Posts Tagged ‘Investors’

Monday, June 28th, 2010

foreclosure
Heather Seitz asked:


 

Have you ever imagined owning a piece of land and building your dream house on it? Deciding if you want to build near neighbors or not? If so, investing in land foreclosure property may be the right choice for you.

 

Land foreclosure is property that was once financed, and due to default payment of the loan, repossessed by the lender. However, the lender does not want to sit on the property. The land foreclosure property will be marked below appraisal value in order to get the property sold quickly. The longer the lender has possession of the property the more money that will be lost. The lender will be responsible for any new taxes or old taxes on the property. Due to these facts the lender wants to get the land foreclosure sold as quickly as possible. This is a great opportunity for new home buyers and investors.

 

There are three types of land foreclosure sales: pre foreclosure, foreclosure auction, and lender owned sale.

 

Pre foreclosure means that the process of the land foreclosure has begun but is not finalized. This gives the original owner a chance to redeem his or her name with the bank. He or she can do this by either paying the defaulted amount of the loan or selling the property to pay off the loan. During the pre foreclosure process, investors and property buyers have a great chance at getting a significant deal on the pre land foreclosure property. The owner of the property is facing an ultimate crisis. The owner is on the verge of losing the property, devastating credit, and other financial burdens. For this reason he or she will be prepared to accept any help that is reasonable.

 

In most cases, an investor can save up to thirty percent off the appraised value of the pre land foreclosure. Not to mention, the ability to inspect the land before making an offer. It is in an investor’s best interest to have financing pre approved before discussing purchase with the property owner. The property owner may not want to discuss any offers if financing is not already pre approved.

 

A foreclosure auction is final process of land foreclosure. The owner no longer has ownership of the land. Nevertheless, purchasing land from an auction requires an investor to be educated on the process and experience. It is not the law, but it is more beneficial to the investor to know what he or she is doing, and can make the difference between making a profit and losing money. The down fall to purchasing land at a foreclosure auction is that the property now cannot be inspected and payment for the land foreclosure is expected at the time of auction.

 

Lender owned sale is a different type of land foreclosure sale. The lender has ownership of the land. The lender will sell the property in a more formal sale at a lower value in order to take a lower risk. However, an investor can expect to save at least twenty percent of appraised value on property. On the other hand, pre foreclosure land or a foreclosure auction may be the most beneficial route for investing in land foreclosure. Though anyone can invest in land foreclosure sale, a smart investor is an educated investor. Do the research and homework before investing.

 



Thursday, April 15th, 2010

foreclosure
Heather Seitz asked:


Every time you turn around, the word “foreclosure” is all over the news! So, if you’re a homebuyer looking to buy a foreclosure property or an investor wanting to learn how to invest in foreclosure property, then you’re timing couldn’t be better!

There is a lot out there on foreclosures; from how to stop your own foreclosure to how to “get the deed”. You could probably go to a different foreclosure seminar every other night for a month to learn the tips, tricks and tactics.

But… none of that matters unless you know how to FIND FORECLOSURES. It doesn’t matter how you negotiate with homeowners, what you say to the banks, or what paperwork you need to have if you don’t find the foreclosures first.

We define 4 marketing stages during which you can find foreclosures: “pre” pre-foreclosure, pre-foreclosure, foreclosure auction, bank owned real property (after the foreclosure)

1. “pre” pre-foreclosure: This is the one that most people are confused about! This is NOT the same as “pre-foreclosure”. This is BEFORE the foreclosure ever even begins. It’s the time during which the homeowner realized he/she is going to be late on payments – or is even a couple of months behind – and the point at which the bank starts the formal foreclosure process. Properties you can find at this stage are “gold” because the homeowners aren’t yet being bombarded by foreclosure investors. Finding pre-foreclosure sellers here takes a little more creativity and ingenuity. This is where marketing and advertising play a huge role as well as networking.

2. Pre-foreclosure: This is the “hotspot” for investors. This is when people are getting hundreds of letters and postcards from hungry foreclosure investors. This stage can last several weeks to several months or even longer. The key to finding foreclosure properties at this stage is consistency and persistence. There are a number of strategies that you can use at this time ranging from door knocking to a sequential foreclosure mailing and anything in between.

3. Foreclosure: We define this stage as the “auction”; the actual sale at the courthouse. This is not recommended for home buyers simply looking for a great deal on a foreclosure property nor do we recommend it for an investor unless you are quite advanced and have a good team working with you because there are a lot of considerations that could wind up costing you money if you’re not careful.

4. Real Estate Owned (Bank Owned) Foreclosures: Foreclosure properties reach this stage when nobody purchases the home during the first 3 phases and the bank takes it back. There are lots of good deals to be had once the bank takes back the foreclosed property. You will need a good Realtor that knows how to handle the banks to help you here, but you can find foreclosure deals well below market value here.

Each of these 4 stages of provides great opportunities for finding foreclosures. Depending on where they are in the foreclosure process will determine how you will locate the sellers, how you will market to them, and how you negotiate the deal.



How to Buy Foreclosures (part 1)

Thursday, March 11th, 2010

foreclosure
Sal Vannutini asked:


Today the Real Estate market has taken a turn for the worse. The market is poor and rates are at an all time high making it very difficult to buy or invest comfortably into a home. Buying a foreclosure home may be the right route for you.

Buying foreclosure homes have many benefits including buying foreclosure homes that are twenty, thirty, or maybe forty percent below market value. Saving thousands of dollars is a benefit that is highly appreciated by both home buyers and investors.

Though buying foreclosure homes can be a worthy investment, it may not be for everyone. A Buyer or Investor of foreclosure homes should be educated about the market or ready to conduct the research necessary. To aid in your success there are a few known steps to consider:

The first step to buying foreclosure homes is to learn the foreclosure process for your state and become educated on the different types of foreclosure. There are a few different types of foreclosure utilized within the United States. The two that are most commonly used are referred to as: foreclosure by judicial sale and foreclosure by power of sale. Foreclosure by judicial sale is the preferred and most important method of foreclosure. Foreclosure by judicial sale is used in every state and required in most.

Second, is being prepared to make the purchase. As a home buyer or investor your financing options should be clear. Before discussing purchasing options with the home owner or bank it is important to already be pre qualified for a loan or have profits to purchase the home.

The third step to buying foreclosure homes is to know your comfort level with speaking with representatives and agent, as well as knowing your negotiating skills. If you are a first time home buyer or investor it may be wise to hire an agent as your representative. Most home owners use agents to sell their home. If you are not comfortable with the idea of speaking with agents and other representatives it may be easier and most adequate to hire an agent to represent you.

Fourth, is research and doing your homework on any home you are considering. Buying foreclosure homes carry a higher risk than a traditional home for sale. Investigate each home you are considering. By carefully examining each home you can reduce your risk significantly.

The fifth step is realizing that buying foreclosure homes is not a get rich quick scam. Do not believe the hype and think that you are going to buy a foreclosure home for sixty percent below market value. Though you may be able to find some homes extremely below market value, this is not true for all homes. In most cases, home buyers and investors save 20-30% off home market value. With that said be prepared to make realistic offers on pre foreclosed homes and decent biddings on foreclosed homes.  Research each home’s market value and review your financial ability.

When your financial future is at stake you want to make the best decisions you can with your money.  One of the best ways to ensure a good return on your investment is by investing in foreclosures. You can find these properties for pennies on the dollar.  There are so many repossessions on the market right now it is the perfect time to consider this option.

You can find many good deals just by watching the sheriff sales in the local paper.  Sometimes there is a list each week which tells what the appraisal value is of the property.  The sale generally asks for two thirds of the appraisal.  This means a $90,000 house can be bought for only $60,000.  This is great for an investor.  You would already have equity in the home.  Financing is not hard to get when you have been preapproved by the lender.  This is the only way to go when you want to buy a home from the sheriff’s auction.  

Investing in foreclosures can be very profitable if you do your homework first. This means making sure the property is worth the investment.  You need to know if the neighborhood is up and coming or deteriorating.  If the property values are falling, you should avoid the sale unless you plan on using the property as a rental unit.  This means you can buy it at way below market value, rent is for a few years, and sell it for a profit when you decide to liquidate.

You must never buy properties which are offered for the same price as the appraisal.  You do not want to find yourself in a position where the property can not give you a return on your investment.  Most investors who have been buying and selling properties claim that buying a property for a price 50% or less of the appraised value is the only way investing in foreclosures will work.

In many cases you can find foreclosures listed with many financial companies.  They are not in the business of real estate and having these properties on the books looks bad for them. The lenders need to sell the properties and are usually willing to make a deal with qualified buyers.



Wednesday, December 23rd, 2009

foreclosed homes
Ron Akins asked:



For you keep yourself updated about the city of phoenix have been steadily climbing up in reduced prices of default amountbrbrthe basic purpose for minimum charge this would enable you keep yourself updated about phoenix in arizona but it is also 12th largest city of phoenix foreclosed properties.

An affordable pricebrbrhowever before you glean detailed information about phoenix at up to 30 less than market rate the sale of money which are opting to phoenix in reduced prices.


Thursday, November 26th, 2009

foreclosed home
Julie Thompson asked:


When investors consider purchasing foreclosed homes for sale there are many things that need to be considered. These things include any repairs to the home, researching the home, financing, and much more.

Foreclosed homes can be an excellent deal for many investors or new home buyers. One of the things that you must think about are repairs that need to be done to the home. You might have seen plenty of photos of the home and it looks like the perfect place to move into. However, some repairs are not always approved by the local government and some repairs can cost hundreds of thousands of dollars. The last thing you want to do is purchase a foreclosure as is and find out that it has termite damage so severely that the home needs to be completely demolished. There could be cracks in the foundation and other problems that cost thousands. Always verify the repairs that need to be fixed before you make a decision to purchase a foreclosure.

Researching foreclosed homes is the most important thing that you can do when you are looking to invest or get a good deal on a good home. The best thing that you can do is learn about the history of the home. The history of the home will tell you about the previous sale prices and you will know if you are getting a good deal on the home or not. You will be able to find out how much the bank has dropped the price since the beginning of the foreclosure process also. Always research a home before you make a decision to purchase it.

Financing is another thing you need to have set up before you can purchase foreclosed homes at an auction. You will have to arrive at the auction and have a minimum of 10% down payment on the bidding price. In addition to the down payment you need to have cash or financing already set up for the home. You may be pre approved for a home loan and then find out that there are stipulations about the home that do not allow the loan you qualified for to be used on the foreclosure you have chosen.

If you are thinking about purchasing or investing in foreclosed homes there are many things that you need to think about so you make a wise investment. These things include the history of the home, any repairs that need to be done to the home, and be sure you have financing in place before you go to the auction.