Part 3 of Tim’s Pre-Foreclosure SeriesReading Time: 2 minutes
I hope you had a wonderful holiday and are getting ready to celebrate the new year! I think 2009 is going to be an incredibly successful year for everyone.
Last week, I discussed the remaining benefits of investing in the pre-foreclosure real estate market. In order to understand pre-foreclosure, you need to know about the disadvantages as well. Here they are, in Part 3 of my Pre-Foreclosure Series:
What Are the Disadvantages of Working in the Pre-Foreclosure Market?
Let’s face it — foreclosure is not an easy process for homeowners. That means you’re going to deal with people who may be angry, frustrated, and looking for someone to blame. In some cases, they can be very difficult to deal with and you have to be prepared for these situations. Working with homeowners in foreclosure situations calls for tact, patience, and empathy. In effect, you have to be a “people person.” The best attitude to take is that you are a problem-solver; that is, you’re there to help the property owner out of a bad situation in the best way possible. This attitude will help you maintain your sense of perspective and humor in all your dealings.
Another “disadvantage” is that you’ll have to do a considerable amount of courthouse research to make sure your deals are profitable. This is hard work, requiring extensive attention to detail to make sure the property isn’t loaded down with unexpected liens or other items that can entangle you in legal procedures. These situations can take a long period of time and end up reducing your profit, or even resulting in a loss. When dealing with pre-foreclosure properties, the devil is indeed in the details!
Finally, competition is tough in the pre-foreclosure market! After all, other buyers will be seeking the same profit opportunities that you’re looking for. This means you have to be up-to-date on local conditions and opportunities and stay on top of the market at all times.
If you missed any of the benefits of the pre-foreclosure market I discussed in Parts 1 or 2, you can scroll down to read about them.
Stay tuned for tips on how to become a successful player in the pre-foreclosure market in Part 4 of my Pre-Foreclosure Series next week.
To Fun, Fortune, and Freedom!