7 Big Reasons To Invest In Pre-Foreclosures
by: Ben Innes-Ker
Looking for an “in” to real estate investing?
Working a nine to five job swapping time for money can be incredibly dispiriting. After the futility of it all hits home, it’s all you can do to limit the number of home business opportunities you investigate to twenty per week.
One of the more compelling home business opportunities is real estate investing. Real estate investing is the perennial wealth builder, and the transition from working a job to achieving wealth through real estate investing is becoming increasingly well documented.
You’ve probably thought about investing in real state yourself but you’ve not gone for it because you thought you needed tens of thousands in savings for a down payment, and perfect credit along with strong banking relationships.
Well, you can get all that together if you want. It doesn’t hurt to have those resources. But it’s not necessary to have a huge pile of cash and perfect credit to buy a house cheap and resell it for a profit.
It’s especially not necessary in the preforeclosure market. Preforeclosures are houses in the default phase of foreclosure; where the bank has filed initial foreclosure papers but the Sheriff Sale or Trustee Sale where the bank auctions off the property, or repossesses it if no-one buys at the auction, hasn’t occurred yet.
Buying during the preforeclosure period is one of the best ways for anyone to get involved in real estate investing. With little more than a few hundred dollars and some specialized knowledge you can buy a house at a substantial discount and resell it retail picking up a five figure profit check in the process.
Don’t believe it?
Well, let me give you seven reasons why it’s true:
1) When people are in default on their mortgage they have stopped making payments to the bank. So when you are negotiating with the seller, and the bank, right up until the point where you buy, no-one is making the payments. For novice investors worried about holding costs this is a huge advantage.
2) Preforeclosures are a very well defined niche market. One of the most deadly mistakes rookie investors make is trying to be a jack-of-all-trades, going after any and everything they can lay their eyes on. The result of this lack of focus is they are soon back at their jobs. By being a very defined market, preforeclosures allow you to develop focused marketing campaigns and standardized processes to get deals completed and closed.
3) One of the fundamentals of real estate investing is contacting and talking “only” to motivated sellers, and avoiding all the rest. Sellers in preforeclosure are some of the most motivated sellers you will find. Their world has been turned upside-down, they are about to lose their house, and their motivation is such that they just want out of the house and the bank off their back. By buying houses from people in preforeclosure, creating 30%+ equity spreads on houses often in good condition is not a difficult thing to do. (continued...)
7 Big Reasons To Invest In Pre-Foreclosures
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About The Author
Ben Innes-Ker is a full-time real estate entrepreneur, best-selling author, and real estate investing warrior. He has developed the "Motivated Seller Magnet - automatic lead generating system" to help real estate entrepreneurs and investors attract more motivated sellers with less effort and increase profits. To learn more about this powerful step-by-step program and receive your free special report, go to http://www.motivatedsellermagnet.net.
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