Jakemann Racing

There are a lot opportunities being made available to investors due to the current rise in the number of foreclosure houses.  These properties could be purchased at very low prices because the banks and lenders are usually anxious to sell them and convert them into liquid cash that they can use in their business of lending money.  What is important here is to find these types of houses before other people locate them because the selling price is likely to increase if there are more people who want to buy a particular property.  You could search for these homes through banks, direct mail, newspapers, seminars, real estate agents, word of mouth, friends, lis pendens lists, and the Internet.

If you have found one of these foreclosure houses when it is still in the pre-foreclosure stage, you will have to talk to the homeowner.  Take note that the homeowner may not be in a good mood when you try to contact him but somehow you will have to request for permission to get a professional house inspector to look the property over.  This is vital because the property may have some damage that would require a substantial amount of money to repair.  If this repair cost is not taken into account in your estimates, you may be selling the property at a loss instead of gaining a profit.  However, you may then try to close the deal after talking with the homeowner and the lender if your computations still show a profit after the expenses for the repairs have been included.

Another way to look for foreclosure homes is through the auction notices, after which you will need to visit an auction that is taking place for you to get used to the process and to provide yourself with an idea about the down payment and deposit that are required.  Next, you will need to research those homes that have the potential for substantial profit.  After this, you will need to make an estimate of the various expenses that are required and then calculate the highest bid that you could make for the property.  Remember to bring along your deposit to the auction and to be ready with the source of your funding for the down payment before going to the auction.

The Real Estate Owned (REO) lists of lenders and banks is another source for finding profitable forecloser houses.  The lender is often highly motivated to sell these homes because they were the ones that were left after the foreclosure auction.  While it may require some patience, it is possible for you to negotiate with the bank for a substantially discounted price. Check us out at HardMoneyLendersOnline.com