Your Foreclosure Goals
Your financing options for buying homes and foreclosure properties
Elements of your goal:
- Quality home
- Substantially less than market price
- Good home neighborhood for appreciation in value
- Enough room to improve the quality
- Good financing terms (low interest rate, low down payment, low closing costs)
- Lower down payment for higher return on your investment
Low interest rates are important. Just look at any home mortgage loan agreement to see the amount of money a borrower pays over the life of loan. It is 2-3 times the price of the property. Therefore, one percentage point in your interest rate has a significant impact in reducing your debt.
Foreclosure investing is an excellent inflation-hedging asset
Interest rates reached their historical low in 2002 and stay the same as of the beginning of 2004 and early 2006. Lenders love to finance real estate. Since lenders have a valuable asset as collateral, they will be happy to finance your home. That’s why you can get the longest repayment terms and lowest interest rates on mortgage loans.
Some lenders provide 125 percent financing. This covers all your costs and expenses at settlement. Do you need more money? Get additional funds (line of equity) through a second mortgage and use online mortgage lenders for quick approval.
What do you need to succeed in foreclosure home investing?
- Willingness to learn the basics of the real estate business.
- Effort in improving the property.
Yes, you can do it!
- Understanding it is easy: You don’t need to have a degree to understand this easy-to-follow, step-by-step manual.
- You can learn foreclosure inspection and foreclosure repair: You don’t need to be a handyman to add value to your property. You will find lots of resources to learn how to fix things.
Everybody starts somewhere. If you have already fixed things at home, you eliminate the learning curve.
- You pay no commission when you buy a foreclosure property.
- You can sell it without a real estate agent (For Sale By Owner – FSBO), if you wish to.
Keys to Success: You can make your fixer-upper foreclosure business very profitable if you:
- Minimize cash payments on your side.
- Target a way to create positive cash flow at the start or within two years.
- Do it yourself as much as possible. Delegate tasks to others by considering time and money.
Ask your spouse, kids, relatives and friends to join you. Let them share the experience and enjoy the profits. Let them feel the team spirit … the spirit of success.
If you cannot do it by yourself, let them join you. You not only get help, but also bright ideas that may add more value to your foreclosure property.
This comprehensive web site is designed to give you all that you need to succeed:
- Buy quality fixer-upper and foreclosure properties at the lowest cost;
- Improve and add value to them;
- Sell them for profit; or
- Lease them for continual income, appreciation, and tax advantages;
- Live in them while you fix them, and more.