Everyone knows someone whose house is being foreclosed on. Sad for them. Great for you. Why?
Buying foreclosed properties is the single greatest wealth building opportunity available to ordinary Americans today.
Banks are taking back more properties than they know what to do with. Recently, a Bank of America employee casually mentioned to a conference of home builders that the bank was planning to increase the pace of foreclosures from 7,000 per month to 45,000 per month.
That’s more than 500,000 homes this year. There is literally no chance that normal, everyday home buyers can absorb all of the properties BofA will foreclose on this year, and that’s just one bank!
Here’s where you, the investor, come in:
As an investor, you can move more quickly than a normal home-buyer. You don’t have a spouse hemming-and-hawing about the drapes or the color of the walls or whether your kids will like the neighborhood. You are dispassionate; you think of homes as investment opportunities and nothing more. That lets you make decisions about potential acquisitions much more quickly than average home-buyers, who are you competition.
The only thing holding you back from buying many, many properties is money. Sure, you may have banked enough to buy one or two foreclosed properties. And maybe you can borrow a bit more. But this opportunity dwarfs the resources that you have available. How do you find the money to take advantage of this opportunity?
Fortunately for you, there are many other smart people who can see the value to be created in the REO / foreclosure market. Their problem is that they lack the time and expertise to buy and manage the properties. They would be very happy to have someone like you put in the time and effort in exchange for a piece of the action. But where do you find these people, and how do you negotiate the deals?
Here are some helpful hints for finding the money you need to get into buying foreclosed and REO homes in a big way:
1. Speak with your lawyer and / or accountant: They know many people with extra money, many of whom are interested in getting into real estate while the market is at its bottom. They may be happy to make the necessary introductions for you.
2. Join the local chamber of commerce: If you want money, you need to get to know local business owners. These are the type of people who have access to a spare $100,000 and the appetite for risk necessary to bet on you.
3. Network with local real estate agents: They have clients who are thinking the same thing you’re thinking. They would love to put you together and maybe earn commissions when you buy and, eventually, sell your properties.
Want more ideas for profiting from the foreclosure crisis?