It's true what they say about the rich continuing to get richer and it's especially with the many opportunities today. By investing money in the housing foreclosure market you can make huge profits. For many investors, the foreclosure market is seen as a huge opportunity. But for others, this opportunity is not as appealing because it comes on the backs of average working Americans. It's just not as easy to live with. If you feel like this, you should know that it's possible to make money on foreclosures while still being able to sleep at night. Here's what to do.
A lot of those people who are in danger of losing their homes to foreclosure are good honest citizens who have unfortunately gotten caught up in a very bad situation. They might have lost a job due to economic conditions. Then there was the mortgage mess created with subprime interest rates which caused the value of homes to plunge. As a real estate investor, you have to accept the fact that there is really very little you can do to change any of this.
But there is a way that you can help and still turn a big profit. You are buying lots of houses for only pennies on the dollar, so in actual fact you have very little money that is tied up in any house. Here's how to help.
If you are purchasing a number of homes in an area, you may have several options. You could try to dump them all at one time, selling to another investor for a profit. Another option might be to just let them sit empty until after the crisis is over and the housing market begins to rebound. At that point you can sell and make your money. A third option might be to rent these houses out.
When people are losing their home in the foreclosure process, they do eventually have to move out. When this occurs they have to try to find a rental unit, or move into the house of a family member or friend, or still worse find out they have nowhere they are able to go to. Not one of these scenarios is ideal, especially when children are involved. A much better option for them would be to lease a house at a cost they could afford.
This could be a win-win situation for both parties. You get to collect rent on houses you've purchased. This can help you to more quickly recover your expenses and even make some profit. The house you rent out will be lived in so your insurance costs will be less. And then when the economy picks up again, you'll be able to resell the house for an even greater profit.
The feel good part happens on both sides. Families get decent housing at an affordable-for-them price. You might even consider offering your tenants the chance to buy the house when they get back on their feet. Settle on a price and you might not have to even worry about finding a buyer later. Even giving them a great deal you will still be earning far more than what you paid originally, if you think back to the pennies on the dollar price you paid.
If you decide to do this, it's going to be way more likely that your tenants will be sure to take good care of your property because one day it might be theirs.
When the day arrives that they're in the financial position to buy, you may want to give some thought to holding a private mortgage. If they've been able to meet their financial rental commitments on time, you could simply maintain the arrangement so they end up still paying you. That way there won't be any problems with them trying to get a mortgage just because they suffered through a foreclosure.
If you are thinking that this is a crazy idea and it won't work, you'd be wrong. That's because this exact plan has been used by quite a few investors.
In an interview not long ago, one of these investors said he feels good because he's able to help people who've lost their home because of foreclosure. Both sides win. His tenants get a good place to live and raise a family, while he collects rent money with even more profit to come whenever he decides to sells the property.
If these investors can do it, how about you? Make money on foreclosures and still sleep at night. What a great concept.
A lot of those people who are in danger of losing their homes to foreclosure are good honest citizens who have unfortunately gotten caught up in a very bad situation. They might have lost a job due to economic conditions. Then there was the mortgage mess created with subprime interest rates which caused the value of homes to plunge. As a real estate investor, you have to accept the fact that there is really very little you can do to change any of this.
But there is a way that you can help and still turn a big profit. You are buying lots of houses for only pennies on the dollar, so in actual fact you have very little money that is tied up in any house. Here's how to help.
If you are purchasing a number of homes in an area, you may have several options. You could try to dump them all at one time, selling to another investor for a profit. Another option might be to just let them sit empty until after the crisis is over and the housing market begins to rebound. At that point you can sell and make your money. A third option might be to rent these houses out.
When people are losing their home in the foreclosure process, they do eventually have to move out. When this occurs they have to try to find a rental unit, or move into the house of a family member or friend, or still worse find out they have nowhere they are able to go to. Not one of these scenarios is ideal, especially when children are involved. A much better option for them would be to lease a house at a cost they could afford.
This could be a win-win situation for both parties. You get to collect rent on houses you've purchased. This can help you to more quickly recover your expenses and even make some profit. The house you rent out will be lived in so your insurance costs will be less. And then when the economy picks up again, you'll be able to resell the house for an even greater profit.
The feel good part happens on both sides. Families get decent housing at an affordable-for-them price. You might even consider offering your tenants the chance to buy the house when they get back on their feet. Settle on a price and you might not have to even worry about finding a buyer later. Even giving them a great deal you will still be earning far more than what you paid originally, if you think back to the pennies on the dollar price you paid.
If you decide to do this, it's going to be way more likely that your tenants will be sure to take good care of your property because one day it might be theirs.
When the day arrives that they're in the financial position to buy, you may want to give some thought to holding a private mortgage. If they've been able to meet their financial rental commitments on time, you could simply maintain the arrangement so they end up still paying you. That way there won't be any problems with them trying to get a mortgage just because they suffered through a foreclosure.
If you are thinking that this is a crazy idea and it won't work, you'd be wrong. That's because this exact plan has been used by quite a few investors.
In an interview not long ago, one of these investors said he feels good because he's able to help people who've lost their home because of foreclosure. Both sides win. His tenants get a good place to live and raise a family, while he collects rent money with even more profit to come whenever he decides to sells the property.
If these investors can do it, how about you? Make money on foreclosures and still sleep at night. What a great concept.
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