How To Buy & Profit from the Foreclosure Real Estate BOOM without Cash and Bad Credit!
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How To Buy & Profit from the Foreclosure Real Estate BOOM without Cash and Bad Credit!
How To Buy & Profit from the Foreclosure Real Estate BOOM without Cash and Bad Credit!
A smart real estate investor will know that using leverage and following a system can net terrific profits in real estate.
Particularly with foreclosure properties. Foreclosures are a great way to build a fortune. Now more than ever, because real estate foreclosure rates are the highest we've seen in 46 years...
Here’s a basic strategy investors with foreclosures:
A foreclosure home is up for sale. It's worth $350,000 according to comparable real estate appraisals, but the bank's asking price is $300,000. The savvy investor will have a contractor or home inspector on their power team check out the foreclosure property in question. In this case, they discover it needs $20,000 of work.
Interestingly enough, many real estate homebuyers will pass right over the foreclosed property. Because unlike an investor, they "think" it's ugly.
This real estate offers a handsome opportunity for an opportunistic real estate investor. Savvy investors will also use the Multi-Offer Strategy Technique in a Foreclosure…
This technique uses the principle of offering ‘choice’ to the eager seller – the bank - after it has been on the market for 60 days.
Here, the investor submits three offers at a variety of prices ranging from $210,000 to $225,000. They do so by submitting an offer in their personal name, another under their partner's name, and the other under a company name. These offers are presented by the Realtor to the bank's loss mitigation department whose sole job is to sell off the banks non-performing assets as quickly as possible.
Even if that means the bank registers a loss on the loan of the property by selling to the investor. Since they are buying through a bank's loss mitigation department, their offer of $225,000 is accepted - even though it is well under the asking price.
This strategy can work great in a foreclosure-heavy market like Detroit and Denver, Colorado.
Yes, foreclosure real estate in Denver and foreclosures throughout Colorado's real estate market are high. And banks in these markets truly are motivated sellers. That's not all!
The savvy investor experienced in the real estate contract with a foreclosure will actually get the bank to give them a mortgage for the $225,000. Once the home loan goes through, the investor closes on the real estate, using a 10% down payment from a private lender.
The investor then immediately sells the property to another “fix and flip” investor, and nets at least a $75,000 profit. All this by selling it at the original asking price rather, than the actual real estate value of the property! Foreclosure real estate is skyrocketing. Being a real estate investor with this one niche can help you become a multi-millionaire.
And you know something, tens of thousands of investors recognize this - it's know Secret you know - and they're out there marketing & pounding the pavement to pull those deals together already.
So how can you gain a competitive advantage over them?
Perhaps I can better explain it this way.
Because people have asked me, (Brad - how would you do this?). As a syndicator, and one who does not like speaking to motivated sellers on the phone, knocking on doors, dealing with banks, etc - I wait for some other investor to go through those hassles, and only when it's on contract, do I Pick & Choose the deal by looking at it arms length, on the web, from my computer screen.
In essence, I let the deals come to me. I hope you choose to do this too (it's much easier that ways).
Discover more real estate investing tips, deal alerts, and receive valuable foreclosure resources and contracts here at INSTANTRealEstateSolutions.com in our "Resources" section. It will literally change your life.
Cheers,
Brad Wozny
Originally Posted: Apr 20, 2007 at 8:43 AM Last Updated: Apr 20, 2007 at 3:43 AM
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