Your Foreclosure Strategy

Strategize your foreclosure home buying and selling for more profits

Your role as a buyer of foreclosure homes: You are a problem solver:

You solve problems of the property;
You solve problems of the sellers; and
You solve problems of the lenders.

You reap the benefits of what you do in this exciting foreclosure business.

You are a distressed property specialist. Sellers are under pressure to sell: Find out sellers’ reasons for selling and decide on how you can negotiate foreclosure. Negotiate the price and other terms, and then focus on non-monetary benefits that you can offer to reduce the price further.

Bottom line in foreclosure business: Profit.

Instant profit when bought under market value. Try to buy 20-25 percent under the market value of a property that has similar features in the home neighborhood.
Add value to improve your profits: learn foreclosure repair and remodel it.
Materialize profit when selling it.
Lease it (income from rent, appreciation, and tax-savings).
Live in it while you fix it. Save rent money and fix it at your own pace.

Unique Business Opportunity: Make money all the time!

Earn income when the economy is in good shape and people are willing to pay higher prices.
Earn income when the economy is in recession. Some people cannot pay installments. There are plenty of foreclosure properties at below market prices.
Rent does not decrease. You can even earn income by leasing in a bad economy. Read more to avoid foreclosure mistakes made by many in planning your foreclosure strategy.

There are more foreclosures now than ever before!

Why do foreclosures happen?

People overextend themselves. They get 125 percent financing to buy their dream home.
They use their lines of credit and credit card limits to have what they dreamed of.
Changes in bankruptcy laws have simplified bankruptcy procedures. Now, some states made bankruptcy more difficult.

Flexibility in time and money

You don’t need to quit your job. The fixer-upper foreclosure business is a flexible moneymaking opportunity.

You can do it at your own pace, on the weekends or evenings. If you don’t do it for a week, no problem, just do it the next week.
Buy properties within your price range.
Fix them as your budget allows.
Flip them, or keep them for a continual source of revenue.

Trading your time to stay on the payroll is not the only way to get rich. Working for someone else cannot make you rich!

You have motivated sellers of foreclosures

Lenders (banks, private lenders) holding foreclosure houses are highly motivated to sell because:

They are not in the real estate business and want to get rid of foreclosure properties as soon as possible.
They sell these properties to reduce the amount of their non-performing loans.
They get cash to improve their liquidity ratios in order to meet federal and state requirements.

Foreclosure homes: Neglected properties

Some homeowners experience financial difficulties in paying their installments:

They do not have the funds, time, and/or desire to improve their homes. You (fixer-upper foreclosure investor) come to the rescue and convert an unattractive home into a beautiful home.
You clearly see your added value and profit from it.
Your neighbors appreciate what you do, so everybody benefits from your work.

Contingencies, contingencies, and contingencies

When you deal with banks and government agencies, your counterpart may not be the final authority. Your negotiation power weakens due to several layers. So, inserting your foreclosure contingencies is one of the most effective ways to get your message. More contingencies give you more leverage to reduce price or get credit for defects and repair, and many other non-price advantages.