My regards to the community, I would be seeking your advice on some matter. I have some interests in real estate and have read that foreclosure is an efficient way to gather up profits. I would like a little more thought on this…as to how does the whole thing work and how can we invest properly in pre-foreclosures to earn secure profits.
Forclosures can be profitable but you have to understand the way they work before you begin to think about buying forclosed properties as an investment.
To begin with, forclosures are usually sold in a public auction and you *must* be present in person (or have a representative prestn on your behalf) with the money in hand in order to purchase a property up for auction. This in itself presents the most potentially daunting task when operating with forclosures.
The trick is finding some way to find properties that are in pre-forclosure and try to work with the homeowner and the mortgage lender to make a purchase that will work well for all three parties involved (you, the homeowner and the lender). I don't want to let the cat out of the bag but I do know a real estate broker who is placing ads in the local newspaper and on Craigslist asking homeowners who are in risk of forclosure to contact him for assistance. When confronted with the reality of forclosure, most homeowners will try to find a way out just to save their credit rating and the mortgage lenders know following a forclosure to the end will lose them money (but in the latter case, the FDIC and other government agencies will cough up the losses to bail out the lender).
Another risk of dealing with forclosed properties is you have to understand the mentality of a family losing their home and that the home may not be in perfect condition as would be with buying a property that is up for sale.
Those are just a few of the complexities relevant to buying forclosures. and remember, you will need the cash up front. You can't assume a mortgage to buy these type of properties although you could take equity out of an existing property to leverage it for the cash, but that's another story.
I started an article series on the C4G blog about How to Find Forclosure Listings - Real Estate Investing using one of the best search tools available (and they offer a 7 day free trial). I'm just giving you a quick response here but stay tuned to the blog (or subscribe to it's RSS feed) because that article was only the first installment of the series that I'm currently researching.
Foreclosure investing is really hotting up the scene nowadays. As more and more people are clearing off the debts by their property sale…..its a good way to capture some profits and quick ones too. Foreclosure profits are not only earned quickly but they are easy to earn also provided you know a foreclosure system. You just need a proper plan and way to go about it and then you can be good at judging the circumstances.
As Dave said, you need to have the cash in hand to secure a forclosure property or to make a pre-forclosure deal. I am very interested in this topic but I don't have much liquidity and my equity is limited since my wife and I are only the 5th year of our mortgage and most of what we've paid is interest.
Well if you asked about in real estate investing then i say that it is a very good option then any other investing system. I would like to tell you that when my friend had invested in real estate he was also not sure of the profits there but he recently had his real estate deals from IRA-401K and he was quite pleased with his investing. There are many things that you can look up in investing in real estate and I think that it will be profitable for you too.
When it come to real estate investing one size does not fit all. Before you can be better advised there are several things the individual must inventory about his or her personal finances and abilities.
Do you or someone close to have extensive handyman capabilities, do you have good marketing skills, what are you ultimate goals as a real estate investor etc.............(You get the message)
By assessing personal assets first one can better plot their plan of action as to how they will acquire and execute on the properties.
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Jun 10, 2008, 02:32:10 PM
