Across North America and the world, the market correction
has caused the biggest increase in Foreclosures in Real
Estate History, but is there any way for us, as Investors,
to profit?
The rate of Homeowners who are more than 90 days behind on
their payments has increased 164% from last year, and
experts say the worst is yet to come.
But can we as Investors save these homes and their owners
from Foreclosure and still be profitable? The short
answer... yes, we can.
While most Investors are still reeling from the blow the
market has dealt them, smart Insiders are cleaning up.
Insiders know that, especially in this current market,
banks DO NOT WANT Real Estate. They want money. And that
simple fact means banks will bend over backward to work
with anyone smart enough to know their simple formulas.
There are three Options to consider when buying
Foreclosures, and these factors will determine the exit
strategy. (And if you understand the House Business, you
know that the Exit Strategy determines the Buying Strategy,
right!!??)
Technique 1: Repayment Schedule or Loan Modification
In this simple strategy, if you come across a property that
has some equity, but may also have a TON of back payments
and attorney's fees, all you need to ask yourself is, "Will
it cashflow?"
If it will, simply contact the bank and ask for a Loan
Modification Agreement- which simply means that the bank
will add the missed payments to the back of the loan, and
structure a new debt, often without even increasing the
payments.
They add the additional monies owed as additional payments
to be made, lengthening the time of the original mortgage
by several months.
Technique 2: Short Sales
A Short Sale is simply contacting the bank and offering
less than what they are owed as full payoff of the
underlying financing. This technique works on properties in
foreclosure.
To decide if a property is a candidate for a Short Sale,
you need only ask yourself, "Do they owe more than it will
sell for quickly?" If so, a Short Sale is your only choice,
because there's no point in making up the payments if they
owe too much to make a profit anyway!
Technique 3: Just Sell The Darned Thing!
Since most Homeowners and Investors are struggling o sell,
it's an easy process to pick up houses at good discounts.
But can you make a profit?
See, an Outsider, who doesn't know what we do, has too many
costs, fees, risks, and BS to make any money off of a
so-called "Marginal" or "skinny" deal. But we have much
more to offer the Seller than they do!
Here's a Perfect Example:
Beautiful Laura, my wife, spoke with a Motivated seller
about a home just 2 miles from where we live, in a High-End
gated neighborhood.
The Property was in excellent condition, and worth
$575,000. The seller owed $490,000 on this 5 Bedroom 4
Bathroom house, was three months behind, and wanted $20,000
out of the sale to pay their back payments and closing
costs.
So what can we do? How could we possibly make a Profit?
Well, it's straightforward- Just Sell The Darned Thing!
Laura simply Optioned the property for the $510,000 price,
and Marketed it through a 7-Day Sale. At a sales price to
the End Buyer of $560,000, it's a fat $50,000 Profit.
See, most people get so caught up in fees, costs, carrying
costs, etc., that they can't move fast enough to capitalize
on a deal. This wasn't even a great deal, but $50,000 is a
nice paycheck!
In this Property, We paid the Seller 89% of Full Market
Value and still made $50,000! And by the way, the Seller
pays the customary Seller closing costs, and the Buyer pays
the customary Buyers' closing costs, so we pay... NONE!
Most people are so concerned about stupid little stuff that
they skip right over this 3rd technique, and walk away from
a HUGE source of CASH PROFITS!!
The current BOOM in Foreclosures is without a doubt THE
biggest opportunity to make a fortune in the history of
Real Estate, and smart Insiders are raking in profits by
the truckload in Markets where Outsiders are complaining
because they can't make any money!
----------------------------------------------------
Jason Loucks has mastered the art and science of retailing
properties through his "7 Day Sale" system. To get your
Free "Secrets of the 7 Day Sale" Audio, that explains how
you can sell houses in just 7 Days, just visit:
http://www.7daysaleguy.com
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