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If you have gotten this
far, it probably means that you have the know-how to make money in
the foreclosure business. This section will deal with the specifics
on following pre-foreclosure and foreclosure properties.
First and foremost for pre-foreclosures, it is critical to know what
homes are selling, for how much they will sell and when they will
sell by. This information is usually easily and cheaply found in
newspapers and local ad magazines. You can also find this
information in county records Be proactive and find out everything
about your target homes! Don’t let them slip through your fingers to
someone else.
Once you have the information, then you have to get to buying the
property. This is done easily enough by contacting the current
owners and arranging a meeting or conversation to discuss terms.
Also feel free to begin to plan for other costs and arrangements for
the process if things go well. Just make sure that someway, somehow,
you end up buying the house that you want before anyone else.
For foreclosures, the process is slightly different. To begin with
all the properties are owned by banks who don’t gain personal
benefits from the property and for the most part are looking to
regain their loss from the loan. Banks, therefore, are often willing
to sell these homes at a discounted price in bulk to companies
looking to resell them and put “sweat work” into them. They also
don’t mind cutting their losses and selling them for as much as they
can. The houses that sell for the cheapest from banks are ones that
are very rundown, in bad markets or ones that need a lot of work.
Act fast and get your offer into auctions or whatever. The sooner
you let the banks know you are willing to buy a property, the
better! As long as you are realistic about the market value of the
house, you will probably get a positive response.
A final recommendation is to look for properties that no one has
bought for a long time. If you see potential in these homes, inquire
about them and see if you can get them at a discounted rate. Banks
usually will work with you more on these homes because they are
unable to sell them for their asking rate. |
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