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7 Big Reasons To Invest In Pre Foreclosures
ooking for an "in" to real
estate investing?
Well, you can get all that
together if you want. It doesn't
Working a nine to five job hurt to have those resources. But
swapping time for money can be it's not necessary to have a huge
incredibly dispiriting. After the pile of cash and perfect credit
futility of it all hits home, to buy a house cheap and resell
it's all you can do to limit the it for a profit.
number of home business
opportunities you investigate to It's especially not necessary in
twenty per week. the preforeclosure market.
Preforeclosures are houses in the
One of the more compelling home default phase of foreclosure;
business opportunities is real where the bank has filed initial
estate investing. Real estate foreclosure papers but the
investing is the perennial wealth Sheriff Sale or Trustee Sale
builder, and the transition from where the bank auctions off the
working a job to achieving wealth property, or repossesses it if
through real estate investing is no-one buys at the auction,
becoming increasingly well hasn't occurred yet.
documented.
Buying during the preforeclosure
You've probably thought about period is one of the best ways
investing in real state yourself for anyone to get involved in
but you've not gone for it real estate investing. With
because you thought you needed little more than a few hundred
tens of thousands in savings for dollars and some specialized
a down payment, and perfect knowledge you can buy a house at
credit along with strong banking a substantial discount and resell
relationships. it retail picking up a five
figure profit check in the develop focused marketing
process. campaigns and standardized
processes to get deals completed
Don't believe it? and closed.
Well, let me give you seven 3) One of the fundamentals of
reasons why it's true: real estate investing is
contacting and talking "only" to
1) When people are in default on motivated sellers, and avoiding
their mortgage they have stopped all the rest. Sellers in
making payments to the bank. So preforeclosure are some of the
when you are negotiating with the most motivated sellers you will
seller, and the bank, right up find. Their world has been turned
until the point where you buy, upside-down, they are about to
no-one is making the payments. lose their house, and their
For novice investors worried motivation is such that they just
about holding costs this is a want out of the house and the
huge advantage. bank off their back. By buying
houses from people in
2) Preforeclosures are a very preforeclosure, creating 30%+
well defined niche market. One of equity spreads on houses often in
the most deadly mistakes rookie good condition is not a difficult
investors make is trying to be a thing to do.
jack-of-all-trades, going after
any and everything they can lay 4) Buying houses in
their eyes on. The result of this preforeclosure enables you to
lack of focus is they are soon create unusually large equity
back at their jobs. By being a spreads. Recent economic
very defined market, uncertainty has caused a lot of
preforeclosures allow you to foreclosures, and rising rates
will cause more in coming years. great many people from getting
If banks had to take back all of into real estate. On top of that,
the properties that went into if you do get a bank loan, your
foreclosure the FDIC would shut financial exposure is at it's
them down. They know this, so maximum when everything is in
they try not to take properties your own name and personally
back they don't have to. By guaranteed. Buying houses in
requesting the Lender discount preforeclosure allows you to
what is owed on their payoff, simply take over the existing
large spreads of equity can be financing already in place. No
created on houses that are qualifying needed. You can take
totally "maxed out" with loans. title to the property in a Land
This can't be done on loans not Trust, begin making payments on
in default. the existing mortgage(s), and
still get all the tax advantages,
5) Because Lenders are under appreciation, depreciation
pressure to liquidate bad loans without any of the risk of being
rather than take the property personally liable for the
back, large discounts can be mortgage and the property.
negotiated. After becoming
familiar with the issues that 7) If you have ever bid at
cause Lenders to discount, larger auction for property at the
and larger discounts can be courthouse steps, you are only
achieved as you hone your too aware of the competition
negotiating skills. breathing down your neck. Lots of
mind games. The 40 thieves are
6) If your plan is to buy and talking trash to you trying to
hold the property, having good get you not to bid. If you are
enough credit and financials to Larry Bird, no problem. Make sure
get bank financing excludes a you have $500K on your credit
line though. However if you are profits in real estate investing.
not the 'Bird' and you don't pack But when you look at how easy
half a mil' of credit, you can preforeclosure makes it to buy
sneak in and avoid this NBA houses cheap and resell for five
showdown by buying the house figure profit checks, all the
during the preforeclosure while helping people out of
period... before the auction. agonizing life circumstances, it
makes little sense to pursue real
Make no mistake about it, there estate investing any other way.
are many ways to make healthy
About the Author:
Ben Innes-Ker is a father, best-selling author, and real estate investing warrior. He has developed the "Foreclosure Investing Letter" to help real estate entrepreneurs buy foreclosures with less effort and higher profits. To receive your 5 part mini-course that reveals real estate investing basics anyone can use to achieve this too, visit: http://www.the-foreclosure-investing-letter.com/
Source: www.isnare.com
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