A smart real estate investor will know that using leveage and following a system can net terrific profits in real estate. Particularly with foreclosure properties. Foreclosures are a great way to build a fortune. Now more than ever, because real estate foreclosure rates are the highest we've seen in 46 years...
Heres a basic strategy investors with foreclosures:
A foreclosure home is up for sale. It's worth $350,000 according to comparable real estate appraisals, but the bank's asking price is $300,000.
The savvy investor will have a contractor or home inspector on their power team check out the foreclosure property in question. In this case, they discover it needs $20,000 of work.Interestingly enough, many real estate homebuyers will pass right over the foreclosed property. Because unlike an investor, they "think" it's ugly.
This real estate offers a handsome opportunity for an opportunistic real estate investor. Savvy investors will also use the Multi-Offer Strategy Technique in a Foreclosure
This technique uses the principle of offering choice to the eager seller the bank - after it has been on the market for 60 days. Here, the investor submits three offers at a variety of prices ranging from $210,000 to $225,000. They do so by submitting an offer in their personal name, another under their partner's name, and the other under a company name. These offers are presented by the Realtor to the bank's loss mitigation department whose sole job is to sell off the banks non-performing assets as quickly as possible. Even if that means the bank registers a loss on the loan of the property by selling to the investor.
Since they are buying through a bank's loss mitigation department, their offer of $225,000 is accepted - even though it is well under the asking price. This strategy can work great in a foreclosure-heavy market like Detroit and Denver, Colorado. Yes, foreclosure real estate in Denver and foreclosures throughout Colorado's real estate market are high. And banks in these markets truly are motivated sellers.
That's not all!
The savvy investor experienced in the real estate contract with a foreclosure will actually get the bank to give them a mortgage for the $225,000. Once the home loan goes through, the investor closes on the real estate, using a 10% down payment from a private lender. The investor then immediately sells the property to another fix and flip investor, and nets at least a $75,000 profit.
All this by selling it at the original asking price rather, than the actual real estate value of the property! Foreclosure real estate is skyrocketing. Being a real estate investor with this one niche can help you become a multi-millionaire. Discover more real estate investing tips, deal alerts, and receive valuable foreclosure resources and contracts by visiting http://www.MillionaireRiches.com today. It could literally change your life!
Cheers,
Brad & Mary Wozny
Helping 100,000 Women & Families Achieve Financial Freedom! |
