OfflineAs real estate entrepreneurs, our focus is to buy properties that create profits. If we cannot make a profit, we cannot survive as entrepreneurs. That means we have to learn how to find great deals. Even better, we must find them constantly. Foreclosures can consistently offer great deals in a buyer’s market, as long as you know how to find them.
Invest
It’s important to understand that banks are not in the business of real estate. They are in the lending business. They lend money to earn income off of the interest – somewhat like a landlord does with tenants. Banks will lend with collateral. They want to make sure that if they lend money, and for some reason, the borrower does not pay as agreed on the loan, the bank can recuperate their money through the collateral asset.
When a bank forecloses on a property, their objective is to get rid of the asset ASAP because they want to avoid as many carrying costs as possible. More importantly, they have no business model for either renting the asset to sustain costs or rehabbing the asset for profits.
And that’s where the real estate entrepreneurs come in. There is a proven business model available that can be automated to make any person willing to do the work a considerable income. But be aware: this is not about looking for the picture perfect homes that have plenty of buyers lined up. Too many amateurs jump in at that point and get average deals. To find the amazing deals, it is important to be ready to look past appearances to what really matters. And what really matters is the numbers.
Do you think a borrower that is being forced out of their home will leave the property in clean, ready for resale condition? If you don’t think so, you’re right. Do you think a bank has the money to carry, renovate, clean and bring the property in a marketable condition? Absolutely not. And this all adds up perfectly to equal profit for the motivated real estate investor.
Investing in foreclosures can be a daunting task if you don’t know what you’re doing. Putting into place a proven, step-by-step system that can work systematically every single time from the moment we find a deal to the time we sell 30 years down the road is crucial. Fortunately, there is a program tailored specifically to Canadian Investors.
You may be unsure about jumping into this new market. Perhaps you’re worried that it will all go wrong or that you can’t do it. Success is a journey that we all must be willing to take if we are intent on getting results. Every journey always begins with a first step.
dnicholson
This is especially true if the buyer wants to flip the house. There is a lot of money to be made in buying structurally sound properties that are in need of refinishing, updating or remodeling. Take a 1980s dated kitchen and bring it up to today's standards can create an in-demand house.
the penultimate paragraph states that there is a program tailored to Canadian investors; I'm wondering what that is all about?
I do like buying foreclosed properties because there is plenty of equity when you purchase; however, most times, the properties will need extensive renovations, so one must take that into consideration when calculating costs...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
I just typed"Why Its a God idea to invest in Foreclosures" which was not the correct title of the post. So, I simply scrolled back, re-examined it and made the correction in my Title. Oddly enough, that action describes what we do as real estate investors:we correct a problem for someone who doesn't know How and provide the Means- rehabbing economically with a Wholesale Not Retail mindset-and bringing the Property back to the Standard so it captures the attention of prospective buyers.Is anyone out there ready to diligently seek, find and restore neglected properties And be rewarded for your Time and Efforts! Now, since we are Super Heroes in the Housing Industry, let's get educated with Dean Graziosi's books first, then secondly build our buyers list, then third;
Seek( run the numbers)Find and Restore(within a Reasonable Budget;don't cheat "the little people" who contributed to get you to where You are recognized for your effort and Rewarded! Ne'rien Succes Comme Les Succes! Nothing Succeeds Like Success!
anita Page
There are perks to this as well
When remodeling some of the parts that are being swapped out could make you some money........
as you are aware of already Sometimes newer appliances are great but there are soon people out there that seek out certain items that were previously made in an era that are. Not so readily available......
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
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Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
Foreclosures, banks, and remodeling. Like Valerie, I also noticed the sentence regarding Canadian investors. Is this something we should be demanding from American banks? As they say, "Tell me more."
Be your very best always-Judy Williamson
What you focus on is where your energy goes-Kristin
With gratitude,
Patrick