Finance

Jonni Good asked:


I've known a lot of people who have lost money when they sold their homes. In fact, I'm one of those people, and it's happened to me more than once.

There are a number of factors can cause a financial loss when you sell your house, including the need to sell at the wrong time due to divorce or an impending foreclosure, or a downturn in the local real estate market. However, it's also common to lose money simply by making too many expensive changes to the house before putting it on the market. This is how I lost money on real estate, before I wised up.

My most resounding failure in the fix it and flip it market was a house I bought in Spokane, Washington. Knowing what I know now, I would have restricted myself to replacing the carpets and the kitchen and bathroom fixtures, painting inside and out, and buying new appliances. I probably would have replaced the old-style windows, too, to make the place look nicer and appeal to the energy-conscious buyer. These fixes could have been done easily within the two years I needed to live there to avoid capital gains taxes.

Since I didn't know what I know now, I made major renovations, which included moving the bathroom. I did most of the work myself, but the materials alone cost more than I could get back when the house was sold. With the exception of repairs done to the house to make it eligible for an FHA loan and watering the grass, I doubt that any of my major projects really helped me sell the house or increased its value.

If a house is actually sound, with no structural damage or insect problems, the biggest reason it will sell for less than its worth is usually cosmetic. This was certainly true of the house I bought in Spokane. Dirty carpeting, and a wall in the living room covered with mirror tiles, kept most buyers from going any further into the house. I could see past the cosmetic problems and see the home's full potential - but my imagination went a bit too far.

The floor plan was odd, and slightly inconvenient, but leaving the bathroom where it was would have been far more rational, financially. Why didn't I do that? Because my emotions and my nesting instincts took over, pushing aside all thought of future gain or loss.

Let's face it - most people don't buy their own homes with the intention of making a profit, although they certainly hope the house will be a good investment. In fact, the emotional stress caused by the process of buying a house and moving into it can be enough to completely erase any thought of moving again a few years later. However, I know several families who have made a very good living by buying underpriced homes, living in them and fixing them up, and then selling them when the IRS will allow them to do so without paying extra taxes. Clearly, these folks don't make any changes to these houses without carefully considering the bottom line.

After my Spokane adventure, I decided to learn from my mistakes, and find out how to stop losing money on houses. I read books by authors who are experienced in fixing and flipping houses - and then read them again. When I saw that most remodeling projects almost never recoup their costs when the house is sold, I was a little shocked, because I had been guilty of almost every mistake on the list at one time or another. I know many people who have also made the same mistakes, even when they started those remodeling projects with the intention of increasing the value of their homes.

When I bought my next house, I kept that list very firmly in mind. For instance, my kitchen was badly in need of a major overhaul, (or so I believed), and it was far too small. I pored over the latest home decorating magazines, and ideas came flooding into my head. I thought about knocking out some walls, and I even tried to imagine adding on to the house to make the kitchen bigger. New cabinets would be needed, and new appliances...

In the end I painted the kitchen cabinets and replaced the sink with a new one I purchased at Ikea. I covered the chipped orange Formica counters with printed cotton fabric, and coated it with many layers of water-based Verathane that was intended to protect wood floors. The complete "remodel" cost less than $400, as opposed to the thousands of dollars that I would have spent if I followed through on my idle dreams of a "perfect" kitchen. Since the house sold at a very good price within two weeks of listing it, my buyer obviously didn't mind that the kitchen didn't meet my idea of perfect. Because I kept my costs down, I made a handy profit on the sale.

Would I have been able to sell the house for more money if the kitchen had been remodeled and expanded? Perhaps, but not enough to cover the cost of the remodel. Although the National Association of Realtors lists a kitchen remodel as one of the projects that will increase a house the most, they still advise that you should expect to get back only 80% of the costs. If your new kitchen is far fancier, bigger, and more expensive than any other kitchen in the neighborhood, the returns will be even less. A full kitchen remodel can cost thousands of dollars, so the 20% you don't get back can be a big chunk of change.

Does this mean that you shouldn't make changes to your home that would make you happy? Not at all, especially if you intend to live there for many years. But it does pay to sit down with your spouse or partner before you start making your remodeling plans, determine exactly how long you'll be staying in the home, and then think about the full financial implications of the remodeling project. Even if you don't think of yourself as a professional house flipper, it might pay to slow down a bit and find ways to improve the home without spending money you'll never see again. As a bonus, your family might be able to avoid the stress and disruption of all that remodeling mess.



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Heather Seitz asked:


meowner becomes delinquent on their mortgage payments the lender begins the lengthy foreclosure process. If no attempts are made to reconcile the debt with the lender, then the property is auctioned off at the public courthouse. A single foreclosed property purchased at an auction can easily earn an investor a years worth of investment income. Right now is perhaps the best time in the history of real estate to invest in foreclosures with a record number of foreclosures reported last year. There are plenty of deals available to the general public but the trick is knowing how to find them

Despite what infomercials on television might tell you, investing in foreclosed homes is not as easy as just walking over to the courthouse. There is a lot of homework that needs to be done before a foreclosed home is purchased at auction. The key to successful investing, especially in real estate, is research. What you know can make all of the difference. If you want to be successful with foreclosures you have to be willing to spend some time doing some research

The internet has made performing research of any kind very easy. While researching a foreclosure online you can easily come across all kinds of valuable information. If you are going to be bidding on a property you need to know what the market value of the home is, and there are a number of free online services that allow you to research the market value of a house for free. However, in order to obtain the most reliable data on market values you will need to join a real estate membership site. A membership site will allow you to obtain up-to-date real estate information and foreclosures at a nominal fee.

Foreclosures have a tendency to be in a state of disrepair by the time they reach the auction block. Only a tiny fraction of foreclosed homes that reach the auction block are in move in condition. This means you need to be prepared to estimate renovation costs to the foreclosed property you are looking at. Unfortunately, many states prohibit you to enter a foreclosed home until after the auction is over. If you live in such a state you should consider speaking with a realtor in your area. Chances are a realtor will know someone who was involved in the foreclosure.

With a little research and patience you can easily find foreclosure deals at auction. But if you really want to make a profit with foreclosures you should consider investing in a foreclosure list service. Such a service will provide you with foreclosure deals as they come available and before they reach the auction block. The earlier you buy the property the better.



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Jonathan Heusman asked:


Finding investors for a home that is in foreclosure should not be difficult in theory – inexpensive prices, quick sales – why are investors so hesitant to invest in foreclosure properties? Here are some things that you should know when searching for investors to purchase your first investment foreclosure property. Keep in mind that investors come at a cost, the only investors that are free of interest rates, charges or fees are most often friends and family.

Consider searching for investors through a private investor site. These are available if you search the internet, and come at cheaper interest rates than the traditional methods. Many real estate professionals seeking investors are using the internet as a valuable tool to search for investors, join investor and investment pairing websites, this strong internet marketing campaign has been a success for many. Often, at minimal cost, full features are available to take advantage of the vastness of the internet.

A well designed site can not only attract real estate investors but also those sellers facing foreclosure. This powerful tool will create a strong internet marketing campaign and can demonstrate immense professional images for the business. Many small companies are choosing to create an internet presence and enhance the legitimacy of their companies.

Investing with family and friends in a rental property, a real-estate flip, or an investment for the future can be a great way to share the profits, and the work involved in the renovations. This way, profits are shared within a group of people that have ties with each other. Family investment groups are growing in popularity. Investing with family has the benefits of no interest charges, or fees if the buyer is borrowing the money – with the intention to repay within a set amount of time but can put strain upon the relationship should one side of the relationship not fulfill their end of the contract.

A more traditional method to finance your real estate investment, and finance a foreclosure is through a hard-money lender. The hard-money lender will generally charge a percentage of the amount borrowed – rather than an interest rate, or what is known as points. Six points would be six percent of the transaction, in where each percent represented one percent. Therefore, if you borrowed $100,000, at 6 points, that would be $6000. Many of these lenders will charge merely the interest and they get the principal back in full. Interest rates can be higher (up to twenty percent) and terms are shorter – but if you are looking for a guaranteed route to finance the foreclosed home, than this may be an option to consider.

All of these ways may yield positive outcomes for the investor, and the homeowner. It is important to maintain open, ethical, and legally binding contracts with investors. Ensure that investors are kept up to date on progress if they choose, and determine the type of relationship that will exist, as well as the input that will be allowed before any investment capital is accepted.



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Jeanette Fisher asked:


eginning real estate investors get started by flipping real estate to make quick cash. If you would like to make more money by investing in real estate, you need to know a few essentials.

What is the definition of real estate flipping?

Simple definition: Buying property and reselling quickly, hopefully for a great profit. Usually, people think of flipping houses, or the buying and selling of a home fast, as the only way to make money flipping real estate. However, some investors specialize in other types of real estate such as land or strip centers. Some confusion arises over the process of making money flipping property. People who specialize in finding bargain real estate, obtain a purchase contract, and then sell the contract before taking title to the property are known as "Bird Dogs." These beginning real estate investors get started with no money down by: Finding a seller under stress with a bargain property Securing a sales contract Selling their contract for roughly $500 to $5,000 to a seasoned real estate investor Isn't real estate flipping illegal? Flipping real estate isn't illegal.

However, many unscrupulous investors committed mortgage fraud to make fast money. Some of these investors, working with mortgage brokers and appraisers, resold houses to unqualified buyers inflating the property value and home buyer's qualifications. Often these home purchases had no money or little money down. When these new home owners defaulted on the mortgage payment, the mortgage lenders lost money because the house wasn't worth the inflated purchase price. To avoid legal problems in real estate flipping, don't commit mortgage fraud.

To make money real estate flipping:

1. Prepare your financing so you can close on a deal quickly.

2. Learn your market so you know what makes a good deal.

3. Find a bargain property owned by a seller under stress to sell.

4. Secure a purchase contract in your favor.

5. During escrow, plan your selling actions.

6. Close on the property on time.

7. Immediately set your selling plan into action. If the property needs fixing, be prepared to get this done right away.

8. Market your property to your target market. Don't just list the property and hope for the best.

9. Find a qualified buyer. Have a loan officer check to make sure your buyer meets all the mortgage requirements.

10. Stay legal.

Don't use an inflated appraisal. Don't gift your buyer the down payment. Don't help your buyer create false W2s, write phony credit letters, or prepare any false documents. You can pay many of your buyer's closing costs to make the purchase easier. You can make money flipping real estate.

Buy low, sell for full-market value, avoid mortgage fraud, and enjoy your profits! Copyright © Jeanette J. Fisher

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Amelie Mag asked:


Many people don’t have a clue about foreclosures. Or they have heard the word and think of them as discounted houses, but they are not aware of why they have been labeled under the foreclosed home type. Moreover, they tend to believe that foreclosures and repossessed houses are completely different categories and ask clarifications for each of them.

To start with, repossessed houses and foreclosures are quite close to be perfect synonyms. Both terms denote a property where the bank or the lenders have taken possession from the homeowner. The only difference is that foreclosures has a more general meaning, equally referring to foreclosed homes as well as to foreclosed properties, while repossessed houses is further particular and explicit. What really matters is the fact that they are great investment opportunities.

Repossessed houses are great investments especially for customers with a small budget, but with a big desire to buy a nice home for their families. At the moment, most people have assumed that, with their limited finances, they will never be able to but even a small house, especially given the costs of real estate getting bigger and bigger. But with the entry of repossessed houses or foreclosed houses the circumstances have become quite encouraging. Moreover, with a carefully thought bid, the right house for your family can be achieved for a 20-25% lower price than the real market price.

Repossessed houses or properties are a great investment option and it does not matter whether you are it as an individual or as an investor. There are many reasons for buying foreclosures. As an investor, once you bought a repossessed house way below the market price, you can have it repaired and then sell it at a higher price. This is a sure way of making some good profit. Individuals and investors take advantage of the fact that the owners of such repossessed houses, either government agencies, financial institutions or banks, are more than eager to sell these properties and get their money back, thus being willing to accept a lower price, a low cash down payment or flexible sales agreements. Moreover, when the owner of the foreclosure houses is a lending institution, you are most likely to be offered a good financing of the foreclosures.

The good price might be the main reason that makes foreclosures incredible bargains, but it is not the only one. Buying or investing in repossessed houses means also a fast return on the investment. Foreclosure houses usually need minor cosmetic repairs to make them ready to accommodate residents or to resell, so the investment will quickly increase in value. Repossessed houses are effortless to locate online, due to reliable foreclosures specialized companies such as foreclosureconnections.com. They offer comprehensive foreclosures listings, including complete description of the property, full legal description and street address, contact information, price and so on, and a 24/7 service provided by a team of real estate professionals.



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Mike Kar asked:


Most of us think of properties that have gone into foreclosure as old, beat up places that no one would want to buy.

However, the truth is that in today's unstable economy, more and more gems are going into bank foreclosure simply because the owners of these properties have fallen on hard times. While mortgage lenders work with homeowners for a while to avoid the foreclosure process, eventually those who cannot pay their home loans lose their homes.

Many people realize that they can benefit from foreclosures by buying REO foreclosure properties. REO stands for real estate owned, and these properties are usually owned by the lender that held the mortgages.

When a homeowner cannot pay the mortgage back, the bank will repossess the property, evict the homeowner, and then look to quickly unload the home before losing any more money. Because the lenders goal is to get rid of the property without losing any money, rather than make a huge profit off of it, those who purchase these REO foreclosure properties can often turn them around and sell them for a decent profit.

Is there risk involved with this process? As with any investment opportunity, there is. However, because there is almost always a demand for homes, buying bank foreclosure properties is a fairly solid investment. The trick to making it work is knowing what type of home to buy. Not all foreclosures are going to be easily sold.

If you are stuck sitting on a property for several months, paying a mortgage payment each month, you may lose money on the deal. Certainly you will put yourself in a financial bind for those few months you are holding the property. To successfully invest in bank foreclosures, you must be able to recognize the types of properties that will resell well.

Also, the amount that of equity in the mortgage is important when you are investing in foreclosures. Remember, the banks goal is to avoid losing money on the deal, not making a huge amount of money. Therefore, the bank is going to offer the property for sale at a price that is close to the amount still owed on the mortgage.

For example, if you are interested in purchasing a property that you think will bring $250,000 on the market, but the previous homeowner still owes $230,000 on the mortgage, you are not going to get the home for much less than $250,000. You will not make much money investing in this piece of real estate. However, if you can find a home worth $250,000 that is for sale for $200,000, you will make a nice profit from this sale.

In order to make bank foreclosure investing work, you must know the real estate market in your area and be able to tell the approximate value of a home.

While there is tremendous potential for those interested in investing in REO foreclosure properties, there is also a tremendous amount of competition in this field. Many investors who have a decent amount of capital to use in their investments already have relationships with mortgage lenders.

This means that the lenders alert them to properties before they hit the open market. For this reason, the average real estate investor needs to find these properties before they go into bank foreclosure in order to make a profit. These homes are called pre-foreclosure homes.

The biggest reason that pre-foreclosure homes are the best investment for the new investor is because there is less competition surrounding these homes. Also, the sellers and the bank are generally quite motivated, because selling the home before it goes into bank foreclosure saves everyone both time and money.

Investors are willing to give you their money to work with to purchase these homes because they are usually available for a deep discount.



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Joseph Kenny asked:


Foreclosure investing is a form of real estate investment. It is one of the best investment options as far as returns on investments are concerned. Foreclosure investment opportunities are normally created when homeowners default on monthly installment payments and the bank confiscates their property. The property is then sold at a foreclosure auction. Foreclosure investment opportunities are also available when a homeowner tries to sell the property directly to the ready buyers, before the foreclosure is announced. Information about such auctions is readily available on the Internet. You can use the information to invest in properties that have the potential to maximize your investment returns, in the next few years.

It is a buyer's market

The foreclosure investment market is often called a buyer's market because buyers are in a better position to negotiate the price of the property and other related terms and conditions in a deal. A homeowner, who has not made timely payment towards a mortgage loan, is usually aware of the fact that the property will be confiscated and he will not be able to profit from the sale proceeds. To avoid foreclosure, homeowners try to sell their property and use the proceeds for applying for new mortgage loans or buying new properties. Generally, owners who want to avoid the impending foreclosure have only 60 to 90 days to sell the property, before it is evaluated at a public trustee sale. According to certain state laws, homeowners are even given the option to reclaim their property within 360 days. Homeowners, who do not use this option, if available, will not be able to stop the lenders from foreclosing the properties and eventually selling them at a public auction.

Cheap and low risk investment option

Investing in foreclosure properties is probably the cheapest way of maximizing your investment returns. If you conduct a thorough research, you can easily identify and buy properties at very reasonable prices. In the past, there have been properties that were sold at discounts as high as sixty to eighty cents to a dollar. The foreclosure investment market is considered a low risk one, since land is a scarce resource. The value of the land will definitely rise, even if the real estate market witnesses a downtrend.

Other benefits

There is no dearth of foreclosure properties in the market. In order to buy a foreclosure property, you may not even have to apply for a bank loan. You just need to identify a suitable buyer, who is willing to pay the right price. Foreclosure properties are either sold at auctions or the buyer sells it directly.

As compared to the regular real estate market, the foreclosure properties market has a fewer investors. This makes it a lot easier to find and buy properties below the existent market rates. It is anticipated that the foreclosure properties market is set to grow at a steady pace in the next few years. The investment thus made is worth all the initial effort and patience applied. The foreclosure investment market offers real value on the money spent and re-evaluation of the property always reveals that the price paid was well below the existent market value.



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Brenda Cote asked:


Foreclosure is a process in which a piece of real estate becomes the property of a lending institution due to the legal owner's inability to make scheduled payments on the mortgage or deed of trust.

Typically, the lender files a notice of default after a homeowner fails to make his or her mortgage payments for several months. If the loan is not reinstated, the lender moves to foreclose. As a result, the lender becomes the new legal owner of the property and has the right to resell the property and recover any outstanding loan balances in addition to foreclosure expenses.

The foreclosure process consists of three stages: pre-foreclosure, which begins the redemption period; foreclosure, which is when the home is sold at a public auction; and post-foreclosure, which is when the property reverts back to the lender if it fails to sell at the public auction. Although each stage offers bargain-buying opportunities, the pre-foreclosure stage is considered by many real estate investors to be the most promising time to purchase during the foreclosure process.

Investing in pre-foreclosures means you will be acquiring property any time before the scheduled public auction. As the investor, you will be buying the property directly from the owner. The earlier you contact a homeowner in pre-foreclosure, the more time you will have to make a connection, structure a deal and purchase the property.

There is a common misconception that real estate investors purchasing homes from owners facing foreclosure are taking advantage of the homeowner's misfortune. This is simply not true. A Notice of Default is filed only when a borrower (property owner) has broken the terms agreed upon with lender at the inception of the loan in default. This breech gives the lender every right to protect its financial interests. Therefore, an experienced real estate investor becomes the problem solver by finding a win-win solution that will help the homeowner get out of default.

Property owners facing foreclosure are typically scared or in denial. Many of them hope some miracle will happen that will make their ordeal simply go away. Doing nothing will certainly ensure a homeowner's foreclosure, loss of home, loss of equity and credit rating damage for an entire decade.

When dealing with an owner in pre-foreclosure, talk to them as soon as possible. It is vital to explain the following three benefits of avoiding foreclosure:

1. Protects their credit

By working with an investor, homeowners may be able to avoid foreclosure and begin rebuilding credit. Even if a homeowner endures the process of losing his or her home, the repercussions of a foreclosure on a credit report are far reaching. A poor credit rating affects everything from buying a car to renting a home. With certain businesses, credit is even a factor in employment. Investors often help homeowners protect credit.

2. Make a profit

While it is true that real estate investors purchase at a discount, a homeowner facing default may still be able to recover some of their equity and walk away with profit.

3. Get a fresh start

Stopping the foreclosure allows homeowners to breathe a sigh of relief. As the pain and pressure of the foreclosure lifts, they find it easier to move on and begin rebuilding their life.

Buying in the pre-foreclosure stage can be the most lucrative slice of a real estate investor's business. Once rapport and trust have been established, a professional real estate investor can determine whether the sale of a property would truly benefit everybody involved.

There are various ways to profit while helping people find viable solutions for their defaults. The following three are most common:

1. Purchase at a discount

Real estate investors are not likely to make a profit by purchasing at full market value. As an investor, it is essential to inform potential sellers that you earn your living from your profits. Therefore, you must buy for less than retail price while taking into account acquisition, sales and holding costs and any necessary repairs. A discount of twenty to thirty percent of full market value is common practice among real estate investors.

2. Buy property "subject to" the existing loan

There are widely spread rumors that it is illegal to purchase property that involves taking over an existing mortgage. This is completely false. While assumable loans are practically extinct, it is perfectly legal to purchase property subject to an existing loan. It is important to be aware of the "due on sale" clause stating the existing lender can call the loan due upon the transfer of title. In other words, the lender has the right to demand full payment of the outstanding loan balance at the time of transfer. In practice, lenders would rather receive their monthly payments than call the loan. Purchasing property subject to the existing financing means a smaller out-of-pocket investment for the real estate investor.

3. Create instant equity utilizing a Short Sale

Structuring a Short Sale can prove profitable when dealing with a homeowner facing foreclosure whose property is equity deficient. In this market, troubled lenders would rather discount their mortgages than increase their already mounting inventory of foreclosed properties. The type of discount you create will largely depend on the quality of your Short Sale package combined with the quality of your negotiating skills.

Real estate investors prevent a large number of foreclosures every year across the country. There are many ways for investors to make a profit while helping people move on with their lives.

Undoubtedly, the money is there to be made. Pre-foreclosures are a fabulous way to make it.



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Jason Loucks asked:


Is home-flipping legal or not? At seminars, I'm often confronted by people who insist "Flipping" is illegal.

What they don't understand is that the part that's "illegal" isn't the transaction, it's the mortgage fraud that some unscrupulous people commit in order to get the deal funded.

When you use an "Option to Purchase" to control a house and sell it, the end buyer is responsible for their own financing. That means no "fudging" on your part, and no possibility of fraud.

The Buyer agrees to pay a certain amount, and has a down payment and credit to match, and knows the deal. They haven't been misled, and you haven't helped anyone commit fraud.

The problem comes in when the seller and the Buyer are working together to get an unqualified Buyer a loan they really shouldn't get. As an example, here's what some people consider "flipping":

They'll buy a house, or even just contract it, and then turn around and sell it to an unsuspecting homebuyer or Investor, often from out of town or with no Real estate experience, and usually with no money down or for very little down.

Next, they'll bribe an appraiser to give a fictitious appraisal, much higher than the true Comparable sales. They'll work with a mortgage broker who will show the borrower how to submit false documents to the mortgage lender to qualify for a loan they often can't afford.

Then last but not least, they'll forge the closing statements from the Title Company to show a down payment and/or closing costs coming from the borrower, in order to get the bank to fund the deal.

Is this what you consider "Flipping"? Bribing appraisers and falsifying loan documents and paperwork? If so, then you're right, it is illegal.

But when you "Flip" a house by selling it for retail price to a retail buyer, who works with a legitimate appraiser and Mortgage Broker and gets their own financing, with no "funny stuff," there's nothing even slightly illegal or grey about it. It's simple and easy, with no B.S.

Some people are just simply SOOO lazy that can't be bothered to buy houses at a discount- instead, they falsely jack up the price, bribe an appraiser to confirm it, and try to pass them off onto an investor or homebuyer who commits mortgage fraud to get them funded. THAT is illegal.

Don't get me wrong, I don't have a whole lot of pity for the Buyers in those fraudulent transactions. They are the ones buying houses without enough common sense to even check the value first!

Here's something else you should learn from this: These supposed "victims" (who all volunteer to commit mortgage fraud and know what they are doing, by the way) buy these properties at grossly inflated values based on appraisals someone else ordered for them. (I know, it's hard to imagine they were taken advantage of, huh?)

NEVER believe what someone tells you about a property without verifying it for yourself. That means you have to do your Due Diligence- check every assumption- about the property BEFORE you buy it, not after.

While house flipping has gotten a bad reputation in the last few years due to a few bad apples, it is still a great way to get into Real Estate Investing if you know what to watch out for. Done properly, house flipping is legal, moral and ethical, and is a great way to invest in real estate without tenants, rehabs, or risk.



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Masni Rizal Mansor asked:


If you are interested in a way to get involved in the real estate industry you should look into foreclosure investing. Many people avoid this type of investing because they are not aware of the details that go along with it. By simply learning about foreclosure investing, you will be able to join this industry in no time at all.

The first thing that you need to know about foreclosure investing is who you will be buying the house from. Foreclosed homes are properties that have been taken over by the bank because the past owner failed to pay his or her mortgage. When this happens, the bank then needs to sell the property back to the public so that they can start to collect a profit again. The longer that the bank sits on a foreclosed home, the more money they are going to lose.

Being that banks are always in a hurry to sell properties back to the public, the buyer definitely has a huge advantage; this is what makes foreclosure investing so profitable for thousands of people ever year.

When you are looking to get into foreclosure investing you should realize that you will be able to find properties that are greatly discounted. It is not uncommon for a buyer to be able to find a property for up to 40% off of the market value cost. By purchasing properties at this price and then selling them back to the public, you can make a lot of money.

Another reason that foreclosure investing is so popular is because there are a lot of these properties to go around. In almost every city in the United States there are foreclosure properties available for purchase. The only thing that you have to do when getting into foreclosure investing is find the homes that you want, and decide how much you are willing to pay for them. This can be done by simply scouring your newspaper, or joining a service that will supply you with homes in your area.

Overall, foreclosure investing is a huge industry at the present time. There are people all over the country that have turned their love of foreclosure investing into a full time job. If you are interested in getting involved with the real estate industry, there is no better way to do it than by investing in foreclosed properties.



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