HOW 2 BUY 4-CLOSURES 4 PENNIES ON THE DOLLAR
THE OPPORTUNITY – Foreclosures are at their highest level ever. In Las Vegas, NV, in the 1st quarter of 2008, 72% of all real estate closings were foreclosures. In Stockton, California, foreclosures represented 45% of all real estate closings for the same period of time. In 2009, foreclosures have escalated across the country providing great opportunity for investors.
FORECLOSURES – Have been around forever, but are in greater abundance today than ever before. How did this happen? Homeowners were under qualified. They took on too much debt. They were hoping for appreciation. The market lost steam. Many owners simply walked away from properties that were worth less than they paid.
THREE PHASES – Foreclosures are divided into 3 phases: Pre-foreclosures, Auctions, and REO’s. Knowing the difference between these phases drastically increases your chances for “Cash At Closing”.
WHY INVEST? – Opportunity, opportunity, opportunity. The trend is for foreclosures to grow. Falling property values. ARM’s resetting. Notes coming due. Lower interest rates. And, unstable markets and economy. However, knowing what to buy and when to buy is crucial.
REASONS WHY – Job losses. Need for cash. Business failures. Divorce & Death. Mortgage resetting. Job transfers and relocations to new areas in order to secure jobs. And finally, out of state owners.
PRE-FORECLOSURE – Locating or discovering properties that are in default prior to their going on the auction block. Learn the reason why property is in default. You as an investor may be able to help by taking an equity position in the property. You can actually solve borrowers’ problem and earn money for yourself at the same time.
FINDING FORECLOSURES – There are many ways in which to find foreclosures. Classified Ads, Legal newspapers, Attorneys, FSBO, Realtors (Short sales/REO’s), Auction companies, IRS auctions, Government auctions (DEA seizures), Bankruptcies, Probate Courts, and County courthouses.
IDENTIFYING – Target which phase of the foreclosure market you want to work. Decide how you will find foreclosures. Identify the best choice of funding options and, Identify your exit strategies. This brief outline sets out just some of the building blocks you will need to be successful in creating wealth through foreclosures.
Griff Peterson
