Oh, yes, you want to buy a foreclosure at
50% of Market Value, change the locks and
put a real estate sign in the front yard and
make a ton of money in 30 days. Oh yeah,
you don't want to put a penny of your money
into the deal either! Well, I'd like to do that
too, but I've never seen it happen!
The reality of foreclosure investing is far
different than what many people have heard
or read in books. I'll tell you what I'm aware
of in the foreclosure investment field. First,
everyone I know who is an active investor
works an awful lot more than people working
9-5 jobs. Second, serious players have a
significant amount of money of their own.
Third, houses that have been foreclosed on
almost always need a lot of work to bring
them to Market Value. Fourth, finding a solid
property to purchase isn't a matter of picking
what you want, it's a matter of finding
something that works financially, finding out
all you can about it, then beating out all the
other investors who are interested in it. So, is
it possible to make money in this business?
Sure, the key is to do your homework.
First, know the Market Value of a property
you are interested in. Experienced investors
will use local MLS comps and experience to
come to that value. If you are not fully aware
of what a property will sell for on the open
market, you cannot do anything with a
property. All decisions regarding a property
are based on the price it will receive. Know
The Value!!
Second, know the law. If you know of a
property where money can be made, you do
not want to run into legal issues because
you structured a deal that is illegal. Know
The Law!!
Third, find money. It certainly helps if you've
got a good amount to back your purchases,
but if you don't, it is not impossible to do
deals. There are many investor loans out
there and you need to know where to get
them. Find Money!!
Fourth, do your research. Federal tax liens,
partial interests, leased land, property
information wrong, and unpaid property
taxes are all things that have hurt investors.
The things that will make a deal head south
are the things that are not obvious. Be
Knowledgeable!!
About The Author
Maryann Ullrich is a contributing writer
to Plano Online and a local Realtor
with Century 21 Posey Properties in
Plano, Texas. For
more information, Maryann may be reached
at
maryann.ullrich@verizon.net.
