Whether you are new to real estate investing or are already an experienced real estate investor, investing in foreclosures will always be a lucrative source of making money in real estate.
There are 5 primary reasons this is so today and will remain so in the future no matter the vagaries of your local or more expansive real estate market. All these reasons are interconnected and woven into the tapestry of why you must always consider investing in foreclosures. That is precisely why those of us who are successful in their business focus on foreclosures.
THERE WILL ALWAYS BE MOTIVATED SELLERS
Of all the reasons an owner may need to sell his or her real estate, foreclosures will always top the list for the twin prime motivators of time and money, both dear to any owner to be sure. There are always deadlines and related consequences to overcome affecting credit, peace of mind, and the very ownership of a home place, most often the greatest and most singular investment of all.
DEADLINES
With foreclosures, there are always deadlines for owners and other interested parties who must act in a timely manner or face the consequences of not doing so. Beyond that realization, a foreclosure auction date is always a prime motivating factor for other interested parties, especially investors and shrewd end buyers. The end of the foreclosure process for that owner/seller enables a savvy investor to jump in and make his or her profit more quickly.
AVAILABILITY
It is and will always be an undeniable fact that there will be foreclosures no matter what. The real estate market may affect the amount of foreclosures in a given time frame, but foreclosures are always a given. Never limited on availability, the sky is the limit on how much money you can make.
MOTIVATED LENDERS
Lending sources are always motivated whether a bank, a hard money lender, a private money lender, or any other money source. Almost always, these lenders prefer the return of their money not acquiring the title to the collateral real estate, the latter often at substantially more cost if the lender is not in first position. When facing the prospect of losing some to all of their investment, lenders are very motivated to cut a deal. Getting something is better than nothing.
CREATIVE FINANCING
Existing at the forefront of many foreclosures for seasoned investors is the possibility of using other people’s money (OPM) and no money down deals with motivated sellers. Due to the motivation of interested parties, an investor can take over the bank financing or have that motivated seller carryback a portion of the property equity. By astute positioning, an investor can control a property with a purchase contract using no money down and quickly reselling it for a handsome profit.
CONCLUSION
No matter how strong the economy gets, there will always be jobs lost, divorce, bankruptcy, illness, and death. There will always be those living way above their means. So do not worry. There will always be foreclosures and lots of money to be made.
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