Foreclosures: Real Estate Investing The Smart Way
If you were a real estate investor watching the real estate boom of early 2000s closely, you could have predicted the foreclosure investing opportunities that would become available today in virtually every real estate market in the country.
In the last two years mortgage lenders have been reporting dramatic increases in defaults and foreclosure rates nationwide causing many sub-prime lenders to go under. Many real estate investors turned their attention to buying foreclosures. But what you may have seen is just a tip of the iceberg.
Will You Be Able To Capitalize On This Foreclosure Boom? On the surface it seems easy enough. Get a list of properties in default. Contact homeowners. And get the deal done at a juicy discount, before the bank takes the house. Then you can fix it up and flip it, or keep it as a rental with an instant built-in equity profit. Right? Well, not quite.
You may be able to make a lot of money in foreclosure investing; enough to support yourself and your family, even pay for luxuries. However, foreclosure investments could also turn into a money pit which could take up all of your time and your money.
There are few people who consistently turn a profit on their foreclosure investments. Why is this? They are in a competitive, crowded market and are going about things the wrong way.
How Will You Differentiate Yourself in a Crowded Foreclosure Investing Field? To say it's crowded is a huge understatement. The field of foreclosures is probably the most competitive area of real estate investing. It routinely gets more attention from mass media. So more people flock to pursue it. Hundreds of investors in your metro area are mailing to homeowners facing foreclosure. They're even harassing homeowners on the phone and knocking on doors.
Homeowners who are in danger of foreclosure receive a lot of contact from other property investors, not to mention their lender and attorneys. The mailings you send out may get lost in the shuffle and end up in the trash unless you find a way to differentiate yourself from all of the other investors clamoring for attention. There is a very effective strategy you can use to set yourself apart and be even more profitable in your foreclosure investment activities.
The Only Ethical Way To Approach Foreclosure Investing. Truth be told, for most people who are behind on mortgage payments and in danger of losing their home - talking to a real estate investor about selling the home is the very last thing on their mind. They often perceive foreclosure investors as sharks taking advantage of their situation.
So, if you want your phone to ring with people in foreclosure, contact them with an offer to keep the home.
Advanced Foreclosure Investing - Keep Homeowners in Their Homes Instead of Purchasing Their Homes As Your Starting Point. Reason number one is giving homeowners facing tough times a chance to keep their home is simply the right thing to do.
Also by going about things this way, you can also make a profit. You should offer to help the homeowner negotiate a payment plan via their lenders loss mitigation department. Of course, you can charge a fee for this service as well. There are a lot of opportunities to offer this service currently, since so many homeowners are looking at foreclosure. You can get a list of contacts in the loss mitigation departments of mortgage lenders all over the country.
Last but not least, this is also a highly profitable route to foreclosure investing. In many cases, the loss mitigation process will not work out for the homeowners and you will end up buying their home anyway. And whom will the homeowner turn to when they find that their best option is to sell? You guessed it, the foreclosure investor who tried to help them keep their home. Thats how the cookie crumbles back to foreclosure investing.
In the last two years mortgage lenders have been reporting dramatic increases in defaults and foreclosure rates nationwide causing many sub-prime lenders to go under. Many real estate investors turned their attention to buying foreclosures. But what you may have seen is just a tip of the iceberg.
Will You Be Able To Capitalize On This Foreclosure Boom? On the surface it seems easy enough. Get a list of properties in default. Contact homeowners. And get the deal done at a juicy discount, before the bank takes the house. Then you can fix it up and flip it, or keep it as a rental with an instant built-in equity profit. Right? Well, not quite.
You may be able to make a lot of money in foreclosure investing; enough to support yourself and your family, even pay for luxuries. However, foreclosure investments could also turn into a money pit which could take up all of your time and your money.
There are few people who consistently turn a profit on their foreclosure investments. Why is this? They are in a competitive, crowded market and are going about things the wrong way.
How Will You Differentiate Yourself in a Crowded Foreclosure Investing Field? To say it's crowded is a huge understatement. The field of foreclosures is probably the most competitive area of real estate investing. It routinely gets more attention from mass media. So more people flock to pursue it. Hundreds of investors in your metro area are mailing to homeowners facing foreclosure. They're even harassing homeowners on the phone and knocking on doors.
Homeowners who are in danger of foreclosure receive a lot of contact from other property investors, not to mention their lender and attorneys. The mailings you send out may get lost in the shuffle and end up in the trash unless you find a way to differentiate yourself from all of the other investors clamoring for attention. There is a very effective strategy you can use to set yourself apart and be even more profitable in your foreclosure investment activities.
The Only Ethical Way To Approach Foreclosure Investing. Truth be told, for most people who are behind on mortgage payments and in danger of losing their home - talking to a real estate investor about selling the home is the very last thing on their mind. They often perceive foreclosure investors as sharks taking advantage of their situation.
So, if you want your phone to ring with people in foreclosure, contact them with an offer to keep the home.
Advanced Foreclosure Investing - Keep Homeowners in Their Homes Instead of Purchasing Their Homes As Your Starting Point. Reason number one is giving homeowners facing tough times a chance to keep their home is simply the right thing to do.
Also by going about things this way, you can also make a profit. You should offer to help the homeowner negotiate a payment plan via their lenders loss mitigation department. Of course, you can charge a fee for this service as well. There are a lot of opportunities to offer this service currently, since so many homeowners are looking at foreclosure. You can get a list of contacts in the loss mitigation departments of mortgage lenders all over the country.
Last but not least, this is also a highly profitable route to foreclosure investing. In many cases, the loss mitigation process will not work out for the homeowners and you will end up buying their home anyway. And whom will the homeowner turn to when they find that their best option is to sell? You guessed it, the foreclosure investor who tried to help them keep their home. Thats how the cookie crumbles back to foreclosure investing.
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To outsmart your competition in pre foreclosure chase use this foreclosure investing tactic and you'll be amazed at your results.
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