am an avid reader.
Reading helps you grow so you can move into
action!
I recently have read a good book that I want to
recommend to you. Its by Robert Shemin and this
book is called "How Come THAT Idiots Rich and I'm Not!"
I have to tell you that I really enjoyed this book quite a lot.
Robert Shemin has authored several books and
this is the 1st book I have read by him.
This book not only talks about Real Estate and
other assets but also probably one of the most
important subjects of all, your mindset and the
way you think. Sometimes your mindset or the
way you think(your mental attitude) holds you
back every day keeping you from taking action!
I should know, I have been there and done that!
The first 2 chapters alone are worth the price of
the book. You may even find yourself relating
to some of the scenario's that Robert brings up.
Possibly even laughing about it because you know
that you have done what he is writing about!
I encourage you to step up, invest/educate in
yourself and start to read daily. It will help
you start your day in a positive direction. I
personally like to read in the mornings before
I even start my work day. I find that this helps
me with my whole attitude in general!
One of the 1st books you can start with is Robert
Shemins book because it covers a lot of good things
including moving toward action packaged into one
great book. So, take action, get this good book
and keep moving forward!
I will let you know when I come across
another good book to add to your library! Another
book or should I say ebook that might be good is at
www.foreclosurespotlight.com
Have a great day and keep moving forward!
and educating yourself. Over the last several
years, I have taken the time to read and study
materials on real estate, marketing, and self
development. So, I am an avid reader.
Reading helps you grow so you can move into
action!
I recently have read a good book that I want to
recommend to you. Its by Robert Shemin and this
book is called "How Come THAT Idiots Rich and I'm Not!"
I have to tell you that I really enjoyed this book quite a lot.
Robert Shemin has authored several books and
this is the 1st book I have read by him.
This book not only talks about Real Estate and
other assets but also probably one of the most
important subjects of all, your mindset and the
way you think. Sometimes your mindset or the
way you think(your mental attitude) holds you
back every day keeping you from taking action!
I should know, I have been there and done that!
The first 2 chapters alone are worth the price of
the book. You may even find yourself relating
to some of the scenario's that Robert brings up.
Possibly even laughing about it because you know
that you have done what he is writing about!
I encourage you to step up, invest/educate in
yourself and start to read daily. It will help
you start your day in a positive direction. I
personally like to read in the mornings before
I even start my work day. I find that this helps
me with my whole attitude in general!
One of the 1st books you can start with is Robert
Shemins book because it covers a lot of good things
including moving toward action packaged into one
great book. So, take action, get this good book
and keep moving forward!
I will let you know when I come across
another good book to add to your library! Another
book or should I say ebook that might be good is at
www.foreclosurespotlight.com
Have a great day and keep moving forward!
When Investing in Pre-Foreclosures Should You Hire a Buyers Agent ?
When you get started in the business of investing in pre-foreclosure homes, one of your key decisions will be whether, and the extent to which, you use real estate agents to locate and negotiate the purchase of properties for you.
Real estate agents are professionals licensed to represent buyers and/or sellers in real estate transactions. Because they deal with properties day in and day out, usually focusing on one specific geographical area and often on a certain type of property, they can often provide invaluable expertise about the properties in a given area. Plus, highly skilled agents will be adept at negotiation, and should therefore be able to negotiate a better deal for you.
Having said that, a buyers agent , like a sellers agent, is still compensated based on a split of the commission on the sale. The commission is a percentage of the sales value of the property. Therefore, there is a legitimate argument that the buyers agent lacks a strong incentive to negotiate down on price. On the other hand, buyers agents have fiduciary duties to act in the best interests of their clients. What's more, successful buyers agents, particularly those representing investors, know that they will do much better in the long run if they properly serve and retain their clients. By negotiating in their clients best interests on one deal, they are more likely to get the next deal, and the next, and the next, and so on.
Another legitimate objection to using buyers agents is that you will be able to save on the commission if you negotiate directly with the owner of a pre-foreclosure or their agent (sellers agent). However, unless you are an experienced negotiator, you may find yourself saving nothing, and even paying more, if you handle your own negotiations.
If you have strong relationships with buyers agents and they have either close contacts with sellers agents who represent pre-foreclosure homes or deal in such properties themselves, you are likely to have an advantage in terms of being the "first to know" when a new home becomes, or is likely to become, available. While such information becomes a matter of public record, agents often become aware of the situation before the news spreads.
Finally, by using multiple buyers agents, you can literally cover more ground; you can stay abreast of opportunities in multiple locations simply because you have more people to help you.
In conclusion, while a seasoned investor may be able to locate and negotiate better deals by locating and buying properties him or herself, for a majority of investors dealing with an agent may be a smarter and more advantageous option.
For a comprehensive guide to investing in pre-foreclosures, please go to www.foreclosurespotlight.com
Real estate agents are professionals licensed to represent buyers and/or sellers in real estate transactions. Because they deal with properties day in and day out, usually focusing on one specific geographical area and often on a certain type of property, they can often provide invaluable expertise about the properties in a given area. Plus, highly skilled agents will be adept at negotiation, and should therefore be able to negotiate a better deal for you.
Having said that, a buyers agent , like a sellers agent, is still compensated based on a split of the commission on the sale. The commission is a percentage of the sales value of the property. Therefore, there is a legitimate argument that the buyers agent lacks a strong incentive to negotiate down on price. On the other hand, buyers agents have fiduciary duties to act in the best interests of their clients. What's more, successful buyers agents, particularly those representing investors, know that they will do much better in the long run if they properly serve and retain their clients. By negotiating in their clients best interests on one deal, they are more likely to get the next deal, and the next, and the next, and so on.
Another legitimate objection to using buyers agents is that you will be able to save on the commission if you negotiate directly with the owner of a pre-foreclosure or their agent (sellers agent). However, unless you are an experienced negotiator, you may find yourself saving nothing, and even paying more, if you handle your own negotiations.
If you have strong relationships with buyers agents and they have either close contacts with sellers agents who represent pre-foreclosure homes or deal in such properties themselves, you are likely to have an advantage in terms of being the "first to know" when a new home becomes, or is likely to become, available. While such information becomes a matter of public record, agents often become aware of the situation before the news spreads.
Finally, by using multiple buyers agents, you can literally cover more ground; you can stay abreast of opportunities in multiple locations simply because you have more people to help you.
In conclusion, while a seasoned investor may be able to locate and negotiate better deals by locating and buying properties him or herself, for a majority of investors dealing with an agent may be a smarter and more advantageous option.
For a comprehensive guide to investing in pre-foreclosures, please go to www.foreclosurespotlight.com
Investing With Partners Part 3
Today we conclude this series on
Investing with Parners with the final
3rd scenario.
The third scenario is where you partner
with one or more investors for not just
one, but a number of property deals. Such
a partnership is based not so much on sharing
the burden of financing or the risk of the
investment, but on the opportunity to benefit
from shared skills, knowledge and efforts,
which, over time, is likely to yield greater
profits from a larger number of deals.
Where you are not providing much or any of
the finance for a deal, your partners will
finance the deals using either their own
resources or borrowings based on their individual
income and credit standings. Your contribution
is essentially the work you put in. The deal
may be "split" in a number of ways - equally,
in your favor, or in the favor of your partner(s).
Just be sure to consult an attorney to prepare
all the required legal documentation to establish
the partnership. For example, you will generally
want it to be limited liability partnership where
each partner's liability and share of profits are
specifically defined and limited. The agreement
should also detail each partner's rights and
responsibilities, and the process for resolving
any disputes.
Whether you partner with other investors out of
necessity or choice, you may find that by working
with others, you can get involved in pre-foreclosure
investing much faster, be able to do more deals,
and generate more profits.
I hope the emails over the last couple of days
have been helpful. If you have missed any of the
first 2 parts of this email, please go to my blog at
http://foreclosurespotlight.blogspot.com/
I hope you have a great weekend and as always please
check out my website for more detailed information at
www.foreclosurespotlight.com
Rosanne Cellini
Investing with Parners with the final
3rd scenario.
The third scenario is where you partner
with one or more investors for not just
one, but a number of property deals. Such
a partnership is based not so much on sharing
the burden of financing or the risk of the
investment, but on the opportunity to benefit
from shared skills, knowledge and efforts,
which, over time, is likely to yield greater
profits from a larger number of deals.
Where you are not providing much or any of
the finance for a deal, your partners will
finance the deals using either their own
resources or borrowings based on their individual
income and credit standings. Your contribution
is essentially the work you put in. The deal
may be "split" in a number of ways - equally,
in your favor, or in the favor of your partner(s).
Just be sure to consult an attorney to prepare
all the required legal documentation to establish
the partnership. For example, you will generally
want it to be limited liability partnership where
each partner's liability and share of profits are
specifically defined and limited. The agreement
should also detail each partner's rights and
responsibilities, and the process for resolving
any disputes.
Whether you partner with other investors out of
necessity or choice, you may find that by working
with others, you can get involved in pre-foreclosure
investing much faster, be able to do more deals,
and generate more profits.
I hope the emails over the last couple of days
have been helpful. If you have missed any of the
first 2 parts of this email, please go to my blog at
http://foreclosurespotlight.blogspot.com/
I hope you have a great weekend and as always please
check out my website for more detailed information at
www.foreclosurespotlight.com
Rosanne Cellini
Investing With Partners
Investors often believe that in order to invest in a property they need either a large amount of cash or at least a perfect credit history in order to get a loan. But in reality, there are various non-traditional ways to raise finance for an investment that require neither a good credit history nor a large cash balance. One such non-traditional source of financing is partnering with other investors.
Partnering with other investors is particularly advantageous in three scenarios. The first scenario is where you simply don't have the kind of cash or credit required to structure an investment deal. In this case, partnering with other investors enables you to raise the finance without having to put in any cash of your own. Meanwhile, you will gain equity in the investment based on the work you put in. And because the partnership is an "equity partnership" - meaning that each investor gets a share of the equity in the home plus any corresponding profits - then neither do you need to pay any money back.
Tomorrow we will look at the next scenario in partnering with other investors. Until then to find out more information about how to structure and finance pre-foreclosure property investments, check out my website at
www.foreclosurespotlight.com
Partnering with other investors is particularly advantageous in three scenarios. The first scenario is where you simply don't have the kind of cash or credit required to structure an investment deal. In this case, partnering with other investors enables you to raise the finance without having to put in any cash of your own. Meanwhile, you will gain equity in the investment based on the work you put in. And because the partnership is an "equity partnership" - meaning that each investor gets a share of the equity in the home plus any corresponding profits - then neither do you need to pay any money back.
Tomorrow we will look at the next scenario in partnering with other investors. Until then to find out more information about how to structure and finance pre-foreclosure property investments, check out my website at
www.foreclosurespotlight.com
How To Go From Home Owner To Pre-Foreclosure or Foreclosure Investor
To go from home owner to successful pre-foreclosure or foreclosure investor, the first step is to plan your transition. The key to success in real estate investing is to be constantly making money. Therefore, even if you own only a single asset at a time, you need a plan for choosing the right investment property and making such decisions as how to finance the property, your exit strategy, and whether to repair or re-model the property.
The great thing about pre-foreclosure and foreclosure investing is that you don't necessarily have to pay for everything on your own. You can partner with other investors and, if you rent out the property you buy, have your tenant not only cover any loan repayments, but essentially purchase the property on your behalf. Investing in pre-foreclosures and foreclosures also enables you to take advantage of a number of exit options. "Home flipping", for example, is the term used for investment deals involving buying, fixing and subsequently selling properties for a profit.
Plus, since you are focusing on pre-foreclosures and foreclosure properties, you can potentially get a significant discount to the retail value of the property you buy. That's a major reason why these types of properties are ideal for a home owner who wants to get started in property investing.
If you are starting out in real estate investing, you may adopt an approach whereby you pay off your current home, and try to save enough to invest in another property. The downside of this approach is that it can take an inordinate amount of time. You don't have to wait! There are alternative ways to invest in pre-foreclosure and foreclosure properties that are simpler and faster.
If you wish to begin conservatively, you may decide to invest in, for example, a pre-foreclosure or foreclosure property that would make for an ideal vacation home or second home. Ongoing demand for such properties makes them relatively easy to sell, which allows you to further invest in similar or other properties.
Renting out your existing home while buying and moving into a low-priced pre-foreclosure or foreclosure is another way to get started in pre-foreclosure and foreclosure investing. Yet another approach is to sell your family home in order to have the money to invest in two or more other pre-foreclosure or foreclosure properties, one of which you live in, the other(s) you monetize.
You can also take advantage of the increased value of your family home (if applicable) by refinancing it or taking out a second mortgage in order to invest in one or more other properties.
These are just some of the ways you can make the transition from home owner to pre-foreclosure and foreclosure investor. Over all, I highly recommend pre-foreclosure and foreclosure properties for someone starting out, as they can be purchased relatively cheaply and pose fewer risks than many other kinds of real estate investment.
For more ideas about how to get into pre-foreclosure and/or foreclosure property investing, be sure to get over to my site www.foreclosurespotlight.com
The great thing about pre-foreclosure and foreclosure investing is that you don't necessarily have to pay for everything on your own. You can partner with other investors and, if you rent out the property you buy, have your tenant not only cover any loan repayments, but essentially purchase the property on your behalf. Investing in pre-foreclosures and foreclosures also enables you to take advantage of a number of exit options. "Home flipping", for example, is the term used for investment deals involving buying, fixing and subsequently selling properties for a profit.
Plus, since you are focusing on pre-foreclosures and foreclosure properties, you can potentially get a significant discount to the retail value of the property you buy. That's a major reason why these types of properties are ideal for a home owner who wants to get started in property investing.
If you are starting out in real estate investing, you may adopt an approach whereby you pay off your current home, and try to save enough to invest in another property. The downside of this approach is that it can take an inordinate amount of time. You don't have to wait! There are alternative ways to invest in pre-foreclosure and foreclosure properties that are simpler and faster.
If you wish to begin conservatively, you may decide to invest in, for example, a pre-foreclosure or foreclosure property that would make for an ideal vacation home or second home. Ongoing demand for such properties makes them relatively easy to sell, which allows you to further invest in similar or other properties.
Renting out your existing home while buying and moving into a low-priced pre-foreclosure or foreclosure is another way to get started in pre-foreclosure and foreclosure investing. Yet another approach is to sell your family home in order to have the money to invest in two or more other pre-foreclosure or foreclosure properties, one of which you live in, the other(s) you monetize.
You can also take advantage of the increased value of your family home (if applicable) by refinancing it or taking out a second mortgage in order to invest in one or more other properties.
These are just some of the ways you can make the transition from home owner to pre-foreclosure and foreclosure investor. Over all, I highly recommend pre-foreclosure and foreclosure properties for someone starting out, as they can be purchased relatively cheaply and pose fewer risks than many other kinds of real estate investment.
For more ideas about how to get into pre-foreclosure and/or foreclosure property investing, be sure to get over to my site www.foreclosurespotlight.com
Treating Pre-Foreclosure and Foreclosure Investing as a Business
Congratulations - you have decided to get into the business of investing in pre-foreclosure and foreclosure properties! And guess what? It IS a business. And just like any other business you should think carefully about your business model, devise a business plan, and get all the resources you need to operate it.
First things first - what is your business model? You're already clear that you'll be in the business of acquiring and monetizing pre-foreclosure and foreclosure properties, but what will be your main focus - pre-foreclosures or foreclosures? Or will you focus equally on both, keeping in mind that they differ in a number of important respects. Also, what monetization or exit strategy will you choose to specialize in? Will you look for properties you can rehab and sell? Or are you planning to buy short-sale pre-foreclosures? And don't forget that although you may focus on one particular monetization strategy, you will benefit from having the expertise and flexibility to apply different, but more appropriate monetization strategies in given circumstances.
Secondly, what about your business plan? A business plan sets out the objectives for your business and how you plan to achieve those objectives. Often, the process of planning is more valuable than the actual plan itself, since conditions can change, thereby impacting your plan. So too, just because you prepare a business plan, that doesn't mean it's set in stone. Ideally, you should modify your business plan as your needs, objectives and circumstances change.
When it comes to resourcing your business, think about what you'll need in terms of financing, people and practical tools, like your office set-up. Financing is the "biggie" when it comes to pre-foreclosure and foreclosure investing, but contrary to popular opinion, succeeding in this business does not rely on you having a huge amount of capital upfront. In fact, by being creative and using "other peoples money" (OPM) you can end up securing even more profitable deals than if you used your own cash.
Meanwhile, you'll also want people. This may mean hiring an assistant and/or bookkeeper, or even just building a network of professionals to help you when it comes to locating properties and putting together deals. You'll also need an office - a desk, telephone and a computer with Internet access, among other things. Oh, and don't forget, you'll be travelling around a bit, so make sure you have a reliable car.
These are the basics of treating pre-foreclosure and foreclosure investing as a business. Would you like to learn more about the foreclosure business? Please
download the ebook at my site at www.foreclosurespotlight.com
First things first - what is your business model? You're already clear that you'll be in the business of acquiring and monetizing pre-foreclosure and foreclosure properties, but what will be your main focus - pre-foreclosures or foreclosures? Or will you focus equally on both, keeping in mind that they differ in a number of important respects. Also, what monetization or exit strategy will you choose to specialize in? Will you look for properties you can rehab and sell? Or are you planning to buy short-sale pre-foreclosures? And don't forget that although you may focus on one particular monetization strategy, you will benefit from having the expertise and flexibility to apply different, but more appropriate monetization strategies in given circumstances.
Secondly, what about your business plan? A business plan sets out the objectives for your business and how you plan to achieve those objectives. Often, the process of planning is more valuable than the actual plan itself, since conditions can change, thereby impacting your plan. So too, just because you prepare a business plan, that doesn't mean it's set in stone. Ideally, you should modify your business plan as your needs, objectives and circumstances change.
When it comes to resourcing your business, think about what you'll need in terms of financing, people and practical tools, like your office set-up. Financing is the "biggie" when it comes to pre-foreclosure and foreclosure investing, but contrary to popular opinion, succeeding in this business does not rely on you having a huge amount of capital upfront. In fact, by being creative and using "other peoples money" (OPM) you can end up securing even more profitable deals than if you used your own cash.
Meanwhile, you'll also want people. This may mean hiring an assistant and/or bookkeeper, or even just building a network of professionals to help you when it comes to locating properties and putting together deals. You'll also need an office - a desk, telephone and a computer with Internet access, among other things. Oh, and don't forget, you'll be travelling around a bit, so make sure you have a reliable car.
These are the basics of treating pre-foreclosure and foreclosure investing as a business. Would you like to learn more about the foreclosure business? Please
download the ebook at my site at www.foreclosurespotlight.com
Organizing Your Pre-Foreclosure and Foreclosure Investment Business For Success
Success in foreclosure investing requires getting your business organized to derive maximum advantage from all the available opportunities. That being so, here are some handy tips and hints for organizing your pre-foreclosure and foreclosure investment business success.
Firstly, if you want investor financing, it is a great idea to have lists of potential investors, classifying them based on the type of properties they are interested in. This also helps you make decisions about which deals to pursue. Plus, with ready investors, the speed with which deals can happen goes up, thereby reducing your financing costs.
Another handy asset in your foreclosure investment business is your team. A team does not have to be a formally associated working group. It could just be contacts you develop and maintain over time, such as real estate agents, mortgage brokers, accountants, handymen and contractors. Having a reliable set of associates to work with on each project will help smooth out the entire investment process.
In the pre-foreclosure and foreclosure investing business, it is advisable to be a "master of a few trades" rather than a "jack of all trades". For instance, you may be better off focusing on one or other of foreclosures OR pre-foreclosures. And when it comes to location selection, rather than knowing a little about all areas, narrow your focus to a few and get to know everything there is to know about those areas. Often your investors will have locality preferences, so you should also find these out as this may also narrow down the types of home you look for.
While there is no law about which types of property will yield the most profits, it is often ideal to buy low priced properties in high-priced neighborhoods. For one thing, this makes your property far easier to sell than otherwise.
When researching a property, it is always advisable to get information from multiple sources rather than one single source. That way, you can re-confirm all the information you obtain and get the correct facts. You can then be sure of the decisions you make and relax, knowing that you are not taking on huge risks. This also helps you establish the credibility of a source for future reference.
Finally, while every business has its shares of setbacks and hurdles, a seasoned foreclosure investor is prepared for all possible complications. Whatever plans you make and actions you take, you must prepare for all contingencies. Also, a positive mindset, no matter what the challenges, will go a long way to helping you organize your pre-foreclosure and foreclosure investment business for success.
For a practical plan for organizing your pre-foreclosure and foreclosure property investment business for success, get over to my site http://www.foreclosurespotlight.com
Have a great day!
Rosanne Cellini
Firstly, if you want investor financing, it is a great idea to have lists of potential investors, classifying them based on the type of properties they are interested in. This also helps you make decisions about which deals to pursue. Plus, with ready investors, the speed with which deals can happen goes up, thereby reducing your financing costs.
Another handy asset in your foreclosure investment business is your team. A team does not have to be a formally associated working group. It could just be contacts you develop and maintain over time, such as real estate agents, mortgage brokers, accountants, handymen and contractors. Having a reliable set of associates to work with on each project will help smooth out the entire investment process.
In the pre-foreclosure and foreclosure investing business, it is advisable to be a "master of a few trades" rather than a "jack of all trades". For instance, you may be better off focusing on one or other of foreclosures OR pre-foreclosures. And when it comes to location selection, rather than knowing a little about all areas, narrow your focus to a few and get to know everything there is to know about those areas. Often your investors will have locality preferences, so you should also find these out as this may also narrow down the types of home you look for.
While there is no law about which types of property will yield the most profits, it is often ideal to buy low priced properties in high-priced neighborhoods. For one thing, this makes your property far easier to sell than otherwise.
When researching a property, it is always advisable to get information from multiple sources rather than one single source. That way, you can re-confirm all the information you obtain and get the correct facts. You can then be sure of the decisions you make and relax, knowing that you are not taking on huge risks. This also helps you establish the credibility of a source for future reference.
Finally, while every business has its shares of setbacks and hurdles, a seasoned foreclosure investor is prepared for all possible complications. Whatever plans you make and actions you take, you must prepare for all contingencies. Also, a positive mindset, no matter what the challenges, will go a long way to helping you organize your pre-foreclosure and foreclosure investment business for success.
For a practical plan for organizing your pre-foreclosure and foreclosure property investment business for success, get over to my site http://www.foreclosurespotlight.com
Have a great day!
Rosanne Cellini
Pick up a Good Deal at an Auction!
I was looking at some of the newspapers
and emails I get from various resources
that talk about real estate. I am
sure it's no surprise to anyone that all
you are reading is that the real estate
market is a mess, the foreclosures are
escalating, don't try to sell your home now,
more doom and gloom etc... This may make
some people/investors cringe and not want
to even try to get out there and do any
investing. But its totally the opposite!
Now is the time to be looking for those
deals. Searching and looking to see if
you can find a deal to buy. There are quite
a few bargains out there if you are
looking and doing some searching.
One example I can give you is:
I have a business associate, that I do deals
with occasionally, that goes to the Sheriffs
sales. The Sheriffs sales typically have
foreclosures that they auction off.
I know over the past couple of weeks we
have talked about auctions and the auction
process. Well, she was able to pick up
quite a deal at the auction for 65% of appraised
value. That may or may not sound that exciting
to you but this property that she picked up
was in an excellent neighborhood and she
has a plan.
First she is going to try to do a quick sale
on it, see if she can just turn around and
wholesale it. That would be Plan A.
Plan B would be for her to do the fix up
herself, while continue to do marketing on
the property.
By the way did I mention that this property
doesn't need much in fix up.
Only fresh paint, carpet and replace some
flooring. The house was in pretty good shape.
Sometimes you think because its a foreclosure
that it has to be in bad condition. That is
not always the case as you can see here.
Here we have someone who has implented and
bought a property who has a plan. Its a good
example of what to do in all of our businesses.
Speaking of businesses, what do you have going
on in your business? Do you have properties
that you need to sell? If you have a moment,
please respond back and tell me what you have
going on and/or a property to sell.
You can find more info on foreclosures at my website: http://www.foreclosurespotlight.com
and emails I get from various resources
that talk about real estate. I am
sure it's no surprise to anyone that all
you are reading is that the real estate
market is a mess, the foreclosures are
escalating, don't try to sell your home now,
more doom and gloom etc... This may make
some people/investors cringe and not want
to even try to get out there and do any
investing. But its totally the opposite!
Now is the time to be looking for those
deals. Searching and looking to see if
you can find a deal to buy. There are quite
a few bargains out there if you are
looking and doing some searching.
One example I can give you is:
I have a business associate, that I do deals
with occasionally, that goes to the Sheriffs
sales. The Sheriffs sales typically have
foreclosures that they auction off.
I know over the past couple of weeks we
have talked about auctions and the auction
process. Well, she was able to pick up
quite a deal at the auction for 65% of appraised
value. That may or may not sound that exciting
to you but this property that she picked up
was in an excellent neighborhood and she
has a plan.
First she is going to try to do a quick sale
on it, see if she can just turn around and
wholesale it. That would be Plan A.
Plan B would be for her to do the fix up
herself, while continue to do marketing on
the property.
By the way did I mention that this property
doesn't need much in fix up.
Only fresh paint, carpet and replace some
flooring. The house was in pretty good shape.
Sometimes you think because its a foreclosure
that it has to be in bad condition. That is
not always the case as you can see here.
Here we have someone who has implented and
bought a property who has a plan. Its a good
example of what to do in all of our businesses.
Speaking of businesses, what do you have going
on in your business? Do you have properties
that you need to sell? If you have a moment,
please respond back and tell me what you have
going on and/or a property to sell.
You can find more info on foreclosures at my website: http://www.foreclosurespotlight.com
Guiding a Pre-Foreclosure Owner Through a Short Sale
For property owners who are unable to make their mortgage payments on time, foreclosure or filing for bankruptcy may seem inevitable. But the truth is that there are alternatives. One such alternative is called the "short sale".
As a property investor looking to buy a property during the pre-foreclosure stage of foreclosure proceedings, it's worthwhile knowing how to explain the options available to a home owner, so you can help them appreciate the appeal of your purchase offer. In particular, selling them on the concept of a "short sale" is likely to benefit both you and them. And you can help "sell" them by helping them with the tasks of (a) convincing their lender to approve the short sale, and (b) assembling all the paper-work required.
A short sale is where the lender is willing to accept an amount that falls short of the total that is actually due. This may not always be acceptable to a lender, particularly if a foreclosure would make more financial sense. Also, a seller or property must qualify for a short sale based on certain criteria, which may not always be present.
For anyone planning to short sell a property, there may be certain pitfalls and it is advisable to suggest that the home owner obtain advice from a lawyer competent in property matters. It is also in their interests to consult an accountant in order to understand all the tax implications of a short sale. For example, the Internal Revenue Service considers forgiven debt to be income. Plus, following a short sale, lenders sometimes go after the borrower to recover the shortage, or "deficiency" as it is known in some states.
In order to have your offer to buy a pre-foreclosure via short sale accepted by a lender, you'll need to comply with their requirements regarding such matters as the documents to be submitted and procedures to be followed. In general, the first step is for the home owner to call the lender and discuss the offer and why it should be accepted. The next step is for the home owner to provide the lender with a number of important documents.
The first such document is an authorization letter which records the home owners approval for the the lender to talk to any party who may have an interest in the loan. Another document that must be put together and submitted is the preliminary net sheet. This is the balance sheet applying to the mortgage. The home owner may need their lawyer or closing agent to assist with this.
Combined with the above, the home owner will also need to put together a hardship letter explaining their poor financial situation and how they got into it. This letter should have an emotional appeal to it. Other documents required by a lender are likely to be proof of the home owners assets (if any) and sources of income, along with amounts. The home owner should also furnish copies of bank statements, along with written explanations for any large, unusual transactions.
Often the home owners financial situation is the outcome of a fall in property values in their area. If so, a comparative analysis of the market will help build a case for the short sale. You can provide this to the home owner in order for them to supply it to their lender (although the lender will typically conduct its own appraisal of market values).
Finally, the lender will want to see a copy of the sale and purchase agreement. If this, along with the other documents provided, are acceptable, the lender will likely approve the deal.
As you can see, a home owner must do a little work to convince their lender to approve a short sale. Therefore, if you as the purchaser can guide the home owner through this process and help them as much as you can in terms of assembling and providing all the required documents, you will probably have a better chance of securing the deal.
For a more detailed explanation of how to guide home owners through the process of arranging a short sale, check out my site http://www.foreclosurespotlight.com
As a property investor looking to buy a property during the pre-foreclosure stage of foreclosure proceedings, it's worthwhile knowing how to explain the options available to a home owner, so you can help them appreciate the appeal of your purchase offer. In particular, selling them on the concept of a "short sale" is likely to benefit both you and them. And you can help "sell" them by helping them with the tasks of (a) convincing their lender to approve the short sale, and (b) assembling all the paper-work required.
A short sale is where the lender is willing to accept an amount that falls short of the total that is actually due. This may not always be acceptable to a lender, particularly if a foreclosure would make more financial sense. Also, a seller or property must qualify for a short sale based on certain criteria, which may not always be present.
For anyone planning to short sell a property, there may be certain pitfalls and it is advisable to suggest that the home owner obtain advice from a lawyer competent in property matters. It is also in their interests to consult an accountant in order to understand all the tax implications of a short sale. For example, the Internal Revenue Service considers forgiven debt to be income. Plus, following a short sale, lenders sometimes go after the borrower to recover the shortage, or "deficiency" as it is known in some states.
In order to have your offer to buy a pre-foreclosure via short sale accepted by a lender, you'll need to comply with their requirements regarding such matters as the documents to be submitted and procedures to be followed. In general, the first step is for the home owner to call the lender and discuss the offer and why it should be accepted. The next step is for the home owner to provide the lender with a number of important documents.
The first such document is an authorization letter which records the home owners approval for the the lender to talk to any party who may have an interest in the loan. Another document that must be put together and submitted is the preliminary net sheet. This is the balance sheet applying to the mortgage. The home owner may need their lawyer or closing agent to assist with this.
Combined with the above, the home owner will also need to put together a hardship letter explaining their poor financial situation and how they got into it. This letter should have an emotional appeal to it. Other documents required by a lender are likely to be proof of the home owners assets (if any) and sources of income, along with amounts. The home owner should also furnish copies of bank statements, along with written explanations for any large, unusual transactions.
Often the home owners financial situation is the outcome of a fall in property values in their area. If so, a comparative analysis of the market will help build a case for the short sale. You can provide this to the home owner in order for them to supply it to their lender (although the lender will typically conduct its own appraisal of market values).
Finally, the lender will want to see a copy of the sale and purchase agreement. If this, along with the other documents provided, are acceptable, the lender will likely approve the deal.
As you can see, a home owner must do a little work to convince their lender to approve a short sale. Therefore, if you as the purchaser can guide the home owner through this process and help them as much as you can in terms of assembling and providing all the required documents, you will probably have a better chance of securing the deal.
For a more detailed explanation of how to guide home owners through the process of arranging a short sale, check out my site http://www.foreclosurespotlight.com
Best Deals at Foreclosure Auctions
In my last post, I talked a little about the Auction process. In this post I talk about some tips for getting the best possible deal at a foreclosure auction.
Tip #1: Do your homework
Before attending the auction, it's crucial to do your homework. When you bid on a foreclosure property at a public auction, you cannot retract your bid. Therefore, do as much research as you can on the properties being offered at the auction. Ideally, focus only on one property, or just a small number of properties, so that you have some idea of their market value before bidding on them.
Tip #2: Inspect the property or properties
It's highly unlikely that you'll be able to inspect a property being auctioned. The home owner is hardly going to be agreeable to a bunch of people assessing their home, which they are being forced out of. However, you have nothing to lose by asking for an inspection. If it's not possible, be sure to drive to the property and assess it to the extent you can. The less you can find out about the property, the more you should assume the worst! In other words, assume that the property needs significant repairs and improvements, and budget accordingly.
Tip #3: Identify any liens, liabilities and unpaid property taxes
It's also imperative to conduct whatever research you can to identify any liens, liabilities and unpaid property taxes attaching to the property. When you buy a foreclosure home, you'll also be accepting such liens, liabilities and taxes. If you're not aware of these before you buy... you could be in for a nasty shock. So too, the existence and extent of these should reduce the value of the home, which you should take into account when bidding. Therefore, perform a title search and any other necessary searches to identify any of these.
Tip #4: Know what to bid
Your strategy for monetizing the foreclosure will affect how much you should bid for it at the auction. In other words, how do you plan to achieve a return on your investment? Will you make cosmetic changes to the property and sell it shortly after buying? Will you rehab it and then rent it out or sell it? Calculate your expected return and determine your maximum bid accordingly. Just be sure to take into account the possibility that the property has more problems than may have appeared at first... and have a Plan B... and C.
Tip #5: Be prepared to pay a deposit
In most cases, you'll need to pay a deposit on a property you buy at auction. This is often 10 percent of the winning bid price and must be paid on the day of the auction in the form of certified funds. In some states you will need to pay the balance of the purchase price on the day of the auction; in other states, you'll have 30 days to pay the balance. Be clear on the rules that apply to the auction in question and make sure you have what you need in terms of a deposit.
Tip #6: Stay rational
A foreclosure auction can be fast-paced and intense. It can be easy to get caught up in a "bidding war". Don't! Stay calm and rational, and stick to your plan. Only bid on the properties you have decided to buy and don't bid any more than the maximum you previously decided to pay.
Please also see www.foreclosurespotlight.com
Tip #1: Do your homework
Before attending the auction, it's crucial to do your homework. When you bid on a foreclosure property at a public auction, you cannot retract your bid. Therefore, do as much research as you can on the properties being offered at the auction. Ideally, focus only on one property, or just a small number of properties, so that you have some idea of their market value before bidding on them.
Tip #2: Inspect the property or properties
It's highly unlikely that you'll be able to inspect a property being auctioned. The home owner is hardly going to be agreeable to a bunch of people assessing their home, which they are being forced out of. However, you have nothing to lose by asking for an inspection. If it's not possible, be sure to drive to the property and assess it to the extent you can. The less you can find out about the property, the more you should assume the worst! In other words, assume that the property needs significant repairs and improvements, and budget accordingly.
Tip #3: Identify any liens, liabilities and unpaid property taxes
It's also imperative to conduct whatever research you can to identify any liens, liabilities and unpaid property taxes attaching to the property. When you buy a foreclosure home, you'll also be accepting such liens, liabilities and taxes. If you're not aware of these before you buy... you could be in for a nasty shock. So too, the existence and extent of these should reduce the value of the home, which you should take into account when bidding. Therefore, perform a title search and any other necessary searches to identify any of these.
Tip #4: Know what to bid
Your strategy for monetizing the foreclosure will affect how much you should bid for it at the auction. In other words, how do you plan to achieve a return on your investment? Will you make cosmetic changes to the property and sell it shortly after buying? Will you rehab it and then rent it out or sell it? Calculate your expected return and determine your maximum bid accordingly. Just be sure to take into account the possibility that the property has more problems than may have appeared at first... and have a Plan B... and C.
Tip #5: Be prepared to pay a deposit
In most cases, you'll need to pay a deposit on a property you buy at auction. This is often 10 percent of the winning bid price and must be paid on the day of the auction in the form of certified funds. In some states you will need to pay the balance of the purchase price on the day of the auction; in other states, you'll have 30 days to pay the balance. Be clear on the rules that apply to the auction in question and make sure you have what you need in terms of a deposit.
Tip #6: Stay rational
A foreclosure auction can be fast-paced and intense. It can be easy to get caught up in a "bidding war". Don't! Stay calm and rational, and stick to your plan. Only bid on the properties you have decided to buy and don't bid any more than the maximum you previously decided to pay.
Please also see www.foreclosurespotlight.com
Buying Foreclosure Properties At Auction
Properties that are not sold during pre-foreclosure inevitably end up being offered for sale at a trustee sale or public auction. If you don't wish to negotiate with sellers during the pre-foreclosure stage - or otherwise wish to invest in properties being auctioned - here are some useful hints and tips for buying at such an auction.
Firstly, I urge you to observe a few auctions before buying at one. The newspaper will publish notices containing the dates and times of various foreclosure auctions. Go and attend some of these to get an idea of what is involved.
Some of the things to note are the process of the auction, how to register as a bidder, the requirements regarding paying for a property (e.g. whether you need a cashiers check or certified funds on auction day and when you must pay the balance), and how professional - and inexperienced - bidders handle the bidding.
When you decide to participate in an auction, the main thing is to stick to your budget and not get caught up in the emotion and excitement of the auction proceedings. A representative from the bank will typically make a bid that covers the mortgage. From here, the bids will go either two ways. Up or nowhere.
Assuming that the bids go up, and you keep to the maximum amount you're willing to pay, you may or may not end up purchasing the property. If you don't end up getting it, don't worry too much about missing out. You win some, you lose some! At the very least it is a learning experience. And if you have done your figures right, you have probably avoided getting yourself into a dud deal.
Meanwhile, auctions are still great places to network with other investors and foreclosure real estate agents, which is bound to assist your business long term.
If you do end up buying a property, then - depending on where you live - you should be aware of the concept of "redemptive rights". In certain states, within a specified period of time - from a few days to a year - the person whose property was foreclosed has the right to re-purchase the property.
If these rights apply in your state, be very wary of bidding a high amount, let alone spending a lot of money, on a property you buy at auction. The last thing you want is to spend a lot on improving the property only to have it bought back. While you will be paid for the property and such improvements, you probably won't make a profit. Considering that you could have invested your money, time and resources elsewhere, this is a huge opportunity cost to be avoided.
If no one bids on the property at the auction, the bank will be forced to buy the home. In this case, the home becomes "real estate owned" (REO) and anyone who wants the property will need to negotiate directly with the bank.
www.foreclosurespotlight.com
Firstly, I urge you to observe a few auctions before buying at one. The newspaper will publish notices containing the dates and times of various foreclosure auctions. Go and attend some of these to get an idea of what is involved.
Some of the things to note are the process of the auction, how to register as a bidder, the requirements regarding paying for a property (e.g. whether you need a cashiers check or certified funds on auction day and when you must pay the balance), and how professional - and inexperienced - bidders handle the bidding.
When you decide to participate in an auction, the main thing is to stick to your budget and not get caught up in the emotion and excitement of the auction proceedings. A representative from the bank will typically make a bid that covers the mortgage. From here, the bids will go either two ways. Up or nowhere.
Assuming that the bids go up, and you keep to the maximum amount you're willing to pay, you may or may not end up purchasing the property. If you don't end up getting it, don't worry too much about missing out. You win some, you lose some! At the very least it is a learning experience. And if you have done your figures right, you have probably avoided getting yourself into a dud deal.
Meanwhile, auctions are still great places to network with other investors and foreclosure real estate agents, which is bound to assist your business long term.
If you do end up buying a property, then - depending on where you live - you should be aware of the concept of "redemptive rights". In certain states, within a specified period of time - from a few days to a year - the person whose property was foreclosed has the right to re-purchase the property.
If these rights apply in your state, be very wary of bidding a high amount, let alone spending a lot of money, on a property you buy at auction. The last thing you want is to spend a lot on improving the property only to have it bought back. While you will be paid for the property and such improvements, you probably won't make a profit. Considering that you could have invested your money, time and resources elsewhere, this is a huge opportunity cost to be avoided.
If no one bids on the property at the auction, the bank will be forced to buy the home. In this case, the home becomes "real estate owned" (REO) and anyone who wants the property will need to negotiate directly with the bank.
www.foreclosurespotlight.com
Foreclosures vs Regular Properties
There are foreclosure properties and regular properties to choose from; both can be great investments. However, due to some key differences between these two kinds of property investments, one may suit you more. Lets take a look at some of these differences...
1. Discount vs Hassle
The whole attraction of foreclosures lies in the ability to get them for a significant discount on their market value. You can sometimes get up to 50% off the value of a home. On the flip side, foreclosure properties often come with a lot of hassles too. They need work... they may come with liens and unpaid taxes... and there are certain legal procedures to deal with in order to buy them.
2. Need To Sell vs Want To Sell
Owners of homes that are subject to foreclosure proceedings need to sell their property. If they have just received a notice of default from their lender they will have a certain time frame in which to sell the property before it goes into formal foreclosure. This gives you, as a property investor, bargaining power. Unfortunately, such home owners also tend to be emotional, reluctant sellers who can be difficult to deal with. They may not even do what's in their own best interests! Vendors of regular properties, on the other hand, want to sell their homes. That often makes them easier to deal with, as the only issue will really be the terms of the sale... not whether or not to sell.
3. State of property
Many foreclosed homes have been left in a less than ideal condition and need substantial repairs and renovations. More so than with most regular properties, foreclosures are often best monetized as "fixer uppers". Having said that, just because a home owner has defaulted on their mortgage doesn't mean their property is in disrepair. Nor does it follow that someone who is voluntarily selling their home has looked after their property. It's ultimately up to you which kind of property to invest in, and whether or not you want to invest in a fixer-upper.
There are also other differences between foreclosure investments and other kinds of properties. However, these are definitely major considerations when deciding which kind of property investment to specialize in. Keep in mind, though, that there’s no reason why you can’t tackle both. In particular, the market moves in cycles. At certain times there will be better opportunities in foreclosures than regular properties, and at other times the reverse will be true. So by being open to both, you will give yourself more investment opportunities.
As always for more information on foreclosures at www.foreclosurespotlight.com
1. Discount vs Hassle
The whole attraction of foreclosures lies in the ability to get them for a significant discount on their market value. You can sometimes get up to 50% off the value of a home. On the flip side, foreclosure properties often come with a lot of hassles too. They need work... they may come with liens and unpaid taxes... and there are certain legal procedures to deal with in order to buy them.
2. Need To Sell vs Want To Sell
Owners of homes that are subject to foreclosure proceedings need to sell their property. If they have just received a notice of default from their lender they will have a certain time frame in which to sell the property before it goes into formal foreclosure. This gives you, as a property investor, bargaining power. Unfortunately, such home owners also tend to be emotional, reluctant sellers who can be difficult to deal with. They may not even do what's in their own best interests! Vendors of regular properties, on the other hand, want to sell their homes. That often makes them easier to deal with, as the only issue will really be the terms of the sale... not whether or not to sell.
3. State of property
Many foreclosed homes have been left in a less than ideal condition and need substantial repairs and renovations. More so than with most regular properties, foreclosures are often best monetized as "fixer uppers". Having said that, just because a home owner has defaulted on their mortgage doesn't mean their property is in disrepair. Nor does it follow that someone who is voluntarily selling their home has looked after their property. It's ultimately up to you which kind of property to invest in, and whether or not you want to invest in a fixer-upper.
There are also other differences between foreclosure investments and other kinds of properties. However, these are definitely major considerations when deciding which kind of property investment to specialize in. Keep in mind, though, that there’s no reason why you can’t tackle both. In particular, the market moves in cycles. At certain times there will be better opportunities in foreclosures than regular properties, and at other times the reverse will be true. So by being open to both, you will give yourself more investment opportunities.
As always for more information on foreclosures at www.foreclosurespotlight.com
Three Things You Must Know Before Investing in Foreclosures
To profitably buy and sell foreclosure properties there are three (3) main things you MUST know. Frankly, you simply won't succeed in this business without knowing them!
1. The relevant law
The foreclosure laws vary from state to state. Not only do these laws govern what mortgagees (lenders) and defaulting mortgagors (the home owners who have defaulted on their loan repayments) may and may not do, but they also limit what you, as a potential foreclosure investor, may and may not do. Therefore, it's essential that you become familiar with the laws in the state in which you are planning to invest.
For example, depending on the state in which a given foreclosure property is located, there may be two ways in which the property may be sold by way of foreclosure.
The first is where the property is sold under the supervision of a court. The sale proceeds will go towards paying the mortgage first, and then to satisfy any other lien holders, and finally to the mortgagor(s).
The second type of foreclosure is a "foreclosure by power of sale." In this case the mortgagee or mortgage holder (i.e. the lender) sells the property without a court's supervision. This approach is legal in most U.S. states, and, because it doesn't require court supervision, is much more expedient. As with a foreclosure under court supervision, the sale proceeds go to the mortgagee first, then any lien holders, and lastly to the mortgagor.
2. The foreclosure process
Based on the laws of the relevant state, you need to understand the foreclosure process. What are the stages of foreclosure? When, and under what conditions, can you buy a foreclosed property? What are your rights, responsibilities and risks in relation to liens, property taxes, repairs and other relevant issues?
3. Market value
Your entire ability to profit on a foreclosed home relies on understanding its market value. Either become an expert at valuing properties in the area you're interested in (the preferred strategy) or hire one (less desirable, but possible if can hire someone who is trustworthy and truly an expert).
Although these three things may seem obvious, it's very easy to make assumptions - for example, that the foreclosure laws in one state are the same as those in another state - that are false and could get you into trouble. Having a thorough command of these three basics, on the other hand, will go a long way to setting you apart from the other property investors you'll be competing with, and place you in good stead to find and invest in promising foreclosure properties.
Learn more about foreclosures on my website www.foreclosurespotlight.com
where you will find more info about my foreclosure e-book that is presently at a discount price. Make it a great day!
1. The relevant law
The foreclosure laws vary from state to state. Not only do these laws govern what mortgagees (lenders) and defaulting mortgagors (the home owners who have defaulted on their loan repayments) may and may not do, but they also limit what you, as a potential foreclosure investor, may and may not do. Therefore, it's essential that you become familiar with the laws in the state in which you are planning to invest.
For example, depending on the state in which a given foreclosure property is located, there may be two ways in which the property may be sold by way of foreclosure.
The first is where the property is sold under the supervision of a court. The sale proceeds will go towards paying the mortgage first, and then to satisfy any other lien holders, and finally to the mortgagor(s).
The second type of foreclosure is a "foreclosure by power of sale." In this case the mortgagee or mortgage holder (i.e. the lender) sells the property without a court's supervision. This approach is legal in most U.S. states, and, because it doesn't require court supervision, is much more expedient. As with a foreclosure under court supervision, the sale proceeds go to the mortgagee first, then any lien holders, and lastly to the mortgagor.
2. The foreclosure process
Based on the laws of the relevant state, you need to understand the foreclosure process. What are the stages of foreclosure? When, and under what conditions, can you buy a foreclosed property? What are your rights, responsibilities and risks in relation to liens, property taxes, repairs and other relevant issues?
3. Market value
Your entire ability to profit on a foreclosed home relies on understanding its market value. Either become an expert at valuing properties in the area you're interested in (the preferred strategy) or hire one (less desirable, but possible if can hire someone who is trustworthy and truly an expert).
Although these three things may seem obvious, it's very easy to make assumptions - for example, that the foreclosure laws in one state are the same as those in another state - that are false and could get you into trouble. Having a thorough command of these three basics, on the other hand, will go a long way to setting you apart from the other property investors you'll be competing with, and place you in good stead to find and invest in promising foreclosure properties.
Learn more about foreclosures on my website www.foreclosurespotlight.com
where you will find more info about my foreclosure e-book that is presently at a discount price. Make it a great day!
How To Get The Best Foreclosure Deals
As you may know, the foreclosure market is hot right now. More and more home owners are failing to meet their loan obligations and, consequently, more properties are going into foreclosure. That means big opportunities for you, so let me reveal how to get the best foreclosure deals...
The first thing to realize is that you're not the only property investor on the lookout for a bargain. Just like you, other foreclosure investors are likely scouring the foreclosure listing sites, looking for a potential investment. But if you take the competition into account, and plan your strategy accordingly, you can get the deals you want.
For example, it's crucial that you act fast. Ideally, you want to be the first to locate a promising property. That's why you really want to try and snap up a property in pre-foreclosure - before it gets to that stage in the foreclosure process where it must be sold via public auction or trustee sale. Therefore, you should be monitoring the latest notices of default listed with the relevant county recorder(s).
If you're one of the first to identify a possible investment property, you have the chance to contact the home owner first. Having said that, don't expect to be the only one contacting them. They will likely receive a bunch of letters, phone calls and personal approaches from other potential buyers.
So how do you stand out? You try a different approach! This might be a creative mail piece and follow up phone call. Or an audio CD, or a bunch of flowers.
Whatever you do - be genuine, not gimmicky. Being genuine and credible is crucial for establishing trust. Which brings me to the next point...
Most home owners going through foreclosure are not only experiencing a lot of stress, but are probably unfamiliar with the foreclosure process. If you can be someone who helps them through this distressing time, you'll have an advantage over everyone else. To this end, be open and helpful, and readily provide them with your background information and credentials in order to build trust.
The next step is to value the home. If you're not fully familiar with the area and the kind of property you're looking at, you may wish to hire a professional appraiser or local real estate expert to assist you. Whether you do it yourself or hire an expert, understanding the market value of the property is crucial for getting the best possible deal.
Finally, to get the best deal you need to persuade the home owner that it's in their best interests to sell the property to you. Often that's true - they are more likely to get a better deal if they sell at pre-foreclosure than at a foreclosure auction. Having said that, it's a good idea to educate them on their options and explain how the deal you're presenting is likely to help them more than if they sell to someone else, or let the foreclosure proceedings continue.
Some of the things you might mention are that, by selling to you, the home owner will avoid foreclosure, save their credit history and get paid for their equity. Of course you need to make sure the deal works for you too... none of this is worth it unless you're confident you can make the return you want!
Connect with more information on foreclosures, www.foreclosurespotlight.com
The first thing to realize is that you're not the only property investor on the lookout for a bargain. Just like you, other foreclosure investors are likely scouring the foreclosure listing sites, looking for a potential investment. But if you take the competition into account, and plan your strategy accordingly, you can get the deals you want.
For example, it's crucial that you act fast. Ideally, you want to be the first to locate a promising property. That's why you really want to try and snap up a property in pre-foreclosure - before it gets to that stage in the foreclosure process where it must be sold via public auction or trustee sale. Therefore, you should be monitoring the latest notices of default listed with the relevant county recorder(s).
If you're one of the first to identify a possible investment property, you have the chance to contact the home owner first. Having said that, don't expect to be the only one contacting them. They will likely receive a bunch of letters, phone calls and personal approaches from other potential buyers.
So how do you stand out? You try a different approach! This might be a creative mail piece and follow up phone call. Or an audio CD, or a bunch of flowers.
Whatever you do - be genuine, not gimmicky. Being genuine and credible is crucial for establishing trust. Which brings me to the next point...
Most home owners going through foreclosure are not only experiencing a lot of stress, but are probably unfamiliar with the foreclosure process. If you can be someone who helps them through this distressing time, you'll have an advantage over everyone else. To this end, be open and helpful, and readily provide them with your background information and credentials in order to build trust.
The next step is to value the home. If you're not fully familiar with the area and the kind of property you're looking at, you may wish to hire a professional appraiser or local real estate expert to assist you. Whether you do it yourself or hire an expert, understanding the market value of the property is crucial for getting the best possible deal.
Finally, to get the best deal you need to persuade the home owner that it's in their best interests to sell the property to you. Often that's true - they are more likely to get a better deal if they sell at pre-foreclosure than at a foreclosure auction. Having said that, it's a good idea to educate them on their options and explain how the deal you're presenting is likely to help them more than if they sell to someone else, or let the foreclosure proceedings continue.
Some of the things you might mention are that, by selling to you, the home owner will avoid foreclosure, save their credit history and get paid for their equity. Of course you need to make sure the deal works for you too... none of this is worth it unless you're confident you can make the return you want!
Connect with more information on foreclosures, www.foreclosurespotlight.com
The Top 3 Profit Opportunities in Foreclosure Investing
Properties in foreclosure present excellent opportunities to buy properties for much less than their market value. What many property investors don't know is that there are actually three (3) main opportunities to profit from foreclosed properties, based on the stage of the foreclosure process.
The three stages of foreclosure are based on when the foreclosed home or property is for sale. They are: pre-foreclosure, auction or trustee sale, and repossessed or real estate owned (REO).
1. Pre-Foreclosure
A property is in pre-foreclosure when the property owner has failed to meet their mortgage repayments and the bank (or other lender) sends them formal notification that it will repossess the property if they don't repay the outstanding debt by a certain date.
Since banks make their money by charging interest on the loans they provide, they generally view repossession as a last resort. If they believe that the home owner is likely to repay the owed amounts, they may even renegotiate the terms of the loan. However, with more and more people facing "reset" interest rates they can't afford and consequently defaulting on their repayments, banks are unlikely to be particularly accommodating.
Of course, if you can spot a property in pre-foreclosure, then, as an investor, you have the chance to step in and offer to help the home owner by purchasing their home. This will actually stop the foreclosure process and is a great opportunity for you, as you can buy the property without much risk, possibly no liability, and perhaps even without the need for a down payment or loan. You just need to be aware of the mortgage(s), liens and any judgments that attach to the property when you buy it.
The other great advantage of buying a pre-foreclosed home is that if you identify one early enough, you may not have as much competition for the deal as in, for example, the next stage of the foreclosure process...
And the next stage is... when the property goes up for auction.
2. Public Auction / Trustee Sale
Basically, unless the foreclosed home has been sold during pre-foreclosure, it will be sold to the highest bidder at a public auction (or trustee sale). The bank wants to get the property off its books and is generally keen to sell the home and recover its money. So, again, if you're familiar with market values, this is a chance to buy a home at a deep discount to its market value. Just be aware that if you buy a property at a public auction you'll be getting it at whatever condition it's in.
3. Real Estate Owned
If there are no bids on a foreclosed home at auction, the bank is forced to buy the property. This is known as the real estate owned (REO) or repossession ("repo") stage. Now, if you want to buy the home, you need to negotiate a deal with the bank, typically through a realtor. Although the bank is more likely to drive a harder bargain at this point, it will still be keen to get the property off its books. Therefore, you can still negotiate a good deal for yourself.
To learn more go to www.foreclosurespotlight.com
The three stages of foreclosure are based on when the foreclosed home or property is for sale. They are: pre-foreclosure, auction or trustee sale, and repossessed or real estate owned (REO).
1. Pre-Foreclosure
A property is in pre-foreclosure when the property owner has failed to meet their mortgage repayments and the bank (or other lender) sends them formal notification that it will repossess the property if they don't repay the outstanding debt by a certain date.
Since banks make their money by charging interest on the loans they provide, they generally view repossession as a last resort. If they believe that the home owner is likely to repay the owed amounts, they may even renegotiate the terms of the loan. However, with more and more people facing "reset" interest rates they can't afford and consequently defaulting on their repayments, banks are unlikely to be particularly accommodating.
Of course, if you can spot a property in pre-foreclosure, then, as an investor, you have the chance to step in and offer to help the home owner by purchasing their home. This will actually stop the foreclosure process and is a great opportunity for you, as you can buy the property without much risk, possibly no liability, and perhaps even without the need for a down payment or loan. You just need to be aware of the mortgage(s), liens and any judgments that attach to the property when you buy it.
The other great advantage of buying a pre-foreclosed home is that if you identify one early enough, you may not have as much competition for the deal as in, for example, the next stage of the foreclosure process...
And the next stage is... when the property goes up for auction.
2. Public Auction / Trustee Sale
Basically, unless the foreclosed home has been sold during pre-foreclosure, it will be sold to the highest bidder at a public auction (or trustee sale). The bank wants to get the property off its books and is generally keen to sell the home and recover its money. So, again, if you're familiar with market values, this is a chance to buy a home at a deep discount to its market value. Just be aware that if you buy a property at a public auction you'll be getting it at whatever condition it's in.
3. Real Estate Owned
If there are no bids on a foreclosed home at auction, the bank is forced to buy the property. This is known as the real estate owned (REO) or repossession ("repo") stage. Now, if you want to buy the home, you need to negotiate a deal with the bank, typically through a realtor. Although the bank is more likely to drive a harder bargain at this point, it will still be keen to get the property off its books. Therefore, you can still negotiate a good deal for yourself.
To learn more go to www.foreclosurespotlight.com
What Is Foreclosure Investing? Part 2
Here is the second part of this article on What exactly is Foreclosure Investing. We left off with the the laws differ from state to state, but there are two ways in which a property is typically sold by way of foreclosure.
The first is where the property is sold under the supervision of a court. The sale proceeds go towards paying the mortgage first, and then to satisfy any other lien holders (i.e. anyone else with certain ownership rights over the property), and finally to the mortgagor(s) (i.e. the people who borrowed the loan - in this case Tom and Sarah).
The second type of foreclosure is a "foreclosure by power of sale." In this case the mortgagee or mortgage holder (i.e. the lender) sells the property without a court's supervision. This approach is legal in most U.S. states, and, because it doesn't require court supervision, is much more expedient. As with a foreclosure under court supervision, the sale proceeds go to the mortgagee first, then any lien holders, and lastly to the mortgagor.
In either case, there is a public auction and the property is sold to the highest bidder.
Now, although Tom and Sarah - as mortgagors - should theoretically get a share of the sale proceeds, it's not often that mortgagors make much profit from a foreclosure sale! In fact, the whole process is likely to be pretty tough on them. So all this is rather bad news for Tom and Sarah... but let's just hope they can find a less expensive home where they can afford the repayments.
However, for an astute real estate investor - like YOU - foreclosure sales often present fantastic opportunities to profit! Basically, this is because the properties being foreclosed are typically sold for MUCH less than their market value.
One of the main reasons for this is that banks' and other lenders' are chiefly motivated to get rid of these properties, and recover whatever amounts of money they can for them, as soon as possible. They don't necessarily want, nor do they have the time or know-how, to extract the maximum sales price for a given property.
This is great news for the foreclosure investor. Even better is that, right now, with foreclosure rates higher than they've been for many years, there are more and more opportunities for you to make significant profits from foreclosure sales.
For more information about the foreclosures please go to www.foreclosurespotlight.com
The first is where the property is sold under the supervision of a court. The sale proceeds go towards paying the mortgage first, and then to satisfy any other lien holders (i.e. anyone else with certain ownership rights over the property), and finally to the mortgagor(s) (i.e. the people who borrowed the loan - in this case Tom and Sarah).
The second type of foreclosure is a "foreclosure by power of sale." In this case the mortgagee or mortgage holder (i.e. the lender) sells the property without a court's supervision. This approach is legal in most U.S. states, and, because it doesn't require court supervision, is much more expedient. As with a foreclosure under court supervision, the sale proceeds go to the mortgagee first, then any lien holders, and lastly to the mortgagor.
In either case, there is a public auction and the property is sold to the highest bidder.
Now, although Tom and Sarah - as mortgagors - should theoretically get a share of the sale proceeds, it's not often that mortgagors make much profit from a foreclosure sale! In fact, the whole process is likely to be pretty tough on them. So all this is rather bad news for Tom and Sarah... but let's just hope they can find a less expensive home where they can afford the repayments.
However, for an astute real estate investor - like YOU - foreclosure sales often present fantastic opportunities to profit! Basically, this is because the properties being foreclosed are typically sold for MUCH less than their market value.
One of the main reasons for this is that banks' and other lenders' are chiefly motivated to get rid of these properties, and recover whatever amounts of money they can for them, as soon as possible. They don't necessarily want, nor do they have the time or know-how, to extract the maximum sales price for a given property.
This is great news for the foreclosure investor. Even better is that, right now, with foreclosure rates higher than they've been for many years, there are more and more opportunities for you to make significant profits from foreclosure sales.
For more information about the foreclosures please go to www.foreclosurespotlight.com
What is Foreclosure Investing? Part 1
Today in Part 1 we talk about foreclosures and an example to help simplify the process with Tom and Sarah.
As a property investor, foreclosures can provide you with incredible opportunities to buy and profit from undervalued properties. But what exactly is a foreclosure and how do you invest in one? In this article, I'll give you an overview of what foreclosure investing is... and why you should be interested - very interested - in getting involved in this hot area of the property market.
Let's set the scene by explaining a typical home purchase in America today. Let's say Tom and Sarah want to buy a home. They've saved a down payment and found their dream home. Their local bank is willing to lend the rest of the purchase price (let's say 85%), provided Tom and Sarah repay the loan in monthly payments of principal (the amount they borrowed) and interest (based on the bank's lending rate) over a certain period of time i.e. 20, 25 or 30 years, now even 40 years.
So Tom and Sarah meet their monthly repayments and eventually own their home outright and all is well...
But what if...
...they can't meet their repayments?
What if, after having their interest rate kept low for the first year or so, it's "reset" to a higher rate... that's just too high?
And what if, based on their financial circumstances, Tom and Sarah can't afford their monthly repayments?
Well, unless they can establish a less tedious arrangement with the bank... the bank probably isn't going to be too happy with Tom and Sarah!
And if it's like many (if not most) banks it's probably going to start foreclosure proceedings. Basically, these are the legal proceedings whereby a bank can repossess, and then sell, a defaulting mortgagor's property.
The laws differ from state to state, but there are two ways in which a property is typically sold by way of foreclosure.
Next blog post we will talk about those 2 ways so make sure to come back for Part 2 of this article.
Have a great day,
Rosanne
As a property investor, foreclosures can provide you with incredible opportunities to buy and profit from undervalued properties. But what exactly is a foreclosure and how do you invest in one? In this article, I'll give you an overview of what foreclosure investing is... and why you should be interested - very interested - in getting involved in this hot area of the property market.
Let's set the scene by explaining a typical home purchase in America today. Let's say Tom and Sarah want to buy a home. They've saved a down payment and found their dream home. Their local bank is willing to lend the rest of the purchase price (let's say 85%), provided Tom and Sarah repay the loan in monthly payments of principal (the amount they borrowed) and interest (based on the bank's lending rate) over a certain period of time i.e. 20, 25 or 30 years, now even 40 years.
So Tom and Sarah meet their monthly repayments and eventually own their home outright and all is well...
But what if...
...they can't meet their repayments?
What if, after having their interest rate kept low for the first year or so, it's "reset" to a higher rate... that's just too high?
And what if, based on their financial circumstances, Tom and Sarah can't afford their monthly repayments?
Well, unless they can establish a less tedious arrangement with the bank... the bank probably isn't going to be too happy with Tom and Sarah!
And if it's like many (if not most) banks it's probably going to start foreclosure proceedings. Basically, these are the legal proceedings whereby a bank can repossess, and then sell, a defaulting mortgagor's property.
The laws differ from state to state, but there are two ways in which a property is typically sold by way of foreclosure.
Next blog post we will talk about those 2 ways so make sure to come back for Part 2 of this article.
Have a great day,
Rosanne
Why foreclosure investing is going to be...
...the Biggest mullah maker ever...
Finally a simple proven step by step systemthat allows anybody with the desire to learna way to the pot of gold in the foreclosure market.
No cash
No credit
No Experience needed
Learn how You can begin profiting from all theseforeclosures around YOU.
get over to: www.foreclosurespotlight.com
Finally a simple proven step by step systemthat allows anybody with the desire to learna way to the pot of gold in the foreclosure market.
No cash
No credit
No Experience needed
Learn how You can begin profiting from all theseforeclosures around YOU.
get over to: www.foreclosurespotlight.com
Subscribe to:
Posts (Atom)
