How To Buy A Foreclosure
As anyone with even passing familiarity with national news headlines is aware
, the number of foreclosures taking place on a daily basis has shattered all previous records. While this is obviously a calamity for the homeowners losing their homes, it"s also a devastating situation for lenders who can"t afford to take so many REO properties back into their inventories. For real estate investors that know how to capitalize on this opportunity it is an unprecedented opportunity for profit "" and a chance to help others at the same time. Here are three ways you can take advantage of the opportunities available in today"s red-hot foreclosure market:" Foreclosure "" Once a homeowner has defaulted on their mortgage loan, they"ve begun the countdown to foreclosure. At this stage, the homeowner has faced the reality that there"s a very strong possibility that they could lose their home. Some are holding out hope that a miraculous solution could materialize that will suddenly cure their financial problems, but many others are simply looking for a way out that will allow them to retain some of their dignity "" and their credit rating. A very good method of identifying these foreclosure opportunities is by scouring foreclosure filings and then contacting homeowners with a solution to their problems. You can approach homeowners in person, but a better way is to send a personalized letter explaining how you can help them and why you are the best person to help them out of their situation. You might give a brief explanation in your letter of how you propose helping them, but the most critical thing your letter MUST do is make a personal connection with the homeowner with a call to action. Ask them to contact you TODAY so you can explain all of the options available to the homeowner. Improve your chances of success with this strategy by following up with a phone call. Be relaxed, honest, and willing to help. The homeowner will appreciate your candor and will be much more willing to reward you with a go-ahead to help them.
" Post-foreclosure "" Once the foreclosure is complete, the homeowner is out of the picture. Now the lender has an REO that they desperately need to get rid of "" quickly. As a real estate investor, you"re in the unique position of being a solution to the lender"s REO problem. Lenders are saddled with so many REO properties that many of them are willing to discount them for as little as 40 to 50 cents on the dollar. Offers that lenders would have rejected with contempt a year or two ago are being accepted with gratitude today. So be professional "" and ready to get a good deal. If you"d like free access to a tremendous resource in locating nationwide REOs and other bank-owned properties, go to www.REIconferences.com/resources.htm
" Pre-foreclosure "" While I don"t teach pre-foreclosure strategies, some real estate investors have had success by trying to beat the competition to the punch and buying a distressed property before it shows up on foreclosure lists. There are several ways of doing this. One of the best is by advertising your willingness to purchase the home of a homeowner who may be facing foreclosure. Homeowners know before anyone that they"re in serious trouble, so if they"re facing an impending divorce, job loss, or payments they can"t afford, they know before they"ve even missed a payment that something needs to be done. You can advertise for pre-foreclosures in the classified section of your newspaper, on bandit signs, or even Craig"s List. When these desperate
homeowners contact you for solutions you can buy subject-to the existing financing, by utilizing partners, or even by doing a short sale. Your options are wide open. Listen to the needs of the homeowner and craft a solution that meets their needs "" and funnels cash into your bank account!
Foreclosures are a tremendous way to build a portfolio of properties very quickly in today"s market. The opportunities are real "" and the profits can allow you to generate instant equity and residual income that can help you make a generational shift in your family"s financial future. For free tips, tools, and advice on how to capitalize on today"s foreclosure crisis, visit www.REIconferences.com.
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