Foreclosure Investing: Unknown But Highly Profitable Method
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 Can You Stand Out in the Competitive Business of Foreclosure Investing? To call foreclosure investment a competitive field is understating things. A lot of news stories have come out about these investments, meaning that many investors have gotten in on the action. Investors send mountains of mail, deluge homeowners with phone calls and some even go so far as to show up at their doors.
Any homeowner who is looking at the possibility of foreclosure is probably being deluged with offers from other investors, along with everything else theyre struggling with. Your mailings will likely be just one of many and it may be destined for the trash! That is, unless you can manage to set yourself apart from the competition; keep reading to find one way to do this.
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.
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.
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 Can You Stand Out in the Competitive Business of Foreclosure Investing? To call foreclosure investment a competitive field is understating things. A lot of news stories have come out about these investments, meaning that many investors have gotten in on the action. Investors send mountains of mail, deluge homeowners with phone calls and some even go so far as to show up at their doors.
Any homeowner who is looking at the possibility of foreclosure is probably being deluged with offers from other investors, along with everything else theyre struggling with. Your mailings will likely be just one of many and it may be destined for the trash! That is, unless you can manage to set yourself apart from the competition; keep reading to find one way to do this.
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.
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.
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.
About the Author:
Applying foreclosure investing strategies outlined above will put you in front of all preforeclosure investors in your town.
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