Part 1 of Tim’s Pre-Foreclosure Series
My office can barely function with all the investing questions we’re getting these days. It seems like every media outlet is bemoaning the current real estate market and none can seem to say a single positive thing!
Unfortunately, there is a lot of trouble in the economy right now and people are having to foreclose on their homes. I’ve already told you that the best time to invest in a property is when it’s in the pre-foreclosure stage — you will probably get a great deal, and you’ll be helping a family avoid the consequences of a foreclosure. In this troubled time, we need to do all we can to help others in need.
To address these issues, I wanted to start a series about what to expect in the pre-foreclosure process. Keep an eye open for the following parts of the series in the upcoming weeks.
Here’s Part 1 of my Pre-Foreclosure Series:
What Are the Benefits of Working in the Pre-Foreclosure Market?
There’s no doubt about it — the pre-foreclosure market offers many advantages to the careful investor.
First of all, you can buy properties at a deep discount. Discounts can range from 20% to over 40% of market value. This means you can buy a property, turn around and sell it at under-market value, and still make a great profit.
Second, you can structure deals that will cost you very little money or, in some cases, no money at all. This doesn’t mean you’ll be able to operate in the market without cash reserves. That’s just plain foolish. However, it does mean you can get creative and legally use other people’s money to finance your deals.
Third, you can buy properties quickly without all the rigmarole that goes on with conventional transactions. This not only means that you don’t get buried in paperwork, but you’re also able to turn relatively quick profits while moving on to the next deal.
Stayed tuned next week for the fourth, fifth, and sixth benefits of working in the pre-foreclosure market.
To Fun, Fortune, and Freedom!