Make Your Fortune in Real Estate With Foreclosure Investing
Posted on February 4, 2009
Filed Under foreclosure investing, foreclosure investment | Leave a Comment
By D.C. Fawcett, Business Building Coach to the Foreclosure Industry
From owning rental properties, to fixing up properties in disrepair, to foreclosure investing, real estate is a bright light in the current gloom of the overall economy. Sure, people are out there losing homes and we wouldn’t wish that upon anyone. That said, these situations create opportunities for investors and also a chance to help someone who needs a solution to their problems.
In short, there has possibly never been a better time to pursue real estate and foreclosure investing is an excellent opportunity in today’s market.
With respect to foreclosure investing, where do most people turn when they seek opportunities? They might take a look at foreclosure listings that come from either realtors or other private sources. They can then use these sources of leads to market to preforeclosures, one of the most common forms of foreclosure investing that includes short sales.
Another option with foreclosure investing is the world of bank owned real estate. When a property is lost via foreclosure it goes back to the bank and then becomes one of the now thousands of bank owned foreclosures (or REO properties) on the market today.
The key is to surround yourself with a professional team who can collectively support your efforts in foreclosure investing. With the abundance of preforeclosures and bank owned foreclosures out there, more and more professionals like realtors and attorneys are working with investors who specialize in foreclosure investing. In addition to guidance, these professionals can also provide you with foreclosure listings for your business.
Despite the opportunities that exist with foreclosure investing, I think foreclosure investing also can be risky for the investor because, without the proper foreclosure training, you run the risk of not really knowing what you are doing. Profits can be lost and so too can opportunities that exist with foreclosure investing when you lack the proper foreclosure investing training.
In today’s economy and market, foreclosure investing is as much as part of the real estate business as anything else. Make sure you have the tools you need ready to go for foreclosure investing because the deals are out there. I also suggest that you commit yourself to real estate training, and your pursuit of foreclosure investing will be more productive and more rewarding. I wish you the very best in success in all of your foreclosure investing pursuits and in business as a whole.
Posted on March 10, 2010
Filed Under home foreclosure investing | Leave a Comment
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Posted on March 10, 2010
Filed Under foreclosure investing | Leave a Comment
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Why There Has Never Been a Better Time to Make a Real Estate Investment
Posted on March 8, 2010
Filed Under home foreclosure investing | 6 Comments
The real estate market has done a complete 180 as prices are crashing left and right. Many are wondering if now is the time to get out of real estate investment when in actuality there has never been a better time to make an investment than today.
The only time you have to worry about the real estate market being up or down is if you are considering selling in the short-term. The reason for this is because you obviously want to be able to sell your investment for as much as possible.
If you intend on holding on to the property for some time, then you are going to learn to deal with the constant fluctuations of the market. You have to realize that the market is going to go up at some point in time, which is when you will want to consider selling the home.
The goal is to buy low and sell high. As prices continue to crash every day, it is becoming increasingly easy to purchase rather nice homes at incredible rates. If you are going to get into real estate investing, now is the time because of how low prices are.
All you have to do is look at the foreclosure list and mortgage auctions. You will see that you have a plethora of options to choose from. You will be able to pick and choose and buy properties at rock bottom prices.Â
To make the most of this opportunity, you want to make sure your rental income equals or exceeds your outgoing. In addition, this should include mortgage repayments. There is nothing better than going to sleep knowing the mortgage payments have been taken care of.Â
As you make a real estate investment today, you can sit back and watch as the market turns around over time. It is guaranteed that the market will rise at some point in time. And when the real estate market begins to rise, you can rest assured that your propertyâs value is going to increase.
If you are going to get into real estate investing, there has never been a better time to do so than today. With diligent research and common knowledge about the market, you will be able to profit greatly in the long-run by investing today. It is all about buying low and selling high and with the way the market is today, you will find incredible deals on legitimate homes.Â
Peter Vekselman
http://www.articlesbase.com/real-estate-articles/why-there-has-never-been-a-better-time-to-make-a-real-estate-investment-688083.html
Flipping Real Estate or Flipping Paper?
Posted on March 8, 2010
Filed Under foreclosure investing | 7 Comments
Flipping real estate properties is not for everybody but it is the fastest way to make a buck in the real estate business.
Most everybody has heard of someone buying a “run down” house for a good price well below market value, fixing it up and selling it at a fair market price. Flipping a “fixer-upper” is definitely one way to turn a reasonably quick profit. I know some people who do it this way but they are more into the contractor and renovation business than they are of the investor mindset.
Some of these “fixer-upper” properties are in need of extensive repair and will involve electrical work, carpentry work, etc. If the investor gets involved and does some or all of this work then there could be enough profit there but if the investor farms out the required labour, profits could get eaten up quickly. For these types of flipping real estate investments, the purchase price needs to be at a huge discount and normally would be found somewhere in the foreclosure stage.
For the person that is in the mindset of investing rather than being in the renovation business then flipping real estate will only involve flipping the paper contract of the property without even taking possession of it. You can flip by entering an agreement to buy a property then sell the contract to another investor before close of escrow.
Using this technique won’t even require you to put your name on the title. Profits will generally be less than the fixer-upper investor but involves much less work and the whole process is much quicker. A fixer-upper investor would not be happy in making a profit of a few thousand dollars for a few months work on renovations but an investor that can just flip a contract for a few hours or days work would be.
Avoid disclosure of your profits to the new buyer by using a double closing.
After making a sweet deal and flipping a contract involving a juicy profit you may not want all these details to be revealed to your buyer. The solution is a double closing, transferring the property to you initially and then reselling immediately at the same lawyer’s office just an hour later to your buyer.
There is a drawback here and that is a double set of closing costs so you would have to weigh it out to see if it’s worth it to your particular situation or not. Further, you can use a title insurance company for the actual closings. For the issuance of the title insurance policy, the title insurance company will prepare the closing documents and close the transaction usually without an addition charge.
john ferreira
http://www.articlesbase.com/finance-articles/flipping-real-estate-or-flipping-paper-133606.html
Posted on March 7, 2010
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Posted on March 7, 2010
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Abandoned Properties - One Of The Best Kept Money-Making Secrets - Part 2
Posted on March 6, 2010
Filed Under home foreclosure investing | Leave a Comment
In part one of “Abandoned Properties, One of the Best Kept Money-Making Secrets”, we explored the great profit potential in this unique real estate investing niche. Although some of these properties might be the result of a foreclosure or other distressing event, remember that we’re helping the owner with his/her “house headache” when we invest in an abandoned property.
How Do We Find Abandoned Properties?
Here is one of the easiest ways to find abandoned properties. The first thing to understand is that the more affluent the area is, the fewer the abandons you will find. The less affluent the area, usually the more abandons you will find. I encourage you to find an area somewhere in between the two extremes.
If you keep your eyes open, you will find properties that might have the windows broken out, they might be boarded up, you might see the grass and shrubs overgrown, you might see trash, handbills, newspapers and other signs that this property might be a good candidate for a profitable abandoned property.
Keep a pen and a pad of paper with you at all times. I teach my students to take different routes to and from their normal destinations and write down the addresses of any properties that might be abandon property prospects. This might require that you leave home a little earlier than usual, but it is certainly worth it if it brings you just one abandoned property deal.
Using A Little Known Government Program With An Abandoned Property
Several years ago, I was taking my aunt to an appointment with a dialysis center when I came across an abandoned four unit building. This property showed all the classic signs of abandonment: boarded up windows, tall grass, trash and such. I wrote the address down and called my title company as soon as I got a chance. I gave them the address, and they gave me the owner of the property and the mailing address. I wrote an offer and bought the property for $82,000. We fixed the property up using a little known government program called the Rental Rehab Program to maximize our profits.
This program provided a 3 to 5% loan when the prevailing interest rates were 12% The program also allowed any qualifying tenants to drastically reduce the amount of their out of pocket monthly rent by going on the Section 8 Government Subsidy Program after the rehab was complete. The average wait for the Section 8 Program at the time was 6 to 8 years. This was truly a win-win deal for everyone involved. We kept the property for a number of years, putting a positive cash flow in our pockets every month. We eventually sold the property and made a lot of money.
The Best Financing In the World
With the property needing as much work as it did, it would have been almost impossible to get a conventional bank loan to finance it and, at the time I was in no position to pay all cash. So, what is the solution? As I mentioned before, seller financing is the best financing in the world. The seller of the property financed the entire deal for us.
Here is the point: Abandoned properties are one of the best kept money-making secrets in our industry. They are very good candidates for many of the government loans and grants that can super charge your profits. Tap into this area of real estate and watch your profits soar.
Reggie Brooks
http://www.articlesbase.com/real-estate-articles/abandoned-properties-one-of-the-best-kept-moneymaking-secrets-part-2-741187.html
Finding Real Estate Foreclosures
Posted on March 6, 2010
Filed Under foreclosure investing | 4 Comments
If you are interested in investing in foreclosures you can make a lot of money.
This is one sector of the real estate industry that can be quite profitable if you know what you are doing.
But before you can start to invest in foreclosures you need to know where to find them.
Even though this may sound easy, in some cases you may run into problems. After all, finding foreclosures is not quite as easy as finding homes that are for sale by a real estate agent.
But with that being said there are many places that you can search in order to find foreclosures in your area.
The most common place to check for foreclosures is in the newspaper. Even though you will not find a large selection of foreclosures in the newspaper, you can find a few good properties every so often.
If you are going to search for foreclosures be sure to combine it with another method as well. This way you will be ensured of finding what you want.
Another common way to find foreclosures is to sign up for an online service. For a small fee an online service will allow you to search their database of foreclosures 24 hours a day.
The great thing about foreclosure databases like these is that you can find properties from one side of the country to the next. Just make sure that if you are searching for foreclosures through a service that you are getting what you expect.
There are services out there that do not update their listings regularly. If you are a member you are getting nothing more than old properties that have probably already been sold.
Finally, if you want the best foreclosure listings you should go to your county recorder’s office. Here, you will find information on foreclosures that is updated everyday.
If you are serious about foreclosure investing you will want to make it a habit to head to the county recorder’s office on a regular basis. This way you will find out about foreclosures before the rest of the world. And of course by doing this you give yourself the best chance to make money.
Finding foreclosures is not difficult to do. If you keep an open mind and search all of the options you should not run into any problems. Remember, the more foreclosures that you find, the better chance you have of getting one that best suits your needs. And buying the foreclosures that are best for you is one sure fire way to make more money.
Gerald Mason
http://www.articlesbase.com/real-estate-articles/finding-real-estate-foreclosures-81702.html
Costa Del Sol Holiday Rentals - Why Owners Have Turned to Renting Their Properties
Posted on March 3, 2010
Filed Under foreclosure short sale investing | Leave a Comment
Located on the coast of the Mediterranean South of Spain, lies the region of the Costa del Sol; whose name roughly translates into the English “Coast of the Sun”. Comprising of literally hundreds of towns and villages, the Costa del Sol is a very popular tourist destination and the number of Britons investing in property in this Spanish region has been steadily increasing each year.
That was until the global economy fell and just about everything from the monthly gas bill to stocks and shares has been badly affected since. Of course there are those with an income so high as to not feel the effects but it’s wise for consumers to button their wallets and save, save, save in the upcoming months. What this now means for the Costa del Sol is that Western property owners are stuck with the dilemma of whether they can afford to keep their holiday home on the southern coast of Spain, or whether they should sell it on and save the money for a potential economic crash.
Instead of being stuck in the middle of a very hard decision, many Spanish property owners located in the Costa del Sol have actually chosen to rent out their property, rather than selling it on or keeping it empty during the year for use in the summer. While it might mean a lot of paperwork, it actually brings in steady money to keep the family afloat in times of possible crisis. After all, if there’s a beautiful Spanish property laying empty in the centre of affluent tourist area Costa del Sol then why not take advantage of the market and rent it out?
Luckily for owners who are choosing to rent out a room or the whole property, the tourism industry remains largely unaffected by the ever menacing credit crunch. Experts claim that due to the colourful ideas that travel entrepreneurs come up with, and the growing need for people to ‘get away’ from their financial stresses, the number of people taking holidays won’t be too badly affected.
What it also means is that rather than blowing a fortune on a cruise to Barbados, many families, couples or groups of friends might settle for a fortnight in the Costa del Sol instead. It is an area not too expensive to vacation in, yet one that is just as idyllic. Take Nerja for example; this autonomous coastal town oozes Mediterranean luxury and Spanish culture. Couple that with its ideal location not far from the large city of Malaga and at the other side the Sierra Nevada mountains where tourists love to ski.
Perhaps what isn’t quite clear in the process of renting out holiday properties rather than selling them on is what the future intentions of the property owners are. The majority are looking for some financial security in steady income for the short term, and in the long term are simply hoping that the global property market will pick up. Rather than sell their favorite and most expensive asset, they’re looking to hold onto it either until they are financially comfortable and can retire to the Costa del Sol, or so that they can sell it on for a much higher price. Makes sense, right?
At the moment the market for vacation or holiday property anywhere in the world is very illiquid. That is to say, the market’s assets (the properties) cannot be sold at a price equal to the one they were bought for. This is a great problem for the property owner as the whole idea in getting onto the property market is to make a return on the initial investment (otherwise known as ROI). If this isn’t done, then a great loss has been made. Now that the economy is in such trouble due to the Credit Crunch, the property market is nose diving and owners are biding their time until the average sale price rises once again.
So what should you do if you’re a Spanish property owner, particularly in the Costa del Sol? The answer is, sit on your investment and get all you can from it; whether that’s enjoying it yourself or by renting it out to other keen travelers to gain some extra income. Every penny counts at the moment!
Lucy Wallace
http://www.articlesbase.com/real-estate-articles/costa-del-sol-holiday-rentals-why-owners-have-turned-to-renting-their-properties-671921.html
