Investing in PRE FORECLOSURES/ INVESTMENT REAL ESTATE

NOD INVESTING:
NOD Investing will be the focus of the next several chapters we will have regarding successful Investing in pre-foreclosures. While it is one of the more time intensive aspects of foreclosure real estate investing it is also one of the safest and most preferred, especially for new investors for these four key reasons:

1. Investing in pre-foreclosures allows for Abundant time to close to escrow

2. The buyer has plenty of time and the ability to perform their due diligence and visual inspections

3. The investor has a wider range of financing options

4. The buyer has the important ability to purchase and secure Title Insurance

There is a 90 day period from the time the homeowner is first informed of the default to the next stage in the foreclosure process. Many homeowners will be able to collect the money from other investments, family members, friends, and other sources in order to bring their loan current and remove the Notice of Default from their record. In these instances, your real estate investment services will most likely not be required, and you may be contacted by homeowners for nothing more than some basic information about what you do and some questions for advice on what they should do next. It is always wise to leave your information with them, check back with them after a few weeks, offer future help if they cannot resolve their real estate foreclosure problem themselves, and leave the door wide open for future conversation. Many of these homeowners will return to default status in the future.

You will often find that homeowners cannot make the back payments due to loss of work, illness, divorce and a basket of other reasons. They may have already contacted the bank and other lenders and found that those lenders are generally unwilling to offer any help or concessions. This is an opportunity to prescreen the situation, collect some additional information about the foreclosure real estate and the homeowner, and set an appointment to openly discuss their foreclosure options and offer some additional free advice on the steps they may need to take.

As a general rule, these real estate foreclosure properties can be bought with little competition, there is little need for the you as the buyer to have instant cash, and there is a fair amount of time for the buyer to conduct proper Due Diligence. If you work smart, take my step-by-step approach, and make a truly investment-based decisions, you will only have to do a handful of these deals each year to make substantial money. Often six figures or more, and surely do it easier than the 9 to 5 job you hold now.

The general process for securing foreclosure deals goes like this:

1. Prepare yourself and your marketing material
2. Secure the Notice of Default information from a reliable and steady source
3. Evaluate and weed out the good deals
4. Mail information to these foreclosure real estate homeowners and stop by the properties
5. Talk with owners and negotiate deals
6. Sign and close

Other GREAT foreclosure and investment articles:

http://www.propertyhookup.com/article/3/Buying_Foreclosure_Real_Estate_from_the_Bank.html

http://www.propertyhookup.com/article/4/How_to_find_Foreclosure_Properties.html

http://www.propertyhookup.com/article/7/Understanding_the_4_Stages_of_the_Foreclosure_Process.html

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