Category Archives: How to Buy Foreclosure

Feb 18

How To Train Your Eye For Foreclosure Investing

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You don’t need to spend thousands of dollars on real estate seminars to become expert in the foreclosure investing business. Many who have made millions in this line of business are completely self taught. You also don’t need expensive gadgets and computer programs. All you need to get started is a pen, a pad with paper, a map of local neighborhoods and on open mind.

You should start by looking at neighborhoods in streets close to you. A good radius is your commute to and from work. Perhaps leave early one day and take 30 minutes looking at one particular street. Take note of the kinds of things that you see. Is there lots of renting? What kind of conditions are the homes in? Do people park their cars on the road? Ect. Once you have a feel for the neighborhood, practice finding the home that doesn’t quite fit. There may be a home that is UN kept, or abandoned. There may be a house that just looks more run down than the others. Keep doing this on other streets in other neighborhoods.

As you look at other neighborhoods, try to get a feel for how each neighborhood is maintained. You’ll find that there may be a great deal of variance even between neighborhoods that are close together. As you do this with several neighborhoods, you will start to develop skills essential for investing. Investors must know how neighborhoods compare with each other. By driving into a new neighborhood and being able to see how the house quality compares with those of nearby neighborhoods is something that good property investors can do with 100 percent accuracy.

Generally, properties get more expensive if they are close to good amenities. Properties that are close to schools, parks, shopping and leisure facilities will likely be maintained and sell for top dollar. Properties start to drop in value when they get closer to highways and large commercial and industrial areas. Try to locate some of these areas on your neighborhood map, then drive through slowly and see if the theory holds true. Sometimes the homes are only slightly less maintained but this can mean a price difference of thousands.

It costs very little money to train your property developer’s eye. By simply purchasing a map and scouting out local neighborhoods, you can develop several of the essential skills needed for good foreclosure investing.

Jan 03

House Foreclosure – How To Find Them And Make Awesome Profits Today

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There are thousands of investors around the world who have now taken the opportunity to turn property investment into a full time career.  For some the best way is to find a house foreclosure, purchase the property and then sell it for a substantial profit.  For some they are now able to purchase a property in the morning, then sell it in the afternoon to someone else.  If you wish to profit from house foreclosure then all you need is a bit of savvy and follow the tips which are outlined below.

Be Informed
There are plenty of websites that promise to you give you information on homes that are pending foreclosure for a small fee but you will be just one of many people in your area who will be looking for a similar investment opportunity.  So carry out as much research as possible and learn about where house foreclosures are before they get listed online.  Make contact with local realtors, community officials or the county seat where tax information is kept if you want to find out ahead of the competition when someone is about to be foreclosed.  But if you don’t have a lot of time available, using an online foreclosure listing service may be a good option to save time.

Get to know your neighbors
If you know your neighbors then it may be that one of your neighbors is going through a difficult time and you don’t want to rub salt into their wounds by bringing up their problems in front of everyone.  So why not just hand them a business card and explain that you may be able to help them out.  If you come across as being considerate towards their situation then more than likely you will receive a favourable response (not necessarily straight away but at a time when your neighbors have had time to consider their options and then realized that there is no other route they can take).

Advertising
Place ads either online or in your local newspaper and mention that you are a foreclosure specialist and are willing to help people avoid foreclosure by selling their home to you.  For such people if they know that they can sell their home without having to pay realtor’s fees then your service will seem pretty attractive to them.  This is especially true if they have no financial burden once the mortgage has been paid off.

As you can see anyone can profit from house foreclosures and with the number of house foreclosures rising all the time it is a great opportunity to invest in a profitable future.

Dec 18

Foreclosure Investing and Structuring Deals with Private Investors

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As a foreclosure investor, you’ll want to find private investors and structure deals with them. So you might ask yourself, “How much money do I offer my private investors?”  That’s easy: if it’s a new relationship, make sure it’s attractive enough that they are going to say yes! In this article, I explain how to successfully work with private investors.

There is no set amount that private investors expect to make on deals with real estate investors. Some private investors would like to lend you money at 10-12% interest per year. Others may want a percentage of the profits. They all have different expectations. Your job is to understand what they want in exchange for lending you their money.

The terms of private money can be anywhere from one month to whatever deal you need to strike. As long as the investor is getting paid the interest rate that you’ve promised them they’re probably not going to pressure you to give them back their money before the agreed-upon date–as long as it remains secured.

The more private investors you have at your disposal the less your money is going to cost you. And as you continue to have successful transactions with your private investors, their trust in you will go up and they’ll be more likely to lend you additional funds.

With our private investors we let our interest accumulate. For example, we borrow $100,000 at 12% per year, or $1000 per month in interest-only payments. Let’s say it takes 6 months to close the transaction; we will not pay them $1000 a month for six months. We will pay them $6,000 at the end of 6 months, plus their principal back. Most real estate investors will only do interest-only loans. They will not reduce the principal as the deal goes on like a bank would.

What you need to do when working with private investors is find someone who understands return-on-investment. If they don’t know a lot about the real estate business and return on investment it will be your job to educate them with statistics on the real estate industry that show them that investing in real estate through you is a good risk.

These days many investors are scared of the stock market and are looking for alternatives and most investors are looking for something solid. Explain to your potential investors that real estate is a solid investment that is secured by a Deed of Trust.

Here’s my secret for keeping my private investors happy: when I do a good deal with my investor’s money, I reward them with bonuses. If I make a substantial amount of money, let’s say $35,000, I might reward my investor with a $5,000 bonus check. Why? Because I like 12% money with no points. I want to keep my investors happy. It needs to be a win-win situation for everybody.

Continue to seek out private investors in your foreclosure investing business. It can be hard but very rewarding.

About the Author

Paul Wells has been investing in foreclosures full-time for more than 5 years. For more foreclosure investing secrets like the one in this article, subscribe to Paul’s Free Foreclosure Investing course here : http://www.FreeForeclosureInvesting.com

Dec 12

Foreclosure Investing Money Can Come From Anywhere

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As a foreclosure investor, you never know where your money to do the next deal might come from. In this article I’ll tell you a story about how networking with people might turn up your next private investor.

When I first began investing, I figured I would have to go through the traditional lending channels. But I also knew that was very cumbersome. So I wanted to find a source of private funds. One person said if you don’t have your private funding in place, you can miss out on many good deals. Well, I knew I wanted private funding, but I didn’t know where to look.

In August 2002, I was doing a foreclosure deal with a double closing. Everyone at the closing table was dressed very sharply–except for me.  For those of you who know me, you know that I can dress pretty dang casual in any given circumstance, and when I first started this business I did it all the time.  Now, I will dress up somewhat for closings, but a tie is still out of the question.

So I did this deal with all these well-dressed guys there. When we finished the closing, the mortgage lender for the buyers came up and introduced himself to me. I will call him “TB”.

TB said that he had seen the numbers, and that I had made more money then anyone at that table.  My response was my usual: “Well, you win some, and then you win some that are bigger.” And I left it at that.

Well, funny how things happen. I did another deal, and at the closing table sitting across from me was TB. This was a stinky deal.  But TB’s professionalism and his ability to work under pressure and get the deal done impressed me. I told him so after the closing. Again, he said that he saw the numbers and he still was pretty impressed. This time, I had a business card and gave it to him.

The next morning, TB called. “I may have a business opportunity for you,” he said. And we scheduled a time to get together.

At lunch, TB asked if I ever needed money.  He saw how much creativity and enthusiasm I had for the deals I was doing.  He also was impressed by the fact that I always seemed prepared. He offered to fund deals, up to 90% LTV.   That was the difference between him and “hard money” lenders.

I thought to myself, BINGO!!  I had been looking for money, but didn’t know where to get it. Now, I had an investor. TB’s money was expensive–12% interest and 50% of profits–a very, very steep price! However, at that time I needed the money to do my real estate deals, and TB became a source of my funds.

These days I use 12% money on a regular basis and this works just fine for me now.

The lesson of this article: never be surprised where your funds can come from!

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Paul Wells has been investing in foreclosures full-time for more than 5 years. For more foreclosure investing secrets like the one in this article, subscribe to Paul’s Free Foreclosure Investing course here: http://www.FreeForeclosureInvesting.com.

Dec 03

Foreclosure Investing: Telephone Magic

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Are you afraid of the telephone?

You would be surprised to find out that many people do not even attempt foreclosure real estate investing because they are afraid of making a telephone call.  If that is you, I have some great news for you.

I am going to take away the phone fear for you at absolutely no charge.

Welcome to the next installment of Matthew Griffin’s 7 Foreclosure Secrets where I am giving away information that is currently being sold on other websites.  Why am I doing this?  It’s very simple; once you see how easy it is to make money in foreclosure real estate investing, I believe you will come to me for your educational needs.  Simply visit my website at http://www.foreclosureprofitsnow.com/.

Would you like to know how to pick up the phone and call a homeowner to discuss purchasing their property without being afraid?  I’m going to tell you.  In fact, what I am about to do is unprecedented.

I am going to tell you exactly what to say.  It’s called a telephone script and some people would charge you hundreds of dollars for it.  I’m not only going to give a script to you for free, I’m going to give you two of them.

All you have to do to work some Telephone Magic is obtain the telephone number of a prospective homeowner and, after practicing a few times, repeat the words contained in one of the following two scripts:

  • Script one.  Hello, my name is NAME and I would like to speak with HOMEOWNER NAME, please.  [After the homeowner gets on the phone with you, say] I am calling you today because we work with people who are facing challenges with their mortgage.  The company that holds your mortgage has filed legal documents with the county to begin proceedings to take your home away from you.  These documents are public record, and that’s how we found out about your situation.  We have worked with people facing this exact same issue for many years, and would like to discuss some possible solutions with you.  We may be able to help you obtain a forbearance, sell your home, find a cash buyer for your home, or take other creative steps to stop the legal proceedings and keep any foreclosure off of your credit report.  We would like to schedule a free, no obligation consultation to discuss possible solutions to this situation.  May I set up a time for us to come meet with you?
  • Script two.  Hello, my name is NAME.  I have been looking to purchase a home in this area and heard that your house might be for sale.  When I drove by to look at it, however, there was no sign in the yard.  Is your home on the market?

As you can see, you don’t have to be afraid of talking on the phone.  Simply go over these scripts until you are able to say them smoothly and confidently.  Feel free to put things in your own words.  You don’t want the homeowner to realize you’re reading something, so do your best to sound natural.  You may want to print out the script and use a highlighter to highlight certain words and phrases as sort of an outline.  That way you can say things in your own words, but if you need help, you can refer back to the script.  After you have made a few phone calls, you will find that you don’t need to use scripts anymore.  You will have overcome your fear completely.

Was fear of talking on the telephone standing between you and financial security?  Are you not living the lifestyle you desire because you thought it was too hard to successfully invest in real estate?  If so, your worries are over.

I encourage you to investigate for yourself the many advantages of successful real estate investing.  If you would like additional information, including the other installments of Matthew Griffin’s 7 Foreclosure Secrets, please go to http://www.foreclosureprofitsnow.com/.

Matthew Griffin

Nov 23

Buying a HUD Foreclosure Property

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Department of Housing and Urban Development or HUD foreclosure properties are readily available across the USA.  However the process for purchasing such a property is not the same as when buying a home from an individual.  So it is important that you read through this article before you make any decisions to go and purchase a HUD foreclosure property as an investment opportunity.

So what is a HUD property?
If a property has been purchased with a loan that is insured by the FHA (Federal Housing Administration) then the lender can file a claim with them for the balance which is due on the mortgage.  The FHA will then pay the lender’s claim and ownership of the property is transferred to HUD who is able sell the home.

How much do you expect to pay for a HUD property?
Such properties will be appraised and priced at what is considered a fair market value for the property for where it’s located.  Any home that is in need of repairs will have its price adjusted downwards in order to reflect any investment that the new owner will have to make to improve the property.

What one should remember if looking to purchase a HUD foreclosure as an investment opportunity is they are sold as seen and the new owner is responsible for all repairs and improvements that are required.

Where do I find a HUD property?
The best way to view any HUD listings is to follow the state links on the HUD’s website.  However it may take a while as each state’s internet destination is set up differently, so take some time to browse their search engine and its layout.

Once you have located a HUD foreclosure property that you would like to see then all you need to do is contact any HUD approved real estate office to arrange an appointment.  These real estate agents can also be found on the HUD website.

To purchase a HUD home can I just simply make an offer for it?
Unfortunately HUD foreclosures are sold using a bidding process and there is a period (Offer Period) of time in which sealed bids can be accepted from an agent.  At the end of the offer period all the offers are opened and generally the highest bid is the one that will be accepted by HUD or they may decide to accept the bid which brings them the highest net profit.

If a home remain unsold after the initial offer period then are bids opened as they are received?

Normally when a bid is accepted you will be notified by your agent within a day or two of the expiry of the offer period and you will be issued with a settlement date (usually 30-60 days from the date when your contract was accepted).  On such sales HUD will pay real estate agencies fees of up to 6% for any homes that are sold so be aware that in order for the selling agent to be paid they must insert the wording in their contracts that verifies that HUD will pay their commission on a HUD foreclosure sale.

Nov 10

Foreclosure Investing: No Cash, No Credit, No Problem

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Did you know you can invest in real estate even if you don’t have a lot of money and your credit isn’t perfect?

Well, you can…and I want to show you how.

My name is Matthew Griffin and I am a real estate investor and author.  In fact, I offer a full course on foreclosure real estate investing that you can check out by going tohttp://www.foreclosureprofitsnow.com/.  But today, I am offering you one of my seven foreclosure secrets at absolutely no charge.

Why would I do this?

Because most people think that they have to have a lot of money or great credit before they can even think about investing in real estate; and this mindset simply isn’t accurate.  In today’s real estate market, there are many ways for an investor to control a property without going to the bank or to a traditional mortgage lender.  All you have to do is be able to “think outside the box.”

YOU can be a real estate investor TODAY without a fat bank account or a five-star credit rating.  Here’s how to do it:

  • Locate a property where the homeowner is facing a foreclosure situation because they’re unable to afford their mortgage payments.
  • Pick up the telephone, call that homeowner, and make an appointment to come over and discuss their situation.
  • Get that property under contract by explaining that you are a solutions provider and real estate investor who can help them get out from under their debt.
  • Sell that contract to another real estate investor and collect an assignment fee OR finance the deal through a hard money lender and sell the property yourself on the retail market.

YOU HAVE JUST INVESTED IN REAL ESTATE AND MADE A 
PROFIT WITHOUT TOUCHING YOUR OWN MONEY OR HAVING 
YOUR CREDIT REPORT CHECKED.

I provide all of the details on how to do this and much more in my educational programs.  Just visit my website athttp://www.foreclosureprofitsnow.com/ to learn more.

Think about the difference this investment strategy could make in your life.  Do you have enough money to live the lifestyle you always wanted?  Have you funded your retirement?  Do you have enough money to make your future secure?  If you’re like most people, the answer to these questions is no; but investing in real estate can provide you with the money you need to live your life free from financial pressure.

I am going to be offering all seven of my Foreclosure Secrets at no charge for a limited time.  I want you to see that real estate investing does not have to be complicated, difficult, or stressful.  YOU can be a successful real estate investor TODAY if you’ll take the time to learn the right way to do it.

Be sure and look for the next installment of my series on 7 Foreclosure Secrets so that you can learn profitable ways to invest in real estate.  In the meantime, I encourage you to investigate all of the educational resources available athttp://www.foreclosureprofitsnow.com/.  You’ll be glad you did.

Don’t put off your successful career in real estate investing any longer.  Get started TODAY!

Matthew Griffin

Oct 27

Buying Foreclosures

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Foreclosures have not been touched by the black plague; many are good options to look at when shopping for a home.  Sometimes they do need to be fixed up, but other times you can move into them right away. Despite the negative impression many buyers have, foreclosures can be a great way to buy a home and gain instant equity.

First, it is valuable to understand how a home becomes a foreclosed property. A simple definition is that someone borrowed money to purchase the home, and then stopped paying the money back (a.k.a. going into default on their mortgage). This allows the lender to take legal action and obtain ownership of the home to recoup their losses; and in turn causes the homeowner who was in default to lose any equity they had built in the home. You would think that banks would be happy to take the home to cover the money they loaned out; however it is bad for them to keep foreclosures on their books. To alleviate the problem lenders typically try to auction or resell the house as quickly as possible.

HUD (Housing and Urban Development) homes are also foreclosed properties. They are different from normal foreclosures because the lender for the loan was a government lender such as FHA (Federal Housing Administration) or VA (Veterans’ Affairs). When owners with government loans go into default, HUD steps in to take over the property and try to resell or auction it.

Now you know what a foreclosure is, and you can consider foreclosed properties that catch your eye without fear of the unknown. Keep in mind that you should still go through all of the appropriate channels to check out the house structurally and functionally before you make a buying decision. This includes getting a proper home inspection. An inspection will point out any existing or potential problems and will allow you to factor in estimates for repairs that will need to be made to the home right away. These repairs may include plumbing or wiring, the roof, flooring, paint and so on. Making these calculations will help you figure out the amount of equity you will really end up with, and allow you to make the best decision financially.

As you continue your search for a home, remember that foreclosures can be a good investment for your family. By doing your research you can find and entertain more options then you might have realized that meet both your price and living space needs.

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