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The Signs to Great Real Estate Investing - Part IIAcross the United States in the last month, over 45,000 homeowners were facing foreclosure. That's in 30 days. Those numbers are on the rise. There are ways as an investor that you can be saving a homeowner's credit even when they're on the brink of foreclosure.
Creative real estate deals can be quite breathtaking, but you have to know what you're doing. Savvy real estate investors can save a homeowner from foreclosure any number of ways. All they have to do is be able to read the signs and be able to find homeowners in need. Pre-Foreclosure Deal A house that is on the market is so for a reason. Don't feel one bit hesitant about calling the homeowner and discussing terms. If you dig long enough and ask the right questions, you might find that the homeowner is actually in trouble and trying to bail out before ruining their credit. If a homeowner is facing foreclosure, you might be able to work your way into quite a lucrative investment. It is a known fact that lending institutions don't necessarily like to fool with real estate. They aren't in the real estate business. So, take advantage of that knowledge and learn how to approach both the troubled owner and the lending institution with a savvy offer that puts a smile on everyone's face, especially yours. Subject-to Deal Subject-to deals offer investors a chance to control properties that they normally wouldn't be able to afford. Costs are very low to get started and the profit potential is unbelievable. I listened to one real estate investor who told me that he had made $30,000 on a property facing foreclosure. He offered the seller $10,000 in 14 days which she jumped on and he was able to get $30,000 in equity on a home she only owed $26,000 more to own. Deals like this are all over the place because sellers are often in so much trouble they will literally jump at anything to keep their credit intact. Short Sale A short sale is an offer to the lending institution at far below what is owed. One deal in particular involved an offer of $115,000 to a lending institution that was due $120,000. The deal actually also involved a second mortgage of $10,000 being forgiven by a credit union. They actually had no choice really. It was a sweet deal. The seller walked away with credit intact and the real estate investor sold the property to the tune of a $20,000 profit. When sellers are in trouble, real estate investors are in a great position to help them out of their situation. For one, a real estate investor knows the options and can walk a seller through them. Another thing is that the real estate investor thinks business while the seller might be wrapped up emotionally. Thinking in business terms frees the mind to come up with very creative real estate deals like pre-foreclosure, subject-to and short sale. Stay tuned for Part III of The Signs to Great Real Estate Investing. Meanwhile, 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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