Real Estate – Scoop Central

How do you know what approach to real estate investing is really best for you?  Starting many years ago, we learned about the power of foreclosure investing.When attempting to explain foreclosure investing, you could cover a wide range of topics from a homeowner missing their first mortgage payment all the way to the house selling at the courthouse steps.

Then came pre-foreclosure investing.  Pre-foreclosures really have everything to do with what happens from the time a notice of default is filled at the local courthouse and whether or not the house ever makes it to the courthouse steps. 

Reason #1 Sellers Have Compelling Reasons To Sell

I don’t know why sellers who get into this situation end up doing the same thing virtually every time, they just do.  In virtually every case, when you see this situation develop, the homeowner is usually going to fail to make a mortgage payment and the property falls into foreclosure.

When a homeowner falls behind on the mortgage payment, its very difficult for them to catch up.

The main causes leading up into pre-foreclosure are:
1. Divorce
2. Loss of job
3. Extended or prolonged illness
4. Job or position transfer
5. Drug and/or alcohol dependency

Homeowners who find themselves in pre-foreclosure almost always have to sell in order to avoid having the house sold off at auction.  Experienced property investors know that when they help sellers first, they are then rewarded with these steeply discounted investment properties.

Reason #2 – Less Competition For The Experienced Real Estate Investor

The majority of real estate investors do not know how to properly search out and find the most profitable investment properties in a given market.These so called real estate investors search through the classified ads each week and focus on buying investment property at retail prices.  Some of these investors may work with a real estate agent and attempt to find invesment property – but these are still listed properites with retail prices.

You cannot build lasting wealth through real estate investing if you’re paying too much for investment property.You must learn how to buy investment property at wholesale prices.

Serious pre-foreclosure investors do not pay retail for investment property and do not work regulary with real estate agents.  These investors know how to search out and find the best real estate investing deals on the market.Pre-foreclosure investors don’t wait around – they take action and meet with these sellers. 

Now some pre-foreclosure investors mail out post cards and make phone calls in attempts to contact sellers in pre-foreclosure.  But I have found that the most effective way to target pre-foreclosures is by traveling out to each property and physically knocking on the door and discussing the situation with the homeowner. 

What’s great about this approach is that it offers the higest return on investment with the least compeition.Pretty good combination if you asked me.