Foreclosures

When a person can't pay the mortgage, banks move in quickly to seize the property to ensure that they get their money back. This is called foreclosure. But banks aren't in the real estate business -- they don't normally want to hold onto a property for any length of time, they just want their money back as quickly as possible. By buying a foreclosed property from a bank or other lender, you can end up getting a property at a price way below the market value of the property. You could put in a bid for a foreclosed home, secure ownership and sell it almost immediately to an investor. To ensure a quick sale, you'll have to sell the property at a below market value price, but you should make thousands of dollars on every deal.

Pre-foreclosures

You can probably guess what this entails. A homeowner has fallen behind in making his mortgage payments, and has been notified by his lender that they intend to seize his property. You arrive on the scene as a white knight, offering to buy his property for pennies (or dimes) on the dollar. You then notify his lender that you have purchased the property and that you'll be bringing the mortgage up to date. The lender will end the foreclosure proceedings, and you will find a real estate investor willing to buy the house quickly. The profit potential is enormous!

Fixer-uppers
 
Some houses look run down, and are in need of repair. Some owners either can't be bothered to keep their houses looking nice, or can't afford to hire someone to do the upkeep. While some fixer-upper houses just need a coat of paint and new windows, others may have serious structural problems. Beware! Before getting into the fixer-upper business, learn all about making simple home repairs and how to inspect houses for defects and potential problems. Don't buy someone else's problems. With experience, you'll be able to see just how much you would need to spend in repairs, and how much of a discount the seller ought to be giving you to buy his property as is. Learn before you attempt this. It may end up costing you thousands of dollars if you don't.

No money down

No money down schemes usually involve looking for motivated sellers, making a zero down offer to buy the property. In some cases, you can end up getting a mortgage larger than the price you are paying. This is not common though. When you do a no money down, you can either flip the property by finding a buyer before you take possession of the property, or buy and hold and rent it out.

We get all the new bank and HUD listings.  For a FREE list of bank owned (REO), HUD or, VA properties please e-mail me at dino.paglia@realliving.com or you may call me, Dino Paglia, at 614-818-7660.