|Real Estate Information|
Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit
One of the quickest ways to real estate profits is through preforeclosures. What is a preforeclosure, exactly? A preforeclosure takes place from the time the bank gives notice of default to the time the house sells at auction. Typically, this is around the time of 90 days into default, depending on state law.
The key to preforeclosure investing is equity - the difference between what a house will sell for and what is owed on the house. Preforeclosures allow you to buy a house for less than fair market value, creating immediate equity for yourself.
Preforeclosures are your opportunity to buy low and sell high, maximizing your profit quickly. How can you cash in on preforeclosures and exit with the maximum profit?
Here's how to do it.
Step 1. Find and Secure the Preforeclosure
You must submit a written contract directly to the owners in order to buy a preforeclosure, since the property still belongs to them during this stage. Ads in newspapers and subscriptions to preforeclosure listings will help you locate the properties. (See more about this in article 1.) Once you've located a property, you'll need to do the following to screen them and prequalify your homeowners:
· Find out all you can about the physical and financial details of the property. (Are there liens? Loan balances? Major repairs needed?)
· Gather correspondence from the lender(s) that will fill in the details the owners may not be fully aware of or may not full understand.
· Meet with the homeowner at their property and have them sign the documents that place you complete control of the house.* Make sure that you know who ALL the owners are, and that are serious about selling before you start negotiating a deal.
* Note: Do this quickly once you have decided you are interested in the property as a solid real estate investment. This will help you turn around your equity quickly!
Once you establish that you are there to help the homeowners, you can make a reasonable offer that will that will help you achieve the profit you're looking for.
Step 2: Begin Your Pre-Sale Marketing
One of the most important steps in securing your preforeclosure is to begin marketing as soon as you have your paperwork in order. It's time to cash in on your equity.
Here's how to get started:
Stake your claim - literally.
You're going to need a heavy supply of signs. Once your paperwork is in order, take a picture of the front of the property. You'll want to keep some "For Sale by Owner" signs in the back of your car and have them ready once you have finished your meeting with the owner. You may want to put out a "Rent to Own," sign as well. Play real estate agent - put signs around the neighborhood with arrows leading to the property for sale.
Place your ads -- begin prospecting.
Place ads similar to the signs in local newspapers. Expect a good influx of phone calls. When the phone rings, find out if the prospective buyer is an investor or a prospective occupant. Collect the caller's email address, phone number, and fax number.
You'll begin your own list of investors this way, and you can notify them of properties you're selling in the future as well. Real estate agents will also call in based on your newspaper ads.
Step 3: Screen your buyers - and make the sale.
Be carefully when you screen potential buyers for your preforeclosure. Let them know that they'll need to be flexible, patient, and, of course, financially qualified! Make certain they know the home is being sold as-is condition. Once the paperwork has been approved, they'll have to close quickly, usually within 30 days.
If you haven't received an offer that meets your standards, it's time to move forward with the auction.
Many preforeclosures reenter the market through auctions. You can hold the auction yourself or use a professional company to auction the property for you. It's best when starting out to get the advice of two different auction companies. They'll be happy to give you advice on whether the property would be a good property to auction off or not, based on the asking price.
The main advantage of professional auctions is the fact that they will do all of the marketing and auction announcements. You can let them handle the auction details, including screening of the buyers. If you don't get the reserve price you're seeking, you simply pay a fee to them to help cover their cost.
If your property doesn't sell on the first try, you can retry the auction again at a later time while you work on unloading other properties.
Just remember to keep your prospect list growing as you advertise other properties, and soon enough, you'll have a healthy list of prospects vying for your investments. Once you've sold enough preforeclosures, investors will begin to contact you based on past sales and word of mouth. All of your hard work can help you increase your investments and quickly cash in on your newfound wealth - equity!
Richard Odessey along with his wife Michelle are founders of the premier site on the internet - http://www.InvestorWealth.com for training and teaching real estate investors to do high profit deals. They offer regular Free Teleseminars by the top real estate investors in the country and offer how-to tools and kits like the Deal Evaluation Tool (http://www.1shoppingcart.com/app/adtrack.asp?AdID=143414) to help investors to faster and greater real estate success. They also offer 4-8 hands-on training seminars with personal advice from experts that investors can take from the comfort of their home. Richard and Michelle have been investing for over 5 years and personally teach and mentor other investors.
This article may be reproduced in its entirety only if unaltered and the resource box is included.
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Rutgers Real Estate School releases landmark study on school-aged children in multifamily properties - ROI-NJ.com
A Coast real estate agent cried when a judge told her how long she could spend in prison - The Sun Herald
How dirty is Miami real estate? Secret home deals dried up when feds started watching - Miami Herald
Real estate briefs: New coworking brand, California industrial investor, Engel & VĂ¶lkers ink new deals - Chron.com
3 of the 5 Ways Real Estate Can Take Advantage of Blogs and RSS
Earlier this month, Realtor Magazine announced that they would be featuring an article about Tampa Bay Realtor John Mudd and the success he has been having in attracting prospects and media attention with his blog on real estate. Since then, many others in the Real Estate market have been curious about how to implement similar strategies to capture leads in their areas.
How To Find An Experienced Monticello Illinois Realtor
Finding a professional Monticello Realtor in Illinois is the best way to find the perfect property or home. A licensed realtor can assist you in locating the type of property you want in the price range you desire.
Evil Gains Entry
When we open our doors to strangers, we can never be certain what malice an outsider might bring in. Police officers tell us to keep our doors locked with good reason.
Essential Buyer's Guide for Overseas Real Estate
It's been said many a time that overseas real estate buyers leave their brain on the plane when they step out into the sun in their overseas destination of choice. They've already fallen in love with the country, its people, climate and lifestyle and they've come to snap up that dream home.
How to Buy a Property in Bulgaria
The CostAlthough the property prices in Bulgaria are quite low compared to the other European countries, there is still a wide variety of prices depending on the property type and location (as a rule the properties in Sofia and at the Black Sea are more expensive). The first thing you will need to figure out is how much you can afford to spend and thereafter to determine the price range for your purchase.
Personal Debt Can Disappear When You Set up a New Business
I teach students how to set up a new business name on paper and then move their personal debt into the business name.This will dramatically improve your personal credit score and help you make money as a real estate investor.
How to Buy Your Own Home
Buying Your First HomeBuying Your Own Home isn't nearly as complicated as some folks make it out to be. Your first step should probably be to contact a Mortgage Broker (check out the on-line Mortgage Companies on my Site -- they're a great way to quickly find out how much you qualify for, and they often have better rates than the standard Banks.
10 Top Considerations For Those Buying Property Abroad
Are you one of a growing number of people considering buying a second home in the sun, an idyllic home from home abroad or a lucrative investment property overseas? If so you're not alone! Statistics show that globally we're all on the move with a recent survey by YouGov revealing that 55% of adult Britons were "seriously considering settling in another country" and the British Centre for Future Studies predicting that by 2020 one tenth of the current British population will be living or working abroad!Add to this the fact that there was a 250% increase between 2000 and 2004 in the number of Britons buying property abroad solely for investment purposes, that over one and a quarter million Brits own second homes in Spain and France already and that the Office for National Statistics in the UK recently revealed that 200,000 Britons go overseas yearly with the intention of remaining for at least twelve months, and you can see that the passion for buying that dream home abroad is universal.But what's fuelling this ever growing interest in the overseas property market?Well, despite reports to the contrary the UK housing market is seemingly ever on the up and those Britons who're acquiring massive levels of equity through their residential property are considering selling up, buying abroad and establishing a pension fund simply on the back of what they have left over from their house sale.
How to Decrease the Value of Your Own House
Owning a house is part of the American Dream. Depending on where you live in the US - home ownership can be around 70%.
Seller Financing - Six Safety Tips
Why offer seller financing when you sell? A higher price, a good return on your money, a faster sale and to sell a property that is otherwise difficult to sell. Some good reasons, but how do you do it safely?1.
Working With Your Real Estate Attorney
Purchasing or selling a home will probably be one of your largest and most important financial transactions. Before signing a contract to purchase or sell a home, both buyer and seller should consult an attorney to assure that the real estate transaction will be handled legally and professionally.
Understanding Opportunity Cost When Investing In Property
While most investors have got involved in property investing because they understand the opportunities to make money through leverage and capital growth or high yields, I still see and hear of many who do not fully understand opportunity cost.Remember anyone that gets into property is usually in it to generate money or income - how many deals/properties you own is insignificant.
Home Staging: How to Make Your Tract Home Stand Out in the Crowd
Home sellers who wish to market their property in development neighborhoods face tough challenges. All the houses look similar.
What is a Predatory Lender?
Several months ago, the 3,000-member California Association of Mortgage Brokers (CAMB) created the first real definition to describe the abusive lending practices of predatory lenders. According to the CAMB, predatory lending was described as "placing consumers in loan products with significantly worse terms and/or higher costs than loans offered to similarly qualified consumers in the region for the primary purpose of enriching the originator and with little or no regard for the costs to the consumer.
8 Essential Questions to Ask Your Home Inspector
Congratulations! You've decided to purchase a home. We all know that when purchasing a home, every detail is an important one.
How to Choose Your Real Estate Lender
Because you need quick action when applying for a real estate purchase loan, find a lender you can access easily. A lender's quick response signifies good service to follow.
Cutting Edge Real Estate: Is There Anything New? Part 1
The world of real estate has pretty much stayed the same for decades. It's no different today than it was 50 years ago.
Real Estate Investing - Finding Cheap Houses
Real estate investing expertise can certainly accommodate the luxury home market. In some ways, the upper end of the housing marketplace produces easier success than the lower end.
Protective Covenants - Buying A Home
In addition to zoning, some properties have covenants recorded at the courthouse that "run with the land." These "protective covenants" can put a serious pinch in your plans for a piece of property.
Buying and Selling Real Estate in Florida
Florida is known as the "Sun Shine" state, and the reason is clear. People move to Florida for many reasons, but most that move there stay there.
|home | site map|