Foreclosure Investments: Money Mines or Pits?
- By James Richard Nelson
- Published March 16th, 2010
- Finances
- Unrated
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Real estate foreclosures include many problems from several perspectives to be sure. However, as is frequently the case, where there are obstacles there also are opportunities, and with respect to real estate foreclosures, those opportunities are numerous indeed! But, are the available foreclosure profits to be gained from such opportunities gold mines or mine fields? Well, the answer to that question is clearly, "Both!"
There are many ways that one can seek to profit from home foreclosures, but they really stem from the three main time periods associated with any given foreclosure:
1) the time period before foreclosure,
2) the time period from beginning to end of the actual foreclosure process, and
3) the time period that follows the foreclosure.
Each period contains ample chances for achieving great monetary returns, and catastrophic disasters.
During the pre-foreclosure period, viable home owners should have some equity left in their properties to permit a short sale. On the benefit side of these opportunities are two complimentary components. First, the investor who can inventively and diligently work his or her way through the process during this period can earn major rewards. Second, having bought the property at a very favorable price and sold it successfully for a good profit, the property seller can be given some extra cash from the sale making it a win-win deal.
On the liability side, transactions during this period can take longer than normal property purchases because loaner’s approval is needed before the sale process can even start. Moreover, working with homeowners who are under all the financial stress and emotional strain associated with
such circumstances is very difficult and beyond the capacities of many investors.
During the foreclosure process proper, investors can still earn a very significant return on their investment and can do so without the direct emotional penalties yielded while interacting with disturbed sellers.
However, while the house will in all likelihood have been taken back by the bank and be up for auction during this period, new pitfalls must be resolved to deal effectively and sanely with the bidding frenzy common during auctions to ensure that one asserts self restraint and doesn’t lose profitability.
Last, those houses that don’t sell at auctions return to the bank and may then be sold as REO homes in MLS listings and elsewhere. Here again, top bargains can be discovered and profits earned, particularly among banks with an excess of foreclosured houses on their books. Anytime companies have non producing assets on their books, lenders included, they’re going to be significantly encouraged to get out from under them.
The key concern of investing successfully in foreclosures during this period is financing. Banks are reticent to lend to prospective buyers of REO properties. And, with many lenders who are saturated, if not drowning in losses of this type, getting more than a 20% discount is very unlikely.
So, is investing successfully in property foreclosures more mine field than money mine, more dream than reality? Absolutely not! But it is requisite that one learn what to do, when and where to do it, with whom to do it and not to do it, as well as how to do it. And knowing why to do something is helpful, too! My advise? Learn all this and more from some trusted source such as “Foreclosure Profit Finder” available from http://www.JuJamVideoReview.com/foreclosureprofitfinder.html! Check it out for yourself!
There are many ways that one can seek to profit from home foreclosures, but they really stem from the three main time periods associated with any given foreclosure:
1) the time period before foreclosure,
2) the time period from beginning to end of the actual foreclosure process, and
3) the time period that follows the foreclosure.
Each period contains ample chances for achieving great monetary returns, and catastrophic disasters.
During the pre-foreclosure period, viable home owners should have some equity left in their properties to permit a short sale. On the benefit side of these opportunities are two complimentary components. First, the investor who can inventively and diligently work his or her way through the process during this period can earn major rewards. Second, having bought the property at a very favorable price and sold it successfully for a good profit, the property seller can be given some extra cash from the sale making it a win-win deal.
On the liability side, transactions during this period can take longer than normal property purchases because loaner’s approval is needed before the sale process can even start. Moreover, working with homeowners who are under all the financial stress and emotional strain associated with
During the foreclosure process proper, investors can still earn a very significant return on their investment and can do so without the direct emotional penalties yielded while interacting with disturbed sellers.
However, while the house will in all likelihood have been taken back by the bank and be up for auction during this period, new pitfalls must be resolved to deal effectively and sanely with the bidding frenzy common during auctions to ensure that one asserts self restraint and doesn’t lose profitability.
Last, those houses that don’t sell at auctions return to the bank and may then be sold as REO homes in MLS listings and elsewhere. Here again, top bargains can be discovered and profits earned, particularly among banks with an excess of foreclosured houses on their books. Anytime companies have non producing assets on their books, lenders included, they’re going to be significantly encouraged to get out from under them.
The key concern of investing successfully in foreclosures during this period is financing. Banks are reticent to lend to prospective buyers of REO properties. And, with many lenders who are saturated, if not drowning in losses of this type, getting more than a 20% discount is very unlikely.
So, is investing successfully in property foreclosures more mine field than money mine, more dream than reality? Absolutely not! But it is requisite that one learn what to do, when and where to do it, with whom to do it and not to do it, as well as how to do it. And knowing why to do something is helpful, too! My advise? Learn all this and more from some trusted source such as “Foreclosure Profit Finder” available from http://www.JuJamVideoReview.com/foreclosureprofitfinder.html! Check it out for yourself!
Written by James Richard Nelson
James Nelson has accumulated almost 40 years of successful business experience, and much of it has been based on the maxim, "Do what you do do well, then find others who can do the rest best!" He is currently President of JuJam Enterprises Incorporated where they focus on “Helping People Help Themselves.” You can discover more about finding foreclosure profits on their website, http://www.JuJamVideoReview.com/foreclosureprofitfinder.html. Previously, together with his wife, Judy, he owned and operated Lakewood Lodge, a family recreation resort in northern Minnesota. Prior to that he completed 23 years in various sales and marketing management positions at AT&T. He earned a Bachelor of Science (Business) degree from the University of Minnesota with Distinction in 1975.
