Enlightened Wealth Institute Student on Foreclosure Investing
July 27th, 2008
By: tammy powell
There are a plethora of articles, real estate seminars and courses on how to make money in foreclosure investing. The most interesting thing is that so many people plunk out hundreds and thousands of dollars for these investing courses before even knowing what a real estate foreclosure is. Let’s look at a comparison, would you pay thousands for a Harley Davidson motorcycle before you even knew what a Harley looked like? I think not. So why is it so many people rush to buy foreclosure courses before knowing what a foreclosure looks like? So as I learned from the enlightened wealth institute, a foreclosure can look like a completely run down house, with major repairs needed both inside and outside as the homeowner simply ran out of money to maintain the house, keep his/her payments up to date and a tell tale sign is a growing pile of weeds and dead grass in the front yard. Some real estate foreclosures also look like pretty homes in pretty neighborhoods as the homeowner is battling to keep the home and even thought he or she may not be making their mortgage payments, they are still able to pay their utility bills and keeps the house looking pretty.From a pure paper analysis, a Real Estate foreclosure usually occurs when the borrower fails to pay the debt. The bank then typically files a notice of default after ninety days and the clock start ticking to the day where the bank will take possession of the home. It is important to keep in mind when and if you do start foreclosure investing that there are different reasons the homeowner got into this position; such as taking on too much loan amount, the loss of employment, death, bankruptcy and other reasons. You will negotiate better with the homeowner if you can empathize with their situation.We hear it on the media all the time now that yes indeed we are in a tsunami of foreclosures in America right now. Investing in the foreclosure market then is like learning to swim, you need to watch out for the deep water and be aware that there are a lot of sharks out there as well. You can’t just dive in deep without slowly training yourself up for it and start in the shallow clear water first. For instance, don’t try to do a one million dollar priced home as your first foreclosure deal. Target homes that are worth two hundred thousand or less so that you have less risk if anything goes wrong. It also makes sense to have a coach in the beginning; either ask a local real estate investor doing well to coach you for a fee or investigate all the real estate courses out there.So in case you want to start a foreclosure investing business, all you have to do is just jump into the water you have been trained for. Here are some tips that will help you make better deals in the foreclosure market:1. Get some private money contacts or pre approved by a lender. This will hasten the process of buying the property. 2. Get a great real estate website and blog that attracts buyers so you can ‘cash out’ of your property in days because you had buyers ready!3. Google “foreclosure education and strategy” to find FREE resources.4. Invest at least 5 hours a week learning more about foreclosure investing, start out with fifty dollars or so to buy some reading material on foreclosures.5. Consider investing in a higher end coaching program to be guided step-by-step by people who have a successful track record.
There are a plethora of articles, real estate seminars and courses on how to make money in foreclosure investing. The most interesting thing is that so many people plunk out hundreds and thousands of dollars for these investing courses before even knowing what a real estate foreclosure is. Let’s look at a comparison, would you pay thousands for a Harley Davidson motorcycle before you even knew what a Harley looked like? I think not. So why is it so many people rush to buy foreclosure courses before knowing what a foreclosure looks like? So as I learned from the enlightened wealth institute, a foreclosure can look like a completely run down house, with major repairs needed both inside and outside as the homeowner simply ran out of money to maintain the house, keep his/her payments up to date and a tell tale sign is a growing pile of weeds and dead grass in the front yard. Some real estate foreclosures also look like pretty homes in pretty neighborhoods as the homeowner is battling to keep the home and even thought he or she may not be making their mortgage payments, they are still able to pay their utility bills and keeps the house looking pretty.From a pure paper analysis, a Real Estate foreclosure usually occurs when the borrower fails to pay the debt. The bank then typically files a notice of default after ninety days and the clock start ticking to the day where the bank will take possession of the home. It is important to keep in mind when and if you do start foreclosure investing that there are different reasons the homeowner got into this position; such as taking on too much loan amount, the loss of employment, death, bankruptcy and other reasons. You will negotiate better with the homeowner if you can empathize with their situation.We hear it on the media all the time now that yes indeed we are in a tsunami of foreclosures in America right now. Investing in the foreclosure market then is like learning to swim, you need to watch out for the deep water and be aware that there are a lot of sharks out there as well. You can’t just dive in deep without slowly training yourself up for it and start in the shallow clear water first. For instance, don’t try to do a one million dollar priced home as your first foreclosure deal. Target homes that are worth two hundred thousand or less so that you have less risk if anything goes wrong. It also makes sense to have a coach in the beginning; either ask a local real estate investor doing well to coach you for a fee or investigate all the real estate courses out there.So in case you want to start a foreclosure investing business, all you have to do is just jump into the water you have been trained for. Here are some tips that will help you make better deals in the foreclosure market:1. Get some private money contacts or pre approved by a lender. This will hasten the process of buying the property. 2. Get a great real estate website and blog that attracts buyers so you can ‘cash out’ of your property in days because you had buyers ready!3. Google “foreclosure education and strategy” to find FREE resources.4. Invest at least 5 hours a week learning more about foreclosure investing, start out with fifty dollars or so to buy some reading material on foreclosures.5. Consider investing in a higher end coaching program to be guided step-by-step by people who have a successful track record.