investing: There are three types of foreclosure investing, know the risks and benefits of each
- 04/18/10 02:36 PM
There are three distinct kinds of foreclosure investing opportunities. Understanding the risks and benefits of each is key to your success as a foreclosurfe investor. They are: the "Default/Pre-Foreclosure" phase, the "Auction/Sale" phase and the "REO" phase. This blog post discusses the risks and the rewards of each opportunity. Buying Pre-Foreclosures Buying pre-foreclosures involves working directly with the homeowner and sometimes the lender. Your goal is to create a Win-Win scenario. One win is for the homeowners (they make a sale) and one win is for yourself (you buy the property at a substantial discount). To accomplish a successful purchase, most … (0 comments)
investing: Important tips for the novice foreclosure investor
- 04/18/10 02:23 PM
There isn't much difference between investing in foreclosure homes for resale and investing in foreclosure homes for rental income. Many of the same rules apply and many guidelines remain constant. As with any type of investing, the point at which you enter will determine how profitably you exit. The single largest distinction between real estate investing and stocks, bonds, mutual funds or precious metal is that real estate allows the investor the opportunity to have a more direct and immediate impact on the investment vehicle, the foreclosure home, through rehab, paint, carpet, etc. This post demonstrates how to quickly make an … (0 comments)
investing: Five Tips for the Foreclosure Investor
- 04/07/10 02:48 PM
These simple, yet effective tips I havepersonally found invaluable. Hopefully you, too, will benefit from them as you invest in real estate foreclosures. Tip #1 - The rewards are greatest when the real estate investor is a knowledgeable, proactive force in the process. Take an active roll in your foreclosure home investment. This begins with the right state of mind. Tip #2 - The figure for days on the market (DOM) a property was available before its eventual sale will be found in the MLS listing. Be sure to ask your local real estate agent for these figures specifically to help … (4 comments)
investing: House flipping makes a comeback ... in the most surprising places
- 04/02/10 01:56 PM
House flipping, the selling of property within six months of purchase by investors, was once discouraged by the government. But these days, the activity is more than welcome as investors fixing up and quickly selling at a profit is helping to reenergize some of the hardest hit housing markets. The Federal Housing Administration implemented a one-year waiver of anti-flipping rules effective Feb. 1, so borrowers can now get FHA financing to acquire homes from investors who have held title for less than 90 days. So where is flipping making a comeback? In some of the most depressed markets in the nation. … (0 comments)
investing: Investing in Foreclosure Homes: Risks and Rewards
- 03/26/10 05:00 PM
The mortgage foreclosure process creates three sets of real estate investment opportunities: the default/pre-foreclosure phase, the action/sale phase, and the REO phase. This post covers the risks and rewards of each.
Buying pre-foreclosure homes involves working directly with the homeowner and sometimes the mortgage lender. Your goal is to create a win-win scenario. One win is for the homeowners (they make the sale) and the other win is yours (you buy the foreclosure home at a substantial discount).
To accomplish a successful foreclosure home purchase, most experts recommend the following:
1. Locate loans in default. 2. Evaluate and … (1 comments)
investing: Investing in Real Estate: How to sell your foreclosure home
- 03/16/10 04:20 PM
When investing in real estate, there are numerous strategies available to help maximize your equity depending on your short and long term investing goals. Designing your exit strategy is as important as the home purchase itself. This post outlines some strategies that can potentially increase your return when investing in real estate. Strategy 1 -- Buy and Cash Out Buying to cash out is the most easily understood form of real estate investment. Despite its simplicity, there are still useful strategies for increasing your return. Begin advertising and showing the foreclosure home the day the contract is ratified. Strategize the way … (2 comments)
investing: Foreclosure investing 101
- 03/14/10 02:10 PM
Many new real estate investors hold the misconception that foreclosures are purchased directly from the bank. It is natural to assume that the bank owns the home; however, whether through a Deed of Trust or Mortgage, the title to your home is either held by a third party or pledged as security for the loan. So, in fact, the bank does not actually own the foreclosure home at all. You borrow money from and give mortgage to the bank. The mortgage is the security instrument utilized to protect the bank from loss should you default on the home loan. Unless you … (2 comments)
investing: Tips for aspiring foreclosure investors
- 03/14/10 01:56 PM
When it comes to investing in foreclosure homes for resale and investing in foreclosure homes for rental income, there isn't a vast difference. Many of the same rules apply and many guidelines remain constant. As with any type of investing, the point at which you enter will determine how profitably you exit. The single largest distinction between real estate investing and stocks, bonds, mutual funds or precious metal is that real estate allows the investor the opportunity to have a more direct and immediate impact on the investment vehicle, the foreclosure home, through rehab, paint, carpet, etc. This post demonstrates how … (1 comments)
investing: For how much can I sell my foreclosure investment property?
- 03/04/10 01:32 PM
As a general rule, most investors are motivated to purchase with a minimum 25 percent equity position (after repairs). This requires two seperate deductions in order to be sure of a 25 percent equity position: the true market value of the subject property (again, after repairs) and the actual repairs. In order to determine the true market value without ordering a full appraisal which can be prohibitive both in terms of time and cost, an investor must look at comparble sales. Comps are available from your real estate agent or online from services like HomePriceCheck. While the online services may serve … (0 comments)
investing: Five Foreclosure Investing Tips
- 03/04/10 01:09 PM
These are five simple, yet effective tips to help the foreclosure investor that I have personally found invaluable. Tip #1 - The rewards are greatest when the real estate investor is a knowledgeable, proactive force in the process. Take an active roll in your foreclosure home investment. This begins with the right state of mind. Tip #2 - The figure for days on the market (DOM) a property was available before its eventual sale will be found in the MLS listing. Be sure to ask your local real estate agent for these figures specifically to help determine the desireablility of a … (2 comments)
investing: Can you afford to fix your prospective HUD home?
- 03/04/10 12:48 PM
So you've found a forclosure property that looks like a promising investment, but upon closer inspection needs some work. Is it still a good deal? When time is of the essence, here is a quick guide to estimating repair costs that could help you avoid a foreclosure boondoggle. After looking at the comperable sales, the investor need only reduce the repairs to hard dollars and cents figures in order to calculate whether the HUD home can be purchased and repaired for 75 percent of its market value (25 percent being the magic equity number). To estimate repairs, one could solicit any … (3 comments)
investing: Getting started in foreclosure investing
- 03/04/10 03:39 AM
A common misconception among many new real estate investors, is that the bank owns the foreclosure home; however, whether through a Deed of Trust or Mortgage, the title to your home is either held by a third party or pledged as security for the loan. So, in fact, the bank does not actually own the foreclosure home at all. You borrow money from and give mortgage to the bank. The mortgage is the security instrument utilized to protect the bank from loss should you default on the home loan. Unless you bought a bank foreclosure home directly from the bank, the … (3 comments)
investing: Now is the time to get started in foreclosure investing -- here's how
- 03/02/10 01:29 PM
Many new real estate investors hold the misconception that the banks own foreclosure homes; however, whether through a Deed of Trust or Mortgage, the title to your home is either held by a third party or pledged as security for the loan. So, in fact, the bank does not actually own the foreclosure home at all. You borrow money from and give mortgage to the bank. The mortgage is the security instrument utilized to protect the bank from loss should you default on the home loan. Unless you bought a bank foreclosure home directly from the bank, the bank has never … (1 comments)
investing: The Risks and Rewards of Foreclosure Investing
- 03/02/10 12:19 PM
The mortgage foreclosure process creates three sets of real estate investing opportunities: the "Default/Pre-Foreclosure" phase, the "Auction/Sale" phase and the "REO" phase. This blog post discusses the risks and the rewards of each opportunity. Buying Pre-Foreclosures Buying pre-foreclosures involves working directly with the homeowner and sometimes the lender. Your goal is to create a Win-Win scenario. One win is for the homeowners (they make a sale) and one win is for yourself (you buy the property at a substantial discount). To accomplish a successful purchase, most experts recommend the following: (1) locate loans in default, (2) evaluate and narrow selections to … (0 comments)
investing: The Curse of the Perpetual Researcher
- 02/23/10 01:26 PM
In life, there are a handful of "great truths," universal lessons that we must all master in order to attain happiness and fulfillment. One of those truths is that we more often regret the things we did not do, rather than those things we did. And so the difference between a happy person and an unhappy person most often is action. If you want to, say, move to Florida and rent jet skis for a living but for whatever reason fail to take action, you will constantly live in a state of discontent. Even if you try your new venture and … (3 comments)
investing: Why should I buy a foreclosure?
- 01/29/10 12:32 AM
Regardless of what some say about your house not being an investment, you should still try to save as much as you can when making ANY purchase. This is especially true in today's market and especially if the purchase is as expensive as a house. Foreclosures offer the oppotunity for significant cost savings, allowing the homebuyer far more house for the dollar. Many buyers got themselves into trouble with the subprime market not because they bought too much house, but because they bought too much mortgage. There is a huge difference between the two, and do not let the talking heads … (2 comments)
Michael Urbanski is the chief executive officer of Heavy Hammer, Inc., and USHUD.com. Headquartered in Annapolis, Michael oversees the online networking and consulting company advocating for American homebuyers, connecting them with trusted experts and valuable resources. Driving one of the most widely used suites of foreclosure Websites, Heavy Hammer delivers all-inclusive, free lists of foreclosure properties to more than 500,000 homebuyers monthly. In business since 1998, Heavy Hammer has focused on geographically-based ad serving technology and processes allowing thousands of professionals to target specific locations, connecting directly with consumers in specific locations. Starting with USHUD.com, this group of sites now includes more than 30 state- and region-specific sites.
There are three distinct kinds of foreclosure investing opportunities. Understanding the risks and benefits of each is key to your success as a foreclosurfe investor. They are: the "Default/Pre-Foreclosure" phase, the "Auction/Sale" phase and the "REO" phase. This blog post discusses the risks and the rewards of each opportunity.
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