Posts Tagged ‘Preforeclosure’
What Makes Pre-Foreclosure Investing Superior To All Other Techniques
{How do you know what form of real estate investing is best suited for you~How do you know which real estate investing strategy is best for you~How do you know what approach to real estate investing is really best for you~How do you know what real estate investing approach is best suited for you}?{ Starting many years ago, we learned about the power of foreclosure investing~Many years ago, we learned about the power of foreclosure investing~Many years ago, we learned about the power of foreclosure investing~Several years ago, we learned just how powerful foreclosure investing could be}.{ If you had to try and explain foreclosure investing, you could throw a wide net over everything from a homeowner missing their first mortgage payment all the way to the foreclosure property selling at the courthouse steps~When attempting to explain foreclosure investing, you could cover a wide range of topics from a homeowner missing their first mortgage payment all the way to the house selling at the courthouse steps}.
{Then came along the idea of pre-foreclosure investing~Then came pre-foreclosure investing~Then someone came up with the idea of pre-foreclosure investing}.{ Pre-foreclosures really have everything to do with what happens from the time a notice of default is filled at the local courthouse and whether or not the house ever makes it to the courthouse steps~Pre-foreclosures begin with a notice of default being filed at the local courthouse and leads all the way up to the Sheriff sale or foreclosure auction~Pre-foreclosure begins when a notice of default is filed at the local courthouse and concludes when the house is auctioned off at the Sheriff sale}.
{Reason #1 Sellers Have Compelling Reasons To Sell~Reason 1 – Sellers Have A Very Compelling Reason To Sell~Reason #1 – Sellers Almost Always Have To Sell The Property}
{I don’t know why people who get into this situation do the same thing every time, but they do~I don’t know why homeowners who fall into pre-foreclosure do the same thing every time, but they do~I don’t know why sellers who get into this situation end up doing the same thing virtually every time, they just do}.{ In virtually every case, when you see this situation develop, the homeowner is usually going to fail to make a mortgage payment and the property falls into foreclosure~When you see this situation develop, the homeowner will fail to make the mortgage payment and the property fails into foreclosure~In virtually every case when this situation develops, the property usually falls into pre-foreclosure}.
{Usually when someone falls behind on the mortgage payment, its very difficult for them to catch up and regain that former financial stability~When a homeowner falls behind on the mortgage payment, its very difficult for them to catch up~When a seller falls into pre-foreclosure, its very difficult for them to climb back out~When a homeowner fails to make the mortgage payment, it’s usually very difficult to catch up and regain that former financial stability}.
{The leading causes of pre-foreclosure are~The main causes leading up into pre-foreclosure are:~The leading factors that cause someone to fall into pre-foreclosure are:}
1. Divorce
2. {Loss of job~Job loss~Job termination}
3. {Prolonged illness~Extended or prolonged illness~Prolonged sickness or disease}
4. {Job transfer~Employment transfer~Job or position transfer}
5. {Drug/alcohol abuse~Drug and/or alcohol abuse~Drug and/or alcohol dependency~Drug and/or alcohol addiction}
{Sellers who find themselves in pre-foreclosure have to sell the house in order to avoid having the house auctioned off by the Sheriff~Homeowners who find themselves in pre-foreclosure almost always have to sell in order to avoid having the house sold off at auction~Sellers who find themselves in pre-foreclosure almost always have to sell the house in order to avoid the foreclosure auction~Sellers in pre-foreclosure must sell the house in order to avoid having the Sheriff sell the house at the auction}. Experienced pre-foreclosure investors know that when they help sellers first, they are then rewarded with these steeply discounted investment properties.
{Reason #2 Less Competition For The Serious Real Esate Investor~Reason #2 Less Competition~Reason #2 – Less Competition For The Experienced Real Estate Investor~Reason #2 – Less Competition For The Experienced Pre-Foreclosure Investor}
{Many who consider themselves real estate investors are not trained properly when it comes to searching out and identifying the most profitable investment properties~Many real estate investors don’t know how to evaluate a market and find the most profitable investment properties~The majority of real estate investors do not know how to properly search out and find the most profitable investment properties in a given market~Many who consider themselves pre-foreclosure investors don’t know a good deal when it’s staring them right in the face}.{ These real estate investors typically thumb through classified ads each week and attempt to buy investment property at retail prices~These so called real estate investors search through the classified ads each week and focus on buying investment property at retail prices~These investors focus exclusively on classified ads and buy investment property at retail prices~These real estate investors focus almost exclusively on classified ads and attempt to purchase investment properties at retail prices}.{ Some of these investors may work with a real estate agent and attempt to find invesment property – but these are still listed properites with retail prices~Some investors work with real estate agents and attempt to buy investment property – but these are listed properties with high retail prices~Some of these real estate investors hire real estate agents and attempt to locate investment property – but these properties come with high, retail prices}.
{You can never really get ahead in the real estate investing business if you’re paying retail for investment property~You cannot build lasting wealth through real estate investing if you’re paying too much for investment property~You won’t make it in the real estate investing business if you don’t know how to buy investment property right~You won’t make it in the real estate investing business if you don’t know how to buy investment property~You’ll never make it as a pre-foreclosure investor if you’re paying too much for investment property}.{ You must learn to pay wholesale or even lower – and this is possible~You must learn how to buy investment property at wholesale prices~As an experienced pre-foreclosure investors, you must learn how to buy investment properties at wholesale prices~You must learn to buy at wholesale or even lower}.
{Serious pre-foreclosure investors do not pay retail for investment property and do not work regulary with real estate agents~Experienced pre-foreclosure investors don’t pay “retail prices” for investment property and they normally don’t work with real estate agents~Serious pre-foreclosure investors do not pay too much for investment property and normally do not work well with real estate agents~Experienced pre-foreclosure investors don’t work with real estate agents and certainly don’t pay retail prices for investment property}.{ These investors know how to search out and find the best real estate investing deals on the market~These investors are well trained in locating the best real estate deals in town~These investors know how to sniff out and locate the hottest real estate deals in the market}.{ Pre-foreclosure investors don’t wait for sellers to come to them – they go out and meet these sellers~Pre-foreclosure investors don’t wait for the action to come to them – they go out and find the action~Pre-foreclosure investors don’t wait around for something to happen – they go out and meet these sellers~Pre-foreclosure investors don’t wait around – they take action and meet with these sellers}.
{Now some pre-foreclosure investors mail out postcards and letters and some even make phone calls to homeowners who are in pre-foreclosure~Some pre-foreclosure investors take the time to mail out post cards and make a few phone calls to sellers in pre-foreclosure~Now some pre-foreclosure investors mail out post cards and make phone calls in attempts to contact sellers in pre-foreclosure}.{ But I have found that the most effective way to target pre-foreclosures is by traveling out to each property and physically knocking on the door and discussing the situation with the homeowner~But I have found that the most effective approach to pre-foreclosure investing is to travel out to each property and meet with the seller~But I have found that the best way to buy pre-foreclosures is to travel out to these houses and meet with the sellers~I have found the most effective approach to pre-foreclosure investing is to physically travel out to each house and meet with the homeowner}.
{What’s great about this approach is that it offers the higest return on investment with the least compeition~This approach offers the highest investment return with the least amount of competition~This approach to real estate investing offers the highest return on investment with the least competition~This approach offers the highest return on your investment dollar with the least amount of competition~This approach to real estate investing offers the highest return on your investment along with the least amount of competiton}.{ Pretty good combination if you’re trying to build long term wealth~Very good combination if you’re interested in building long term wealth~Very good combination if your trying to build generational wealth~Pretty good combination if you asked me}.
Shaun Steckler became financially independent by investing in houses and small apartment buildings in south Louisiana. Shaun now controls an investment portfolio that generates a five figure a month income for him today. You can learn more about Shaun?s real estate investing strategies and business models at http://RealEstate-Entrepreneur.com
The critical factors that affect the purchase of investment properties, pre-foreclosure investor
Posted by admin in Finance Wednesday, 18 August 2010 10:07 No Comments
With so many potential pitfalls lurk for the inexperienced investors from foreclosure, real estate investing what the critical factors that are considered for all times? The site will need are: Buying investment property in a High Risk Neighborhood We all real estate investing mantra, location, location, location have heard. Experienced investors before foreclosure can many places to work in their favor. A good place stable and predictable results produce for you as an investor. Real estate investors generally do not buy an investment property in exclusive neighborhoods. Most of the investment properties (for rent) are acquired in the middle class, working middle class and blue collar part of town. Real estate investors know that the risks go down when you buy an investment property in these neighborhoods. If you are new to investing in pre-foreclosure are listening to this advice closely. Not even the buying an investment property in areas of high crime. If there is trash lying around all over the young men only, while not buy the middle of the day, as investment property in these districts. Even if you can buy three bedroom, two bath house for $ 10,000, you are only able to be high maintenance tenants rent. And if you think about it on the sale, forget it. No one in their right mind who wants a loan, could qualify to live there. can Pre-foreclosure investing very forgiving if you stay in the game long enough. If you fail to follow this advice investment, then we will have some really big problems. If it remains at the foreclosure front investment from high risk areas.
The price to pay: too much for an investment property I think investing in real estate by far the most difficult to overcome errors is to pay too much for a piece of as investment property. And here is my logic on this issue. Whether the pre-foreclosure investor plans, flip or rent out as investment property, he must know (in advance) how much will the property at its fair market value (after repairs). If the real estate investor does not know the fair market value of shares held as investment property?, How will he know what he can afford, so that the investment paid to make sense When you pay too much for one as investment property, you are free to work or even at a loss for that matter. Even if you rent one of those held as investment property, not cash flow. What does the rental income is less than operating expenses. When this happens, you have an alligator on your hands. And alligators need to eat. If you are going to be successful in investing in pre-foreclosures, you need to know the figures. As a pre-foreclosure investor, there is no way around this.
The Exit: Effective Pre-foreclosure investors know that their exit strategy homes be thought of as a story that has a beginning, middle and an end. Effective real estate investors know what the end of the story each property to be invested. Knowledge, the end of the property invested History makes a pre-foreclosure investors very effective. No matter whether you are investing in single family houses or apartment buildings. You must know your exit strategy before you put a nickel. Effective Pre-foreclosure investors know what comparable houses are for sale in the neighborhood, if the exit strategy is to sell (flip) as investment property at a retail store buyer. If you know the rent as an investment property to stand for the monthly cash flow and long-term capital growth, the real estate investor must have a firm grasp of what the rents are in the area.
Driver: Pre-foreclosure investors need the huge economic driver in a range the biggest economic driver in any real estate market Job growth. If the employment outlook is positive, will be more jobs and more people are moving into this market. You have more companies to expand into these markets. On the flip side, when employment is stagnant or even declining, is to search the property market a hit – especially in Detroit. must Experienced investors know that property to sell houses and rent multi-family people in employment. If people do not sound employment opportunities, retail and rental markets are being affected. There are many other factors that influence the economic real estate investing market, but job growth and employment are the biggest driver. If you want to improve your skills as a pre-foreclosure investors should check each of these critical factors on each real estate investment.
Boo-Boo’s six should be in pre-foreclosure Investing Every Investor avoid
Posted by admin in Finance Saturday, 24 July 2010 08:13 No Comments
I have in previous articles about all the incredible and exciting opportunities in foreclosures – and there are many spoken! However, there are also things to watch. I wanted to share with you six cases in this article.
1 Spotting a great opportunity. . . too late
If a bank is a warning to landlords who fell behind in their payments, this remark is the official record. It is not filed with the County Recorder’s office in the appropriate county, but it is included on various foreclosure listing sites on the Internet. If you do not actively monitor these lists are, and then finally came to a great opportunity. . . it could be too late. Some other pre-foreclosure real estate investor may have already been negotiated, at home by the time you decided to contact the landlord have to buy! You must be on guard to respect and act quickly!
2 Come to gain the confidence of home buyers
Right now, before a foreclosure and foreclosure property one of the biggest games to invest in the city. So you can bet that distressed homeowners are harassed by investors promising them the world. Unfortunately, this includes various scam artists and wannabes who do not fulfill their big promises can. This leaves homeowners skeptical than ever before, so if you do not do everything you can prove that you are legitimate. . . You lose the business before you have even entered into the apartment of the owner’s door. Build rapport with the homeowner. Sympathize with their situation and emphathize and help them feel that their situation is not clear, and there is a solution!
3 Incorrect estimation of the building
Your ability to benefit, from a pre-foreclosure business is based largely on achieving a large enough margin between the market value of the property. . . and the price you can get it. While you employ a surveyor, an assessment for the value, it is really rests on her to get this right. You must consider the market value for similar properties in the area, and the condition of the house. You may have to consider all liens (unpaid property taxes, electricity bills, etc.) to attach to the property. If you wrong the value, you could put themselves in difficulties. As a rule of thumb, you want to make sure that you get such good deals that you, the home now or in the future, and still sell to a profit. If you are unsure, contact a few brokers in town to better understand what is going on that, especially in the neighborhood or area around the property.
4 Making an offer is too low. . . or too high
Make an offer is too low, and the homeowner will simply refuse. Remember, they want to get some equity or at least pay their debts with the price you offer. On the other hand, if you buy the property to offer much, you could erode your own ability to profit. This goes hand in hand with the previous point where you must first know the values. You must know the repairs and your profits. Know your numbers and you can not go wrong.
5 Not properly funding the deal
You need to finance the deal. The last thing you want to do is, itself run into financial difficulties by a loan that you can not keep! This comes with the networking with lenders, mortgage brokers, real estate agents and other investors. Talk to your Power team around you and make sure that your financing in place to purchase the property.
6th Not learn from others
Learn from others who have already experienced the pitfalls first hand how what is in http://www. ForeclosuresUnleashed. net and in the resource information below. Trial and error is the most expensive way to invest into real estate because there is such a wealth of information you have at your fingertips, to save themselves from setbacks.
These pitfalls may Basic. . . but it is often the basic things that overlooked if you are curious to find the next best offer received. enthusiastically by all means stay. . . be also aware of the pitfalls above. So you can be in good shape, would find profitable to invest in foreclosure properties
Avoid
Seven Signs That Pre-Foreclosure Investors Look For Every Time
Posted by admin in Finance Saturday, 22 May 2010 23:35 No Comments
{Hello fellow real estate investors and entrepreneurs~Hi there real estate investors and entrepreneurs~Well hello there real estate investors and entrepreneurs}.
I wanted to provide you with a checklist of “buy signals” that experienced pre-foreclosure investors look for and find when evaluating an investment property. These are sure signs that you’re on your way to buying your next investment property at a substantial discount.
{You don’t need to have all seven factors together in one place, but when you find one of these signals, the others are usually right around the corner (no pun intended)~You don’t need to have all seven in place, but when you find one, the others are usually close by~You don’t need to have all seven buy signals in place, but usually when you find one, the others are sure to follow~You don’t need to have all seven buy signals in place in order to move forward with the investment, but it sure does help}.
Buy Signal #1: Homeowner Is Behind On The Mortgage Payment
This is an obvious one, but I thought it needed to be included in the list. {Most homeowners who fall into pre-foreclosure cannot climb back out and usually end up losing the property~Most homeowners who fall behind on the mortgage payment cannot catch up and usually lose the property at foreclosure auction~Many homeowners who fall into foreclosure cannot bring their account current and end up losing the property at sale}.
{When you don’t have money to pay the mortgage, you don’t have money to maintain the house or the grounds either~When homeowners can’t afford to pay the mortgage, they cannot afford the others bills either~When homeowners can’t affored to pay the mortgage, they cannot afford to maintain the house or the grounds either~When a homeowner cannot make the mortgage payments, the property and grounds usually take on signs of neglect}.
Buy Signal #2: Grass Is Overgrown
After many years of running the streets as a pre-foreclosure investor, I learned to pick out (in an instant) the house in foreclosure as soon as I turned onto the street.
{High, overgrown grass is a sure sign that the house is in trouble and the owners (if you can find them) will have a compelling reason to sell~Overgrown grass is a sign of neglect~Overgrown grass can sometimes be telling you that the house is in some kind of trouble}.
Buy Signal #3: Windows Are Busted Out
Busted out windows are usually found in vacant or abandoned properties.
{When the owner moves out, sometimes the neighborhood kids like to get together and pull out their personal rock collections and proceed to work on their throwing motions~When a homeowner in this situation moves out, the neighborhood kids like to get together and work on their target practice~When homeowners in this situation move out, local kids sometimes vandalize the property by busting out the windows~When a homeowner in this situation moves out, the neigbhorhood kids can get together and take out the windows if you know what I mean}. {This usually involves selecting the proper target~This involves honing in on the best possible target~This usually involves picking out the right target~This usually involves knowing which target to select}.
Buy Signal #4: Rotten And Exposed Wood
A house that has extensive rotten wood on the exterior has probably been neglected for many years. {You would be amazed at what people will tolerate when it comes to sub-standard living conditions~It’s shocking sometimes what people will put up with when it comes to sub-standard living conditions~I’m always amazed at what people are willing to tolerate when it comes to sub-standard living conditons}.
{I once met with a homeowner who had a 3 foot wide hole in his kitchen ceiling~I once met with a seller who had a huge hole in the kitchen ceiling~One time I met with a seller who had a gigantic hole in his kitchen ceiling~I once met with a homeowner who ended up having one of the biggest holes in his kitchen ceiling I had ever seen}. {The whole was so big that you could see clear up to the sky~The hole was gigantic – you could see straight up to the sky~The hole was huge – you could look up and see the blue sky above~The hole was really big, in fact, you could look up and clearly see the blue sky above}. {I met with this homeowner for several hours discussing his situation with the house~I met with the seller for an extended period of time discussing the situation with the house~I met with the seller for several hours talking to him about his options with the house~I met with this homeowner for several hours discussing his options}.
{Not once did he mention the huge hole in the roof – not once~Not once did the seller acknowledge the huge hole in the roof~Not one time did the homeowner say anything about the huge hole in the roof~Not once did the seller mention the huge hole in the roof – not once}. {Very strange~This was a very strange exchange~This was a very strange experience~Very strange indeed}.
Buy Signal #5: No Garden Hose
I have found this one item in the list to be more telling than any of the others.
{For some reason, whether or not the house had a garden hose connected to the outside faucet told me if it was occupied or vacant~For some strange reason, I could tell if a house is vacant or not, by looking for the green garden hose~Without exception, the green garden hose told me if the targeted house was vacant or occupied}.
{If the hose was still connected, the house was usually occupied~If the green garden hose was still connected, the house was usually occupied~If the green garden hose was still attached to the house, it was almost always still occupied}. {If the hose was missing, 9 times out of 10, the house ended up being vacant~If the garden hose was gone, 9 times out of 10, that house was vacant~If the green garden hose was missing, in virtually every case, the house ended up being vacant~When the garden hose was not connected or missing, 9 times out 10, the house ended up being vacant}.
Buy Signal #6: No Furniture
Usually when you suspect that a house is vacant, you peer into the nearest window to confirm your gut instinct.
{You’ll know in an instant that the seller has moved on if the furniture has been removed~When you see that the furniture is missing, you’ll know the seller has moved on to another place~You’ll know that the seller has moved on when you see the furniture is missing~You’ll know instantly that the seller has moved on when you see all the empty rooms}.
Buy Signal #7: Neighbors Haven’t Seen Them
Usually there will be a neighbor or two that can tell you something about the seller.
{If there was a problem with the house and the seller couldn’t fix it, the neighbors will know about it~If the seller could fix the problem with the house, you could bet the neighbors knew all about it~If the homeowner could not fix the problem with the mortgage, the neighbors usually knew all about it}. They are sometimes a very good source of information
Shaun Steckler became financially independent by investing in houses and small apartment buildings in south Louisiana. Shaun now controls an investment portfolio that generates a five figure a month income for him today. You can learn more about Shaun?s real estate investing strategies and business models at http://RealEstate-Entrepreneur.com
The Critical Factors That Affect Buying Investment Properties For Pre-Foreclosure Investors
Posted by admin in Finance Sunday, 9 May 2010 21:31 3 Comments
With so many potential pitfalls lying in wait for the inexperienced pre-foreclosure investor, what are the critical real estate investing factors that need to be accounted for at all time?
The Location: Buying Investment Property In A High Risk Neighborhood
We’ve all heard the real estate investing mantra, location, location, location. Experienced pre-foreclosure investors can make many locations work in their favor.
A good location will produce stable and predictable outcomes for you as an investor. Property investors do not usually buy investment property in exclusive neighborhoods.
Most investment properties (for rental purposes) are acquired in the middle class, working middle class and blue collar sections of town. Property investors know that the risks go down when you buy investment property in these neighborhoods.
If you are new to pre-foreclosure investing, listen to this advice closely. Don’t even consider buying investment property in high crime areas. If there’s trash all over with young men just standing around during the middle of day, do not buy investment properties in these neighborhoods.
Even if you can buy a three bedroom two bath house for $10,000, you will only be able to rent to high maintenance tenants. And if you’re thinking about selling it, forget about it. Nobody in their right mind who could qualify for a loan would want to live there.
Pre-foreclosure investing can be very forgiving if you stay in the game long enough. If you fail to follow this investment advice, you’re going to have some really big problems. When it comes to pre foreclosure investing, stay out of the high risk areas.
The Price: Paying Too Much For An Investment Property
I think by far, the most difficult real estate investing mistake to overcome is paying too much for a piece of investment property. And here’s my logic on this.
No matter if the pre-foreclosure investor is planning to flip or rent out the investment property, he must know (in advance) how much the property will be worth in its fair market condition (after repairs).
If the property investor does not know the fair market value of the investment property, how will he know what he can afford to pay in order for the investment to make sense?
If you pay too much for an investment property, you will be working for free or even at a loss for that matter.
Even when you rent out one of these investment properties, they don’t cash flow. Which means the rental income is less than your operating expenses.
When this happens, you then have an alligator on your hands. And alligators need to eat.
If you’re going to successfully invest in pre-foreclosures, you have to know the numbers. As a pre-foreclosure investor, there is no way around this.
The Exit: Effective Pre-Foreclosure Investors Know Their Exit Strategy
Property investing can be thought of as a story that has a beginning, middle and an ending. Effective property investors know what the ending of each property investing story will be. Knowing the end of the property investing story makes a pre-foreclosure investor very effective.
No matter if you’re investing in single family houses or apartment buildings. You must know your exit strategy before you put a nickel down.
Effective pre-foreclosure investors know what comparable houses are selling for in the neighborhood if the exit strategy is to sell (flip) the investment property to a retail buyer.
If you’re going to rent the investment property out for monthly cash flow and long term capital appreciation, the property investor must have a firm grasp on what the rental rates are in the area.
The Drivers: Pre-Foreclosure Investors Must Be Aware Of The Major Economic Drivers In The Area
The biggest economic driver in any real estate market is job growth. If the employment outlook is positive, more jobs will be created and more people will move into that market. You will have more companies expanding into these markets as well.
On the flip side, if job growth is stagnant or even declining, the real estate market will take a big hit – just look at Detroit.
Experienced property investors know that in order to sell houses and rent apartment buildings people need to be gainfully employed. If people don’t have solid employment opportunities, the retail and rental markets will be adversely affected.
There are many other economic factors that affect the real estate investing market, but job growth and employment are the biggest drivers.
If you want to improve your skills as a pre-foreclosure investor, make sure you consider each of these critical factors on every real estate investment.
Shaun Steckler became financially independent by investing in houses and small apartment buildings in south Louisiana. Shaun now controls an investment portfolio that generates a five figure a month income for him today. You can learn more about Shaun?s real estate investing strategies and business models at http://RealEstate-Entrepreneur.com
Six Boo-boo’s in Pre-foreclosure Investing Every Investor Should Avoid
I have been talking in previous articles about all of the incredible and exciting opportunities in foreclosures–and there are many! However, there are also things to watch out for. I wanted to share six pitfalls with you in this article.
1. Spotting a great opportunity… too late
When a bank issues a notice of default to a home owner who has fallen behind in their payments, this notice goes onto the public record. Not only is it filed with the county recorder’s office in the relevant county, but it gets included on various foreclosure listing sites on the Internet. If you’re not actively monitoring these lists, and then finally come across a great opportunity… it could be too late. Some other pre-foreclosure property investor may have already negotiated to buy the home by the time you’ve decided to contact the owner! You need to be on guard, pay attention and act quickly!
2. Failing to gain the trust of the home owner
Right now, pre-foreclosure and foreclosure property investing is one of the biggest games in town. So you can bet that distressed home owners are being harassed by investors promising them the world. Unfortunately, this includes various scam artists and wannabes who can’t fulfill their big promises. That leaves home owners more skeptical than ever, so if you don’t do all you can to prove that you’re legitimate… you may lose the deal before you’ve even stepped in the home owner’s door. Build rapport with the homeowner. Sympathize and emphathize with thier situation and help them feel like their situation is not unique and there is a solution!
3. Incorrectly valuing the property
Your ability to profit from a pre-foreclosure deal largely rests on achieving a big enough margin between the market value of the property… and the price you can get it for. While you can hire an appraiser to get an appraisal of the the value, it really rests on you to get this right. You need to consider the market values of similar properties in the area, as well as the condition of the home. You also need to take into account any liens (unpaid property taxes, utility bills, etc) that may attach to the property. If you misread the value, you could get yourself in trouble. As a rule of thumb, you want to make sure that you’re getting such a good discount that you could sell the home now OR in the future, and still make a profit. If you are not sure, consult with a few realtors in town to better understand what is going on in that particular neighborhood or area around the property.
4. Making an offer that’s too low… or too high
Make an offer that’s too low, and the home owner will simply reject it. Remember, they want to get some equity or at least settle their debts with the price you offer. On the other hand, if you offer to buy the property for too much, you could erode your own ability to profit. This is goes hand in hand with the previous item where you need to know the values first. You need to know the repairs and your profits. Know your numbers and you can’t go wrong.
5. Failing to properly finance the deal
You also need to finance the deal. The last thing you want to do is to get yourself into financial difficulty by taking on a loan that YOU can’t sustain! This comes with networking with lenders, mortgage brokers, realtors and other investors. Talk to your power team around you and make sure you have your financing in place to purchase the property.
6. Not learning from others
Learn from others who have already experienced the pitfalls firsthand such as what is described in http://www.ForeclosuresUnleashed.net and in the resource information below. Trial and error is the most costly way to invest in real estate because there is such a wealth of information out there that you have at your fingertips to save yourself from setbacks.
These pitfalls may seem basic… but it’s often the basic things that get missed when you’re eager to find the next best deal. By all means stay enthusiastic… but also be aware of the foregoing pitfalls. That way you’ll be in good shape to find profitable pre-foreclosure properties to invest in.
Robert Lam is a successful real estate investor and author of http://www.ForeclosuresUnleashed.net which teaches investors how to maximize the profits from the booming foreclosures in the marketplace today without using your money or credit.Six Boo-Boo’s In Pre-Foreclosure Investing Every Investor Should Avoid
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