I Know You Want A Foreclosure
Please don’t take my house.
Dog eat dog world.
The sad thing is that you will profit from foreclosures.
If you have a list that will feed you.
Access The Flock.
There are benefits to purchasing foreclosures
I don’t really know what the benefits are from investing in foreclosures.
People care about cash.
If you are buying the place then you can do all kinds of fancy strategies with the tenant. If they turn out to be homeless… you can find them a home! And profit!
I like keeping tenants happy. Happy customers are the hallmark of any business.
That might just be blowing smoke and no one agrees with. So let’s just focus on the dollar.
Here is an article on managing tenants. Just screen for tenants!
You might not want a homeless person for a tenant. But you might want someone that just faced foreclosure.
There are credit cards that repair credit over the term of a rent-to-own purchase contract.
Give the person that faced foreclosure a budget and help manage their story as they make payments.
You can control tenants with the dollar. I have written a few articles about managing relationships with tenants.
Apparently tenants break doors. I don’t really like that saying but it is monopoly after all.
Do you get a return when you invest in foreclosures.
No one seems to care whether you are rehabbing the property to improve neighborhoods.
When you buy foreclosures you can stretch your dollar. This means that you can possibly afford to buy in more profitable neighborhoods and do repairs.
I have motivated sellers all over the U.S. in the hottest markets that you can access.
Investing in more profitable neighborhoods means that you will get your ideal pick of tenants — compared to investing in demographically poor neighborhoods.
It takes a deal to attract a cash buyer.
It used to be that accessing these pocket listings was the hardest part; Finding a good deal.
Now you can log on to the internet, get a name and access even more listings — sometimes.
I’d like more listings to appear on Access The Flock; It’s a great communication channel.
But if you meet someone on Access The Flock and hear about even more listings then you are getting even more access.
Foreclosures take investment.
Some realtors say that flippers don’t make money buying, repairing, and selling foreclosures.
I know of a couple great neighbourhoods that have benefited from rejuvenation that comes from turning an old house into something modern.
And they have made money!
Do you have access to the Flock?
Get a buyer and make a deal.
There are risks to investing in foreclosures
No one wants to embarrass themselves unless you are a professional.
The risks are making the deal.
Some blogs advocate that it takes time to deal with banks. There is a difference between foreclosures and short sales in some jurisdictions. You can buy foreclosures some places before the banks acquire while with short sales banks already own them and might be tougher to negotiate with.
Banks might actually have a good negotiating process. But, if you read my 20 Creative Real Estate Investing Strategies there is a section on short sales and it says you can wait one year before being able to acquire property from a bank. REO.
I don’t want to talk about the downside of investing in foreclosures. You could lose your shirt.
If the lifetime of the property runs out.
The other risk is weather. Right now there is a Hurricane in the southern states and the Flock are still receiving emails.
One serious risk of investing in foreclosures is foreclosure.
You could lose all of your money and face bankruptcy multiple times on your way to success!
If you would like more motivation please scroll to the top of the page.
Keep your contracts in a specific location that you can access. Use a calendar to remind yourself of the end of contracts.
Have a plan for what happens at the end of a contract.
If it is a rent-to-own strategy that you are doing with the foreclosure, make sure that you know if you are selling the property and what is happening to the funds from the tenant.
If it is a buy and hold then keep track of tenant agreements and key dates in those contracts.
Some lawyers consider foreclosures predatory and may tell the motivated seller not to go with agreements that are profitable.
Access The Flock.
These are some of the benefits and risks to investing in foreclosures.