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Investing in Foreclosure is a Win-Win Opportunity for EveryoneOther than making huge profits, wouldn’t it be great if you could help people too? As a real estate investor, you actually might find yourself in the perfect place to help a community. As reported in the New York Times, the convention center in Riverside, California recently held an auction where hundreds of foreclosed houses were bought by people of all economic status. Foreclosed homes aren’t necessarily a sign of good times. But as a real estate investor, it’s the perfect opportunity for you. Foreclosed homes mean several things:
What could you do in this situation? Well, for starters you can help people out of their troubles. But, you also get to enjoy the beautiful profits while doing it! Investing in housing facing foreclosure is a win-win situation. People in Distress The convention center in Riverside, California was full of properties facing foreclosures. There were investors in the audience. But, there were also people just looking to buy. Jumping on the situation is what makes you a hero. You can offer a distressed family a way of getting out from under their mortgage. They are over three months behind on the mortgage. Who knows how much more in the hole they are than that. That means that they could be behind a few thousand dollars. They may not have the resources to catch up on their mortgage and more cost effective housing is looking very attractive to them at that point. Rather than let them walk away from their home and look for more affordable housing with their credit ruined, offer to take over the mortgage and catch them up on their payments. They will be very grateful to move out as long as they can keep their credit and not have to go through an embarrassing episode such as a foreclosure. Low Cost Housing Out of 100 houses placed in the Riverside auction, 93 sold like hot cakes. But, the Real Estate Disposition Corporation, the company holding these auctions, had auctioned nearly 300 houses during two weekends in May. Auctioneers are acquiring housing way below appraisal. A four bedroom, 1800+ square foot house went for $25,000 below its actual value. A three bedroom house in Cathedral City eventually went for $109,000 below its actual value. A four bedroom, 2500+ square foot house went for nearly $100,000 below its actual value. It was quite a remarkable day. Even if you can’t discover a foreclosure before a distressed family loses their home, there is still going to be a great deal on it after the fact. Incentives You can put yourself into a great position when you pay attention to housing trends in your area. Foreclosures are often published in a local paper. But, there are other ways to learn about foreclosures. Keeping your ears open, word of mouth can hand you a foreclosure on a silver platter. When you hear about a foreclosure, your best move is to address the distressed family personally and make arrangements to take over the mortgage. You can write a contract between you and the person facing foreclosure. Put down a few thousand dollars, take over payments, make home improvements and flip the home for profit. You’ll see that it’s easier than you can imagine. In Riverside, people flocked to see what kind of deals they could get on a home in foreclosure. Investors will always be available. You’ve saved a family from credit ruin and you’ve got a new buyer to absorb all of your upfront costs. Unbelievable Profit Potential When a home is going for over a $100,000 less than its actual value, there’s a remarkable profit margin built into your investment. You may need to make some improvements, but you’ll still make great money. Could you imagine finding a deal like that once a year? That one deal is a decent yearly income. Savvy investors are making deals like that all year long. Foreclosure investing really is a win-win situation for everyone involved. The distressed family receives help out of their impossible situation. You get low-cost housing to make for more attractive deals. Owner incentives make it easier for you to move on the house. And the profit potential can be absolutely amazing. Start applying these principles today and begin flipping real estate for FREE by starting your 7 Day Trial at INSTANTRealEstateSolutions.com! Brad Wozny |
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