Investing In Foreclosures: A Shortcut To Real Estate Riches
If you had been watching the real estate foreclosure investing market closely during the massive housing boom of 2000-2005, you could have seen the current foreclosure crisis coming; and with it, the many foreclosure investment opportunities which have proliferated nationwide.
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.
Getting into the foreclosure investing game could be an extremely lucrative move that alone could not only feed your family but pay for lavish lifestyle and vacations. Or it could turn into a big black hole consuming all of your time, energy and marketing dollars.
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.
In short, if a homeowner is behind on payments, you can be prepared for a major fight for his attention. Just imagine for a moment that person sitting at his kitchen table plowing through a pile of letters from lawyers, bill collectors and investors. Your mailing piece is just one of many that goes straight to the garbage can. You must find a way to differentiate yourself from the investment crowds. Here's an idea that will put you ahead of the competition.
Take An Ethical Approach To Deal with Sellers Facing Foreclosure. People who are facing foreclosure are not exactly going to be eager to speak with you about selling their home. In fact, most see real estate investors as scavengers swooping in to profit from their troubles.
If you want to get people facing foreclosure to call you, what you need is to offer them the option of staying in their home.
Three-Step Highly Profitable Foreclosure Investing Strategy That Stars With An Offer To Keep Homeowners Facing Foreclosure In Their Home. First, trying to help a family in financial trouble is the ethical thing to do. You'll be preserving the American Dream.
In addition to that, you can make a tidy profit by doing things ethically. You can try to assist the homeowner in negotiating a payment plan with their lender (through the lenders loss mitigation department) and charge a fee for this service. You can get your hands on a nationwide list of contacts at loss mitigation departments easily enough. With so many homeowners struggling to keep their homes, there are tens of thousands of opportunities for you to make money by offering loss mitigation negotiation services.
To wrap it up, this approach to investing in foreclosures is the most profitable one to use. More often than not youll end up right where you started " on your foreclosure investing track, as many homeowners will not get their repayment plan approved. Once they realize that they really have no other option but to sell, they are most likely to sell to you, the educated and considerate foreclosure investor, since you have tried to work with them to keep their home.
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.
Getting into the foreclosure investing game could be an extremely lucrative move that alone could not only feed your family but pay for lavish lifestyle and vacations. Or it could turn into a big black hole consuming all of your time, energy and marketing dollars.
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.
In short, if a homeowner is behind on payments, you can be prepared for a major fight for his attention. Just imagine for a moment that person sitting at his kitchen table plowing through a pile of letters from lawyers, bill collectors and investors. Your mailing piece is just one of many that goes straight to the garbage can. You must find a way to differentiate yourself from the investment crowds. Here's an idea that will put you ahead of the competition.
Take An Ethical Approach To Deal with Sellers Facing Foreclosure. People who are facing foreclosure are not exactly going to be eager to speak with you about selling their home. In fact, most see real estate investors as scavengers swooping in to profit from their troubles.
If you want to get people facing foreclosure to call you, what you need is to offer them the option of staying in their home.
Three-Step Highly Profitable Foreclosure Investing Strategy That Stars With An Offer To Keep Homeowners Facing Foreclosure In Their Home. First, trying to help a family in financial trouble is the ethical thing to do. You'll be preserving the American Dream.
In addition to that, you can make a tidy profit by doing things ethically. You can try to assist the homeowner in negotiating a payment plan with their lender (through the lenders loss mitigation department) and charge a fee for this service. You can get your hands on a nationwide list of contacts at loss mitigation departments easily enough. With so many homeowners struggling to keep their homes, there are tens of thousands of opportunities for you to make money by offering loss mitigation negotiation services.
To wrap it up, this approach to investing in foreclosures is the most profitable one to use. More often than not youll end up right where you started " on your foreclosure investing track, as many homeowners will not get their repayment plan approved. Once they realize that they really have no other option but to sell, they are most likely to sell to you, the educated and considerate foreclosure investor, since you have tried to work with them to keep their home.
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This pre foreclosure strategy will equip you to become a dominant force in your foreclosure investing market.
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