As anyone with even casual acquaintance with national news headlines is cognizant, the count of foreclosures taking place has shattered all former records. While this is plainly a disaster for the homeowners losing their homes, its also a annihilating situation for lenders who cant afford to take so many REO properties back into their inventories. For real estate investors that know how to take advantage on this chance it is an unprecedented opportunity for profit " and a chance to help others at the same time. Here are three ways you can take advantage of the opportunities available in todays red-hot foreclosure marketplace:
Foreclosure Once a homeowner has defaulted on their mortgage loan, theyve begun the countdown to foreclosure. At this stage, the homeowner has confronted the reality that they could lose their dwelling. Some are holding out hope that a heaven-sent solution will happen that will abruptly cure their financial troubles, but many others are simply searching a way out that will permit them to retain some of their self-respect " and their credit rating.
A very good method of identifying these foreclosure opportunities is by scouring foreclosure filings and then contacting homeowners with a solution to their problems. You can approach homeowners in person, but a better way is to send a personalized letter explaining how you can help them and why you are the best person to help them out of their situation. You might give a brief explanation in your letter of how you propose helping them, but the most critical thing your letter MUST do is make a personal connection with the homeowner with a call to action. Ask them to contact you TODAY so you can explain all of the options available to the homeowner. Improve your chances of success with this strategy by following up with a phone call. Be relaxed, honest, and willing to help. The homeowner will appreciate your candor and will be much more willing to reward you with a go-ahead to help them.
Post-foreclosure Once the foreclosure is complete, the homeowner is out of the picture. Now the lender has an REO that they desperately need to get rid of " quickly. As a real estate investor, youre in the unique position of being a solution to the lenders REO problem. Lenders are saddled with so many REO properties that many of them are willing to discount them for as little as 40 to 50 cents on the dollar. Offers that lenders would have rejected with contempt a year or two ago are being accepted with gratitude today. So be professional " and ready to get a good deal.
Pre-foreclosure While I wont teach pre-foreclosure strategies, some real estate investors have had success by trying to beat the competition to the punch and buying a distressed property before it shows up on foreclosure lists. There are several ways of doing this. One of the best is by advertising your willingness to purchase the home of a homeowner who may be facing foreclosure.
Homeowners know before anyone that theyre in serious trouble, so if theyre facing an impending divorce, job loss, or payments they cant afford, they know before theyve even missed a payment that something needs to be done. You can advertise for pre-foreclosures in the classified section of your newspaper, on bandit signs, or even Craigs List. When these desperate homeowners contact you for solutions you can buy subject-to the existing financing, by utilizing partners, or even by doing a short sale. Your options are wide open. Listen to the needs of the homeowner and craft a solution that meets their needs " and funnels cash into your bank account!
Foreclosure Once a homeowner has defaulted on their mortgage loan, theyve begun the countdown to foreclosure. At this stage, the homeowner has confronted the reality that they could lose their dwelling. Some are holding out hope that a heaven-sent solution will happen that will abruptly cure their financial troubles, but many others are simply searching a way out that will permit them to retain some of their self-respect " and their credit rating.
A very good method of identifying these foreclosure opportunities is by scouring foreclosure filings and then contacting homeowners with a solution to their problems. You can approach homeowners in person, but a better way is to send a personalized letter explaining how you can help them and why you are the best person to help them out of their situation. You might give a brief explanation in your letter of how you propose helping them, but the most critical thing your letter MUST do is make a personal connection with the homeowner with a call to action. Ask them to contact you TODAY so you can explain all of the options available to the homeowner. Improve your chances of success with this strategy by following up with a phone call. Be relaxed, honest, and willing to help. The homeowner will appreciate your candor and will be much more willing to reward you with a go-ahead to help them.
Post-foreclosure Once the foreclosure is complete, the homeowner is out of the picture. Now the lender has an REO that they desperately need to get rid of " quickly. As a real estate investor, youre in the unique position of being a solution to the lenders REO problem. Lenders are saddled with so many REO properties that many of them are willing to discount them for as little as 40 to 50 cents on the dollar. Offers that lenders would have rejected with contempt a year or two ago are being accepted with gratitude today. So be professional " and ready to get a good deal.
Pre-foreclosure While I wont teach pre-foreclosure strategies, some real estate investors have had success by trying to beat the competition to the punch and buying a distressed property before it shows up on foreclosure lists. There are several ways of doing this. One of the best is by advertising your willingness to purchase the home of a homeowner who may be facing foreclosure.
Homeowners know before anyone that theyre in serious trouble, so if theyre facing an impending divorce, job loss, or payments they cant afford, they know before theyve even missed a payment that something needs to be done. You can advertise for pre-foreclosures in the classified section of your newspaper, on bandit signs, or even Craigs List. When these desperate homeowners contact you for solutions you can buy subject-to the existing financing, by utilizing partners, or even by doing a short sale. Your options are wide open. Listen to the needs of the homeowner and craft a solution that meets their needs " and funnels cash into your bank account!
About the Author:
The opportunities are real " and the profits can allow you to generate instant equity and residual income that you make a generational shift in your familys financial future. For free tips, tools, and advice on how to capitalize on todays foreclosure crisis, check out Reak Estate Power Investor
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