Record Foreclosure Rates Could Mean Cash in Your Pocket

Foreclosure bookWith the mortgage crisis in full swing, homes are going into foreclosure left and right all across the country. In 2005 there were 850,000 foreclosures, with the number of foreclosures increasing every quarter.

All these foreclosed properties offer you a great investment opportunity. You can scout and buy homes in foreclosure, then keep them as rental properties and collect monthly checks from tenants. Or you can purchase foreclosed properties and flip them, renovating and selling the homes for a profit. The time has never been better to use the real estate market to your advantage.I was recently sent a free copy of a great foreclosure book by a real estate pro by the name of Denise Evans. Her book, The Make Money on Foreclosures Answer Book: Practical Answers to More Than 125 Questions on Investing in Foreclosure Property is a straightforward, easy-to-follow guide to making money from foreclosures.

A quick and authoritative reference, the book explains all the elements of the foreclosure process and reveals everything you should keep in mind as you deal with foreclosed properties. The Make Money on Foreclosures Answer Book answers the most common questions about working with foreclosures, covering such topics as:

  • Finding properties to buy
  • Borrowing money to fund your purchase
  • Determining your costs
  • Buying pre-foreclosures and buying at auction
  • Buying through a bank or the government
  • Tax and legal issues
  • Bankruptcy
  • Dealing with the property’s former owner

Written by a real estate broker and attorney with over twenty years’ experience making money in the real estate market, The Make Money on Foreclosures Answer Book reveals insider tips and strategies that will help you buy foreclosure properties safely and sell them to earn a profit. Check it out on Amazon to buy or read more about it.

About the Author
Denise L. Evans received her law degree from the University of Alabama Law School. She is a licensed real estate broker, an active member of the Commercial Real Estate Club of Birmingham, and a research associate for the Alabama Real Estate Research and Education Center. She resides in Tuscaloosa, Alabama.

170 thoughts on “Record Foreclosure Rates Could Mean Cash in Your Pocket”

  1. Denise Evans has definitely established herself as a credible expert on foreclosures. Its interesting to look back at articles from last year; so much has changed! Most people don’t seem to realize that, yes, the general trend of the real estate market is still one in decline, it is possible to make a killing purchasing a foreclosure that is well under value. Happy home hunting, investors!

  2. I just sold a builder model home this past Friday that was $300k even with $5k closing costs paid.

    The notable thing? It was discounted $208k!!

    This is in North Atlanta (Cumming). Probably the largest % discount to date for me.

    Earlier in the year I gor a $1.3M home for $985k. Another builder spec in a high end n’hood.

    Rob

  3. I am Rhea S. I have visited your website and I would like to congratulate you on building such a valuable online resource. I am sure your visitors find your site as useful as I did.

    Have a great day.

    Thanks and regards,

    Rhea S.

  4. For less risky investments, have you heard about tax deed sales? Investors tend to get more bang for their buck with a higher returns on their investment. These government auction properties are often sold for just the back property taxes and a few other incidential fees. Our website http://www.taxdeedlists.com posts the sales lists and resources for sales in the 67 counties in Florida and for online and sealed bid auctions for other states around the country. We also give you free forms to sell or rent your property just for signing up.

  5. Oliver:

    Very cool, I love San Diego. I’m in Atlanta but been over there lots of times in the last 10 years.

    Was just in Portland last week and thought the weather can’t compete with SD, it’s got a certain charm to it.

    Send me the lsiting for the $84k condo, I want to see what this gets you.

    Also, I visited your twitter site. Lots of followers and followees. Do you find that this helps your business any?

    Thanks,

    Rob in Atlanta

  6. Very interesting statement from Anthony Berg….

    To Whom It May Concern:

    My opinion on this forum will be extremely biased as I am the Vendor Relations Manager for Absolute REO Solutions, Inc. and I profusely believe in our product and in the success of our partner agents along with us. I will try to answer some of the questions raised in this forum and also provide some additional information regarding what we do and what sets us apart from the competition.

    Our team is comprised of professionals that have been in the mortgage, real estate and wholesale lending industries for an average of 15 years each……etc etc.

    A company that obviously prides itself with regards to its clients and their needs.

  7. “My opinion on this forum will be extremely biased as I am the Vendor Relations Manager for Absolute REO Solutions, Inc. and I profusely believe in our product and in the success of our partner agents along with us. I will try to answer some of the questions raised in this forum and also provide some additional information regarding what we do and what sets us apart from the competition.”

    That’s cool, glad to have you here. Please contribute as you see fit.

    http://www.AtlantaRealEstateInfo.com

  8. Investing in forclosure is the best thing in real estate.Because we can get the houses in 50% of original value.As you said renting the houses is great thing.I will keep your idea.

  9. Killer strategies for finding buyers

    September 23rd, 2009

    Tips for selling real estate at lightning speed

    If you’re like me, you can never have too many investing strategies and you’re always in search of the next plan to catapult you to the next level. I just got done watching some awesome videos on how to create a marketing plan to sell properties and how to find buyers for your properties online.

    The videos were created by Than Merrill from A&E’s Flip this House.

    In the videos Than really goes through the marketing plan he uses to sell houses. I’ve included the videos below. You’ve got to watch them!

    You can also download the marketing plan for yourself!

    Creating a property marketing plan

    Click below to download a copy of the Marketing Mind Map Than uses in the video

    Mind Map version (requires software)
    PDF Version

    Using Postlets.com to bring in buyer leads – Part I

    Using Postlets.com to bring in buyer leads – Part II

    I liked Than’s videos so much that immediately after watching them I called his office to see if he would do a special webinar with us and teach us more! So stay tuned…

    ***

    UPDATE: The webinar is on! Than will be joining me this Thursday on a special webinar dedicated entirely to Than’s top secret marketing strategies for finding and selling killer deals. Make sure you’re there. Click here to learn more and register for free while there are spots left.

    ***

    Happy (and profitable) investing!

  10. But it also means that real estate investing is not quite doing well with that scenario, because people could no longer pay their obligation even if there are many foreclosed property who would be buying those property?

  11. If you have cash, another great strategy is buying and then providing owner financing. We have been buying properties all over the country and then providing financing for our buyers. With this exit strategy you can achieve passive monthly income without the problems of the three T’s of rental property (tenants, toilets & taxes). I have been investing in real estate for 14 years & owner financing properties for 7 years. http://www.SterlingIncome.com I like it a lot more than renting and the buyers obviously make out much better becuase they are building equity. This is best investment market I have seen in my lifetime – take advantage of it before its over!

    Matthew Donowho

  12. renttoownbiz.com is not a real realestate company they only want to sell you credit reporting services, Identity protection service etc.. they are guilty of false advertising

  13. Cash is king in this market – there is opportunity to capitalize even if things continue to decline nationwide. Buy low and sell a bit higher, buy for cash flow, etc. I agree with Matthew – raise cash from private investors and buy deals, this is my favorite approach http://www.ultimateprivatemoney.com. You can make money if you buy right and finance right. Be disciplined.

  14. It has been a different market these days. I would also rather buying forclosures to take the advantages of BMV prices to have bigger piece on capital appreciation for the future.

  15. I agree. You can make some incredible change to the foreclosed properties and be bought again. Though, repairs are very hard. Still, it can give you very big amount of money.

  16. This article goes over the scams that hit consumers last year. I also found some important guidelines that I was not aware of before: the IRS will never contact you by phone, mortgage counselors do not charge fees upfront and I need to keep an eye on my Internet bill next year.

  17. I have the ability to search my market for homes that are in a pending state of foreclosure and homes that are already bank owned that are not on the market. From my perspective some banks appear to be keeping their REO’s on the side line or they are ok with a six month plus lag in bringing them to market?

  18. I still believe in the real estate market here in Sarasota. It will come back — it’s just going to take some time. We should all be remembering the easy money we made in the past as prices escalated constantly and homes were easy to sell. What goes around, comes around.

  19. I agree with Connie above. We had it better than just good for a while now it’s time to “pay the piper”. Get over it and get out there and serve the customer – the business will follow in time.

  20. If you’re going to invest in today’s market or any market you must understand the conditions of the market you’re in. My team has found, in the current market, the best results in bank owned foreclosures. Not to say this is the only way, or the best way to make money with real estate investing today. These foreclosures usually need fix up and therefore we get them at very low prices from the bank because no one else wants them.

    I have not had good success in “short sales” or pre-foreclosures” due to what I refer to as “The Creature” or more commonly know as the Federal Reserve Bank. The reason I believe banks are not willing to short sale the notes very low before the foreclosure is because they are still leveraging those notes. Yes, banks are are enabled by their Federal Reserve Charter to count their promissory notes as cash in their accounts and go borrow more money based on how many promissory notes they keep on their accounts. When you think about this and understand it, it’s like a paradigm shift in your thinking and the light bulb comes on in your brain. If the banks make more money by borrowing against what we call a liability and they call an asset that explains a lot.

    So, when you dealing with banks and foreclosures you want to make your offer after they have leveraged the heck out of that promissory note and now want to dump what we call the asset. You can get help finding these through your local MLS or start calling on banks and develop a relationship with their REO department. When you find these and start negotiating with the banks is when you will start getting major discounts of 50%-80% off the retail values of these properties. Like any business it does require work but it can be very profitable.

    As an example, my team recently purchased an FHA foreclosure in the Denver, Colorado market for about 35% of it’s retail value because the previous investor had started the remodeling then ran out of cash. So, this was a 3 bedroom home with a brand new furnace, new wiring, new pluming and a completely redesigned interior. All we had to do was finish was was already started. We sold that property for $115,000 a few months after purchasing it in a slow market. Very nice profit on that one.

    However, if you want to succeed in this market you must have a good team, be very flexible and most importantly have “multiple exit strategies”. Know and learn these strategies such as fix and flip, fix and hold, wrap around deeds, equity sharing, lease with option to buy, etc. If you don’t know these terms then you either need to learn them or DON’T invest in real estate. Educate yourself first so you don’t wind up with a horror story of your own like the ones we have all heard of.

    Happy investing and have a blessed day!
    http://bit.ly/InvestingWithJerry

  21. in Corona today, there are many foreclosures. Regardless of where they are, foreclosures are a bad thing for the homeowner, but they’re a great thing for people like you who are looking to invest in Corona real estate at rock bottom prices. When you buy foreclosures in Corona , you are buying a piece of real estate at the best possible time and price. With just a little bit of effort, you can sell it at the best possible time and price, too. Between the two, you will make a lot of money. The key is finding the right foreclosures to buy.

    The best thing you should do now is visit http://coronabankownedhomes.org/ today and start making a good investment.

  22. We’re a new firm in the Monterey Bay Area specializing in distressed sales. There are lots of opportunities around here for that type of investment and we’re reaching out to network with anyone interested whether selling, buying, or investing, or just would like to share info.
    Blog: http://authenticre.blogspot.com

  23. the title of that book used to read ‘how to line your pockets with other peoples hearts and souls’ but fox news owns the rights to that phrase so she changed it last minute.

  24. I believe anyone in the real estate industry now needs to learn how to adapt to the weakened global economy. Due to contrary belief not everyone is losing money in fact many are benefiting from industry. I would recommend checking out the book.

  25. The real estate market has been one of the heated issues being debated in News discussions.
    Maybe for investors who have the available cash this is a good oppurtunity. For ordinary home owners who just want to refinance this is a nightmare.

  26. Very true, there are those experienced agents out there who will make money no matter what market conditions say. Scottsdale real estate buyers have actually benefited from this downturn. As one of the top cities to live, homes in the area were out of reach for buyers from 2004 to 2006. Now there is enough inventory to make even this prestigious city a buyers market.

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