I wanted to draw your attention to the several articles that I have written that I would like to share with you.

My latest article comes from experiences I have had in the real estate trenches.

Here is the start of the article here, but I invite you to check out other articles I have written over the last year or so.

4 Tips from the Real Estate Trenches

In the beginning of my real estate career, I bought 2 properties in one year. My first property was a duplex followed by the second property that was a 4plex. I would like to share with you how they were completely opposite of each other as far as deals go, even though I got a great price for both of them. You see, my first deal was the duplex and it was fairly easy to purchase, no real rehab needed, the property came with tenants in place and immediate cash flow. My next purchase was a 4plex that was gutted and needed quite a bit of work. Yet, I used the same mentality with both purchases and made a few mistakes along the way. Here are my tips for you so you can avoid this kind of a situation altogether.

Read the rest of this article and other articles by going here

http://budurl.com/RosanneArticles

Building Your Business with Proper Tools

As you know when you start your real state business you need proper tools to grow your business even further.

An example of the proper tools would be:

Websites, auto responders, business cards, marketing tools, etc...

So let’s take websites for example, you have to find a proper domain name for what type of business that you are doing like real estate. You need to set up your website and either have to get a webmaster to develop your website or do it yourself if you are talented in this area. Then when you are ready you will need to host your site on the web so you can drive traffic to your site.

I have uncovered a few great hosting sites that I would like to share with you. These sites would be recommended once your website is ready. I wanted you to know about them so you can take advantage of these excellent offers. There are multiple hosting sites for you to pick from and to match up with your needs at this point in your business. Please feel free to check it out by going here: http://webtoolbox.hosting303.com

I hope this helps you with your websites so you can get your business up and running faster.

Keep moving forward.

Rosanne

Wow! We are half way through 2009!

It just seemed like I was saying goodbye to 2008 and now we are already half way through 2009. It was not my intent to let that much time go by without posting anything.

Part of the reason has been just me being plain busy looking at real estate deals and trying to work on my real estate business. There has never been a better time to buy and get some good deals under your belt. If you are on the sidelines I highly encourage all of you to get in and get involved.

This is not a scary time to invest, although the media would love for you to think that way!! This is a great time to invest, with all the good deals. You can easily pick up a good cash flowing deal and maybe even put it on a credit card.

Yes you heard me right. A credit card because of the way the market has been. But things are already starting to turn around in this year. It will be slow but I feel like the market is doing a subtle tick up right now, seeing prices inch up in the Atlanta area.

Some of you that have been following me for awhile know that I have been working with Mark Evans DM. Mark has been my mentor over the last 2 1/2 years. I have been helping him with doing follow up with investors on his list for the last 6 months.

Mark has some great deals right now in Atlanta. If you can buy with money from your self directed IRA, savings account, or even money you have been putting away in coffee cans in your pantry, you can actually make some outstanding cash flow. These are single family homes can be purchased from $25,000 to $35,000.
Some even with the rehab will equal out to $35,000 depending on which property.

Cash flow depending on what property and in what area, can be around $600 to $700/month. You know that is a great return on your investment for a single family property. Occasionally we get duplexes which adds to that value.

If you would like more info on the properties in Atlanta, GA please contact me and I would be happy to see if I can help. I can send you information on what we have right now.

Don't wait too long because these properties won't be around for long and the prices will start to go back up.

Let me know if you would like property info and lets get you started on your cash machine, drop me an email at rcellini@gmail.com.

Have a great day and as always keep moving forward.
Rosanne

The Company We Keep

Updated Novemeber 26, 2008
Since we are on the subject of the keys to success, I wanted to include this little snippet of info. I think its important to mingle with the right people.

What I mean here is surrounding yourself around positive and like minded individuals who are wanting to go places just like you! I think the more we hang around people who are successful, chances are you will have some of that success rub off on you. Because it causes you to stretch.

In the last few months I have challenged myself to a different level. I feel like I am making steps forward because of the company I have started to keep and also who I talk on the phone to.

I had an opportunity just a couple of months ago to be at a great seminar. This was not your ordinary seminar where you are in a room with hundreds of people. No, this was no more than about 45 people in a room learning from 2 very great coaches. I was very impressed with this style of learning. I think everyone should have mentoring on this level if at all possible.

Here is a picture with one of those coaches that was teaching that day. Mark Evans DM has been my mentor coming up on 2 years and I have to say that I have made some serious progress with his mentoring. He has also become a great friend. You should check it out if you get a chance. Please contact me if you would like to know more about the Ultimate Real Estate Lifestyle Experience!

Have an outstanding day! Keep moving forward always,
Rosanne Cellini
rcellini@gmail.com

P.S. Below is the other coach that was there teaching at the event. You may recognize him, its Ed Zimbardi. I know I will be learning a lot from him as well.

One of the Keys to Success! Systems!

Over the last few weeks I have written to the people
on my list and have asked what is happening in their
real estate business.

Well, the response I got was overwhelming in
wanting to know about products or courses in
real estate that I would recommend.

One course I will tell you about here in just
a minute has helped me generate buyer, seller
leads continuously. Its a course that helps
you put together simple systems to help you
build your business even while you are asleep.

The system I am talking about is exactly the
opposite in which other courses and real estate
guru's teach you about.

If you would like to get a simple system to
attract buyers and sellers into your pipeline
and move you toward closing the deal, then you
need to get this product now.

Remember, this is the exact system that I have
used and do use presently in my real estate
business. Its made a ton of difference for me.

Here is where you need to go to to start
implementing this simple system and get you
closer to the money$$....get over to
http://foreclosurespotlight.com/presents/reverse

Keep moving forward every day!
Thanks,
Your Friend,
Rosanne Cellini
www.foreclosurespotlight.com

We Are Bouncing Up and Down!

Wow! Hasn't the stock market been on one big ride? I am amazed at what has been happening with the market in general. The other day it went up by 900+ points only to slide back down! Its truly a very volitile time especially if you are in the stock market.

I am presently not active in the stock market. I am doing some other business and real estate deals since I opened up my self directed IRA! I am glad I did open that account a few months back. I have my money invested mostly in real estate out of my IRA. I highly recommend you look into opening an account and the needed info to get you started.

I just got back from my Oklahoma trip last week and it was a productive one. However, you always have more to do. Since I have been back the last couple of days I have more requests for properties from some big pocketed investors.

Right now, I am on the look out for some commercial properties. They can be apartment buildings, shopping centers, anything that is commercial and also cash flowing. It doesn'tmatter where it is and the price has no cap. If you have something that matches up with these parameters, drop me an email and please let me know what you got so we can determineif we can go to the next level.

As I close this entry in my blog, I saw another good quote today from Dale Carnigie, famous author.

"Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy."

Lets make it a productive week and keep movingforward. I look forward to hearing back from you, if you have any commercial properties or if you have any questions and/or comments.
Thanks and have a great day
Your friend,
Rosanne Cellini
http://www.foreclosurespotlight.com/

P.S. Are you interested in getting a home based business started and start to generatemultiple streams of income plus be involved in real estate? Please go to http://www.creativelyfinancedhomes.com/

P.S.S. We still have property package deals still available, please contact me if you are interested.

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

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

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 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

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

Doom & Gloom or Growing & Thriving?

Once again I have to comment about the
doom and gloom still being painted on
the real estate investing world offline
and online...But yet at the same time
you hear about information that I am
about ready to share with you in just
a minute, and it makes you wonder?
Which leads me to believe that all
this doom and gloom should be kept
in perspective and looked at in the
whole picture not just one part.

You may or may not have seen some
statistics last week about the fastest
growing cities. I actually saw it in
a couple of different places for I
usually view emails and/or websites with
this type of info periodically to keep
my knowledge current.

Here is a recap of the info I found:

10 Fastest Growing U.S. Cities
The fast-growing areas in the United
States are in the Sunbelt, with Texas
leading the way, according to data
released today by the U.S.Census Bureau.

Dallas-Fort Worth added more than 162,000
residents between July 2006 and July 2007,
more than any other metro area. Three
other Texas cities -- Houston , Austin ,
and San Antonio -- also were in the top 10.

Experts credit much of the growth in the
South to strong local economies and housing
prices that are among the most affordable
in the United States .

A report earlier this month by Global
Insight found that housing prices in the
Dallas area were undervalued by as much
as 30 percent.

Other areas experiencing growth included
the New Orleans area, which is recovering
from Hurricane Katrina and grew by 4 percent
or nearly 40,000 people. During the same
survey last year, the population of New
Orleans dropped by nearly 290,000 people.

Meanwhile, Detroit lost more than three
times as many people as any other metro
area -- its population declined more than
27,300. Other areas losing more than
5,000 people were Pittsburgh, Cleveland,
Columbus, Ga.,Youngstown,Ohio,and Buffalo,N.Y.

The 10 biggest gainers:

Dallas-Fort Worth-Arlington,TX: 162,250
Atlanta-Sandy Springs-Marietta,Ga: 151,063
Phoenix- Mesa- Scottsdale, AZ: 132,513
Houston-Sugar Land-Baytown,TX: 120,544
Riverside-San Bernardino-Ontario,CA: 86,660
Charlotte-Gastonia-Concord,N.C-S.C.: 66,724
Chicago-Naperville-Joliet,IL.-Ind.-WS.: 66,231
Austin-Round Rock, TX: 65,880
Las Vegas-Paradise, NV : 59,165
San Antonio, Texas: 53,925

The 10 fast-growing metro areas

Palm Coast, Fla.: 7.2 percent
St. George, Utah: 5.1 percent
Raleigh-Cary, N.C.: 4.7 percent
Gainesville, Ga.: 4.5 percent
Austin-Round Rock, Texas : 4.3 percent
Myrtle Beach-Conway- N.C.-Myrtle Beach, S.C.: 4.2 percent
Charlotte-Gastonia-Concord,N.C.-S.C.: 4.2 percent
New Orleans- Metairie-Kenner,La.: 4 percent
Grand Junction, Colo.: 3.7 percent
Clarksville, Tenn.-Ky.: 3.7 percent

Source: The Associated Press, Paul J. Weber
(03/27/08)

So, always be on the alert, look
for those opportunities and take action.

Make it a great day!

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

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

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

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

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

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

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

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!