Getting Your Foot In The Door Of Preforeclosed Homeowners
This can be vary frustating for most investors simply because of "FEAR".
"FEAR" has been the most prevalent factor in life that has kept many investors from being successful. "FEAR" of the unknown! "FEAR" of rejection! "FEAR" of doors being slammed! "FEAR" of what your customer may say!
Take the "FEAR" of success quiz at: http://www.fortune.com/fortune/quizzes/careers/fearsuccess_quiz.html
Many investors believe that successful investors are simply in the right place, at the right time and their is some truth to this but the fact remains to be a success in this game one needs the proper mix of:
Luck + knowledge + compassion + skill = success
Getting your foot in the door of a foreclosure prospect reaches beyond what most of us have been taught in seminars, books and tapes. It boils down to an attitude, a state of mind, emotion and a person of action.
It takes courage, creativity and consistency to walk up to someone's front door and knock!
Courage is simply the ability to acknowledge one's fear and to simply do or should I say walk past the fear and become a person of action.
The “Have-Nots”: What fear has to offer!
Fear of the Unknown Procrastination Lack of Education Complacency Poor Self Control Fear of Success World of Scarcity Skepticism Low self-esteem Hopelessness
The “Haves”: Overcoming fear offers!
Desire/Drive Commitment/Dedication Discipline Education Courage Determination Experience Perseverance Organization Optimism
Your most powerful weapon against fear is to simply take action. Action is "Knowledge" with knowledge of foreclosure and the foreclosure process along with the understanding how foreclosure will affect your customers future you will gain a greater understanding of your customers needs and situation. Your next step in this is "Creativity" this is an art, a skill or as some put it "Quick on your toes". Getting your foot in the door of a preforeclosed homeowner is all about trusting your creativity. Most successful investors trust their intuition, that inner knowing or that small still voice to lead them through the door of the unknown.
You must be willing to explore the unknown, you must be willing to face rejection, doors being slammed, what the customer may say to you and when you become a person of action the magic of a doer takes over and success will be knocking at your door.
Success is often the result of tiny little actions. It's called "Consistency" consistency is simply the result of taking actions on a daily basis of putting together your list of potential customers, by getting in your car, by driving neighborhoods of potential deals and most importantly getting out of your car and knocking on ones door and offering your services!
When you have all the above in place you will have more opportunity to be creative and walk in courage!
The art of the deal is not profit, but knowing you provide a service that provides help a way out for the homeowner that is facing foreclosure.
When your focus is off profit and on providing help to homeowners profit will come!
Saturday, December 26, 2009
How to Maximize Your Success in Buying and Selling Distressed Real Property
How to Maximize your Success in Buying and Selling Distressed Real Property
Today, more than ever before, we are bombarded with “get-rich-quick” schemes in the media. In this modern electronic age of 24/7 where the separation between work and pleasure is blurred by constant demands for higher and more immediate productivity, the allure of these so-called business opportunities with the promise of more money with less work is the modern “cry of the sirens”: even the most sophisticated among us are drawn toward the dream of chucking the “rat race” in favor of working as your own boss, making huge dollars. Today, one of the most heavily advertised opportunities on the internet, (seemingly second only to the spam avalanche for increased sexual performance) is buying and selling distressed real property. Here, supposedly free lists of foreclosures are marketed with the “promise” that even the uninitiated in real estate investment can profit greatly. If you are looking for quick solutions, click on the “Viagra” advertising, because speculating in distressed real property, while potentially very profitable, requires much more knowledge and attention to detail than advertised. So, before you yell, “Take This Job and Shove It,” and delve into the list of properties in foreclosure for “buy low, sell high” opportunities, this article will provide you with some practical suggestions for avoiding a bad investment experience with distressed real property, potentially leading to your own financial distress.
The first step toward successfully investing in distressed real property is understanding the nature of the problems associated with the ownership, use or occupancy that make the real property distressed. The most common problem leading to distress is a foreclosure. Foreclosures involve liens. Liens are an interest in real property held by a creditor, consensually or non-consensually, often to secure an obligation of the owner or a prior owner of the property. In a foreclosure, a holder of a consensual lien (mortgage) or a non-consensual lien (involving creditors: mechanics lien, broker’s lien, tax lien, municipal lien or judgment lien) is seeking to extinguish the interests of subordinate lien creditors (those with lesser rights) and rights of the owner of the real property; and to sell the real property at a judicial sale to satisfy the indebtedness securing the foreclosing lien claimant’s lien. Most states, like Illinois, require real property foreclosures through a lawsuit, with the owner and all other interest holders given an opportunity to be heard in court. Mortgage foreclosure laws are harsh, but generally provide the property owners an opportunity to reinstate a mortgage on residential property or to pay-off the indebtedness securing the mortgage, prior to the loss of the property through judicial sale. Foreclosures often involve complicated issues of law and fact, and this is especially so when the owner of the property seeks to stop a foreclosure through the filing of a bankruptcy petition.
Numerous “problems,” other than foreclosures, can cause real property to be “distressed.” Any of the following situations, some which do not involve the financial distress or creditor issues of the property owner, can cause property to be “distressed,” and thus present a great investment opportunity for the knowledgeable investor: (a) serious disagreements between owners of the real property, including stemming from a divorce or dissolution of a business organization related to the real property; (b) environmental contamination of the property; (c) unpaid real estate taxes ; (d) the inability to obtain municipal authority for the use or proposed use of the property; (e) real property involved in a bankruptcy case; (f) landlord-tenant disputes; (g) probate and inheritance problems; (h) building, fire and other municipal code violations; (i) disputes arising over the rights of non-owners to enter or use the property through easements or licenses.
While the truism of “location, location, location” might apply to real property in general, the axiom for distressed property is “homework, homework, homework.” This represents the second and most important step in successfully investing in distressed real property. Investigating distressed property includes the typical “due diligence” required for non-distressed property, plus an exhaustive, on-going review of all legal, business and financial matters that are causing, complicating or mitigating the distress of the property. This investigation requires much more than just the typical fact-gathering. Distressed property can involve a veritable minefield of complicated legal and financial problems, which, at first glance, might make the purchase price attractive, but could lead to great expense after the purchase.
In all business acquisitions, a good, fluid and flexible strategy is very important. This is especially true in acquiring distressed property because the purchase of “distressed” real property often does not involve a willing seller, at least at the early stages of “distress.” And, as the investor approaches the latter stages of distress, when the owner’s consent is no longer or less of an issue, or the owner is more desperate and commensurately more amenable to a sale, the competition among interested buyers increases dramatically. Timing is critical: positions and motivations change quickly with distressed property. An investor in distressed property must have the ability to close a deal quickly, especially where there is competition for the property. To be a “player” in this arena, “Cash is King”: you need immediate access to money to close, and you cannot delay the deal with financing contingencies or otherwise involving your prospective lenders. This is especially true with foreclosures where the sale is an auction.
Because so many aspects of distressed property involve technical legal issues, sharing the responsibility of pre-sale investigation and formulating an acquisition strategy with a competent lawyer is critical to avoiding pitfalls and increasing the likelihood of success. Having ready access to qualified real estate professionals as advisors is another important step in successfully investing in distressed property, where the investor must rely on a qualified lawyer to assist in maneuvering through the potential mine fields. But, in this age of legal specialization, it is difficult to find a lawyer that has sufficient breadth of experience in all of the important areas of real estate litigation and development, bankruptcy and insolvency, mortgages, credit facilities, leasing, brokerage and construction law relating to residential, commercial and industrial properties. The search for a qualified lawyer is as important as the search for qualified properties. Seeking advice from real estate professionals, coupled with the investor’s own investigation is advisable. But, the savvy investor should not substitute his own “hands-on” investigation, without the assistance of a qualified lawyer, in the hope of saving on professional fees. In the end, this could lead to a very costly mistake.
So, go ahead and download that list of foreclosures from the internet! There are great opportunities in buying and selling distressed real properties in this economy, especially when interest rates are low and there are qualified buyers available to “flip” the properties to realize a quick profit. And remember, with good professional assistance and careful investigation, the risks of investing in distressed properties can be greatly minimized with substantial returns on your investment.
Today, more than ever before, we are bombarded with “get-rich-quick” schemes in the media. In this modern electronic age of 24/7 where the separation between work and pleasure is blurred by constant demands for higher and more immediate productivity, the allure of these so-called business opportunities with the promise of more money with less work is the modern “cry of the sirens”: even the most sophisticated among us are drawn toward the dream of chucking the “rat race” in favor of working as your own boss, making huge dollars. Today, one of the most heavily advertised opportunities on the internet, (seemingly second only to the spam avalanche for increased sexual performance) is buying and selling distressed real property. Here, supposedly free lists of foreclosures are marketed with the “promise” that even the uninitiated in real estate investment can profit greatly. If you are looking for quick solutions, click on the “Viagra” advertising, because speculating in distressed real property, while potentially very profitable, requires much more knowledge and attention to detail than advertised. So, before you yell, “Take This Job and Shove It,” and delve into the list of properties in foreclosure for “buy low, sell high” opportunities, this article will provide you with some practical suggestions for avoiding a bad investment experience with distressed real property, potentially leading to your own financial distress.
The first step toward successfully investing in distressed real property is understanding the nature of the problems associated with the ownership, use or occupancy that make the real property distressed. The most common problem leading to distress is a foreclosure. Foreclosures involve liens. Liens are an interest in real property held by a creditor, consensually or non-consensually, often to secure an obligation of the owner or a prior owner of the property. In a foreclosure, a holder of a consensual lien (mortgage) or a non-consensual lien (involving creditors: mechanics lien, broker’s lien, tax lien, municipal lien or judgment lien) is seeking to extinguish the interests of subordinate lien creditors (those with lesser rights) and rights of the owner of the real property; and to sell the real property at a judicial sale to satisfy the indebtedness securing the foreclosing lien claimant’s lien. Most states, like Illinois, require real property foreclosures through a lawsuit, with the owner and all other interest holders given an opportunity to be heard in court. Mortgage foreclosure laws are harsh, but generally provide the property owners an opportunity to reinstate a mortgage on residential property or to pay-off the indebtedness securing the mortgage, prior to the loss of the property through judicial sale. Foreclosures often involve complicated issues of law and fact, and this is especially so when the owner of the property seeks to stop a foreclosure through the filing of a bankruptcy petition.
Numerous “problems,” other than foreclosures, can cause real property to be “distressed.” Any of the following situations, some which do not involve the financial distress or creditor issues of the property owner, can cause property to be “distressed,” and thus present a great investment opportunity for the knowledgeable investor: (a) serious disagreements between owners of the real property, including stemming from a divorce or dissolution of a business organization related to the real property; (b) environmental contamination of the property; (c) unpaid real estate taxes ; (d) the inability to obtain municipal authority for the use or proposed use of the property; (e) real property involved in a bankruptcy case; (f) landlord-tenant disputes; (g) probate and inheritance problems; (h) building, fire and other municipal code violations; (i) disputes arising over the rights of non-owners to enter or use the property through easements or licenses.
While the truism of “location, location, location” might apply to real property in general, the axiom for distressed property is “homework, homework, homework.” This represents the second and most important step in successfully investing in distressed real property. Investigating distressed property includes the typical “due diligence” required for non-distressed property, plus an exhaustive, on-going review of all legal, business and financial matters that are causing, complicating or mitigating the distress of the property. This investigation requires much more than just the typical fact-gathering. Distressed property can involve a veritable minefield of complicated legal and financial problems, which, at first glance, might make the purchase price attractive, but could lead to great expense after the purchase.
In all business acquisitions, a good, fluid and flexible strategy is very important. This is especially true in acquiring distressed property because the purchase of “distressed” real property often does not involve a willing seller, at least at the early stages of “distress.” And, as the investor approaches the latter stages of distress, when the owner’s consent is no longer or less of an issue, or the owner is more desperate and commensurately more amenable to a sale, the competition among interested buyers increases dramatically. Timing is critical: positions and motivations change quickly with distressed property. An investor in distressed property must have the ability to close a deal quickly, especially where there is competition for the property. To be a “player” in this arena, “Cash is King”: you need immediate access to money to close, and you cannot delay the deal with financing contingencies or otherwise involving your prospective lenders. This is especially true with foreclosures where the sale is an auction.
Because so many aspects of distressed property involve technical legal issues, sharing the responsibility of pre-sale investigation and formulating an acquisition strategy with a competent lawyer is critical to avoiding pitfalls and increasing the likelihood of success. Having ready access to qualified real estate professionals as advisors is another important step in successfully investing in distressed property, where the investor must rely on a qualified lawyer to assist in maneuvering through the potential mine fields. But, in this age of legal specialization, it is difficult to find a lawyer that has sufficient breadth of experience in all of the important areas of real estate litigation and development, bankruptcy and insolvency, mortgages, credit facilities, leasing, brokerage and construction law relating to residential, commercial and industrial properties. The search for a qualified lawyer is as important as the search for qualified properties. Seeking advice from real estate professionals, coupled with the investor’s own investigation is advisable. But, the savvy investor should not substitute his own “hands-on” investigation, without the assistance of a qualified lawyer, in the hope of saving on professional fees. In the end, this could lead to a very costly mistake.
So, go ahead and download that list of foreclosures from the internet! There are great opportunities in buying and selling distressed real properties in this economy, especially when interest rates are low and there are qualified buyers available to “flip” the properties to realize a quick profit. And remember, with good professional assistance and careful investigation, the risks of investing in distressed properties can be greatly minimized with substantial returns on your investment.
Foreclosure Home Deals
Did you know that you can save tens of thousands of dollars on the purchase of your home by investing in a foreclosure or preforeclosure property? When you are trying to purchase a home for the first time, and you have limited resources and limited funds, it is particularly important that you get the most "bang for your buck".
One way for a young family to get the most home for their money is to purchase a "distressed" property. With research and due diligence, you may just end up with a larger or nicer home than you thought you could afford, but without the extra price tag. One way to accomplish this is by purchasing a property that is in foreclosure. You may want to look for an REO Foreclosure.
What's an REO Foreclosure? This stands for "Real Estate Owned", or in other words,property that was foreclosed upon by the bank holding the mortgage, and now belongs to the bank. But, the bank is a bank and not a real estate investment firm. They are simply not in the business of residential real estate and have no interest in the home other than to recoup their investment.
How does this benefit you? Well, more than likely the previous owners of the property have been making payments on it for some time, bringing down the amount the bank was owed and increasing the equity in the property. Since the bank is only concerned about recouping what they are owed and not really attempting to make a profit, then you can essentially reap the benefit of the equity in the property and purchase the home for what is owed which is likely well below current market value.
This approach while simple in theory does require research, time, fixup, and perhaps even cash upfront. This approach is not for everyone, but if your situation allows for it, you may be able to snag a great deal on a nicer home than you could otherwise afford.
One way for a young family to get the most home for their money is to purchase a "distressed" property. With research and due diligence, you may just end up with a larger or nicer home than you thought you could afford, but without the extra price tag. One way to accomplish this is by purchasing a property that is in foreclosure. You may want to look for an REO Foreclosure.
What's an REO Foreclosure? This stands for "Real Estate Owned", or in other words,property that was foreclosed upon by the bank holding the mortgage, and now belongs to the bank. But, the bank is a bank and not a real estate investment firm. They are simply not in the business of residential real estate and have no interest in the home other than to recoup their investment.
How does this benefit you? Well, more than likely the previous owners of the property have been making payments on it for some time, bringing down the amount the bank was owed and increasing the equity in the property. Since the bank is only concerned about recouping what they are owed and not really attempting to make a profit, then you can essentially reap the benefit of the equity in the property and purchase the home for what is owed which is likely well below current market value.
This approach while simple in theory does require research, time, fixup, and perhaps even cash upfront. This approach is not for everyone, but if your situation allows for it, you may be able to snag a great deal on a nicer home than you could otherwise afford.
Listings for foreclosed homes in each foreclosure state
and residences,and other forms of bank foreclosed properties, in each forecloser state. View potential investment
properties including nationwide foreclosed home for sale and real estate suitable for use by business, investors and buyers.
Listing information is fast and easy to search, we simplify your search on each foreclosure state and have compiled
comprehensive real estate data.
There are numerous advantages to buying a home in foreclosure, there are incredible savings, buying a larger and more
valuable home via foreclosure than you could ordinarily afford. A foreclosed home is sold for the appraised value at the time
of foreclosure. When a foreclosure home is under-appraised, it is given a list price below the market value. The sheer number
of these foreclosure homes result in countless-valued foreclosure homes. Take advantage of the volume
of foreclosure homes, and profit from it.
foreclosure investing, property investing, bank foreclosures. Interested in buying a foreclosure home? Determine which
foreclosurehome best suit your short-term and long-term needs. Do not be in a rush to purchase a foreclosure home. Another
deal is just around the corner, and you can learn as much from a home you did not buy as you can from the one you did.
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