Is The Current BOOM In Foreclosures The Biggest Opportunity For Profit In Real Estate History?
Keywords: Real estate, Foreclosure, Pre-Foreclosure, Mortgage
Across North America and the world, the market correction has caused the biggest increase in Foreclosures in Real Estate History, but is there any way for us, as Investors, to profit?
The rate of Homeowners who are more than 90 days behind on their payments has increased 164% from last year, and experts say the worst is yet to come.
But can we as Investors save these homes and their owners from Foreclosure and still be profitable? The short answer is- yes, we can.
While most Investors are still reeling from the blow the market has dealt them, smart Insiders are cleaning up.
Insiders know that, especially in this current market, banks DO NOT WANT Real Estate. They want money. And that simple fact means banks will bend over backward to work with anyone smart enough to know their simple formulas.
There are three Options to consider when buying Foreclosures, and these factors will determine the exit strategy. (And if you understand the House Business, you know that the Exit Strategy determines the Buying Strategy, right!!??)
Technique 1: Repayment Schedule or Loan Modification
In this simple strategy, if you come across a property that has some equity, but may also have a TON of back payments and attorney’s fees, all you need to ask yourself is, “Will it cashflow?”
If it will, simply contact the bank and ask for a Loan Modification Agreement- which simply means that the bank will add the missed payments to the back of the loan, and structure a new debt, often without even increasing the payments.
They add the additional monies owed as additional payments to be made, lengthening the time of the opriginal mortgage by several months.
Technique 2: Short Sales
A Short Sale is simply contacting the bank and offering less than what they are owed as full payoff of the underlying financing. This technique works on properties in foreclosure.
To decide if a property is a candidate for a Short Sale, you need only ask yourself, “Do they owe more than it will sell for quickly?” If so, a Short Sale is your only choice, because there’s no point in making up the payments if they owe too much to make a profit anyway!
Technique 3: Just Sell The Darned Thing!
Since most Homeowners and Investors are struggling o sell, it’s an easy process to pick up houses at good discounts. But can you make a profit?
See, an Outsider, who doesn’t know what we do, has too many costs, fees, risks, and BS to make any money off of a so-called “Marginal” or “skinny” deal. But we have much more to offer the Seller than they do!
Here’s a Perfect Example:
Beautiful Laura, my wife, spoke with a Motivated seller about a home just 2 miles from where we live, in a High-End gated neighborhood.
The Property was in excellent condition, and worth $575,000. The seller owed $490,000 on this 5 Bedroom 4 Bathroom house, was three months behind, and wanted $20,000 out of the sale to pay their back payments and closing costs.
So what can we do? How could we possibly make a Profit? Well, it’s straightforward- Just Sell The Darned Thing!
Laura simply Optioned the property for the $510,000 price, and Marketed it through a 7-Day Sale. At a sales price to the End Buyer of $560,000, it’s a fast $50,000 Profit.
See, most people get so caught up in fees, costs, carrying costs, etc., that they can’t move fast enough to capitalize on a deal. This wasn’t even a great deal, but $50,000 is a nice paycheck!
In this Property, we paid the Seller 89% of Full Market Value and still made $50,000! And by the way, the Seller pays the customary Seller closing costs, and the Buyer pays the customary Buyers closing costs, so we pay NONE!
Most people are so concerned about stupid little stuff that they skip right over this 3rd technique, and walk away from a HUGE source of CASH PROFITS!!
The current BOOM in Foreclosures is without a doubt THE biggest opportunity to make a fortune in the history of Real Estate, and smart Insiders are raking in profits by the truckload in Markets where Outsiders are complaining because they can’t make any money!
Jason Loucks has created the “7 Day Sale” System for selling houses in just 7 days. To get your free “Secrets of the 7 Day Sale” Audio that explains the system in detail, go to: WWW.7DaySaleGuy.Com
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