How Real Estate Fortunes Can Be Made With Preforeclosures

Preforeclosures: How Real Estate Fortunes Are Made
--By Jeffrey Ringold © All rights reserved.


Preforeclosure

What is preforeclosure? Preforeclosure is the time period from which the bank gives notice of default, once the homeowner is approximately 90 days late in payments, to the time the house sells at auction. Preforeclosure is also the most crucial time in the foreclosure process. It is during this period that you as an investor stand to make the largest profits and can literally make thousands of dollars in months, weeks, days, or even hours!

The key to preforeclosure houses is equity. Simply put, equity is the difference between what a house will sell for (fair market value) and what is owed on the house. The whole concept to making money with preforeclosures is to buy a house for less than fair market valuing, thus immediately creating equity for yourself.

Here is an example of how this can work. Let’s say someone owns a house with a fair market value of $200,000. Now let’s assume that this homeowner has lived in the house for several years. If you consider that the property has most likely increased in value over time, while at the same time the homeowner has been paying down the mortgage on a monthly basis, it is fair to assume they owe less than $200,000 on the property.

For this example let’s assume that the homeowner owes $160,000. This means there is $40,000 in equity in the house. As an investor, you would want to buy the house for $160,000 or slightly higher. If you can do this, you have a shot at making $40,000.

I know what you are thinking. Why would they sell the house for $40,000 under the market value? Right? Here is one reason why. If they sell the house to you, you can promise them a quick closing, thus stopping the foreclosure (losing the house at auction).

This will prevent a foreclosure from going on the homeowner’s credit record. A foreclosure can stay on someone’s credit for seven to ten years making it next to impossible to get another mortgage in the future. This is just one of many reasons.

So let’s say they sell the house to you for $160,000. You can turn around and put the house back on the market for the $200,000 that it is worth. Once the home sells, you could put a whopping $40,000 in your pocket. Sounds pretty nice, huh? The best thing is there are ways to make similar deals with little or no money! An that is an example of how you can make money with preforeclosure houses.

In order to buy preforeclosure houses you first need preforeclosure leads. This is how you are going to get your leads. You are going to implement a powerful direct marketing campaign soliciting those who are in preforeclosure. How do you learn where to start looking?

One of the most valuable sources for preforeclosure leads is mortgage brokers. Almost everyone knows a mortgage broker. Maybe your brother is a mortgage broker. Maybe a good friend is a mortgage broker.

If you don’t know anyone in the mortgage business, network a little bit. I am confident you will be introduced to someone in the mortgage field that can help you.

If not, that is OK too! You will just have to do a little more legwork. Go through the yellow pages and look for mortgage companies. Start calling around and introducing yourself. See if you can talk to the manager. If not ask to speak to a loan officer.

Ask them if they have someone in particular that handles foreclosure financing. They may or may not. Often times in mortgage companies, they will receive large volumes of calls from distressed homeowners.

These are homeowners who are trying everything to stop foreclosure. Most of the time, it is too late for the mortgage company to help the homeowner because their credit is already shot. At this point the mortgage company may refer them to what is sometimes call a hard money lender. A hard money lender is a lender that specializes in high risk loans. Often times, they are private investors.

This is where you come in. These leads are invaluable. They are homeowners that are exhausting their last options to save their home. What you do is have the mortgage company start to refer these deals to you. If you can get the names and phone numbers of these homeowners, you can contact them directly. More importantly, you can contact them when they are open to listening and expecting your call. If the mortgage representative that can’t help them gives a high recommendation of you to the homeowner, they will be excited to hear from you.

About The Author:
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Jeffrey Ringold is the author of ‘How To Build A Massive Fortune Through Real Estate Foreclosures’. He is a licensed real estate agent and investor who has bought or sold over $12 million in real estate over his 7 year career. He is consulted by leading real estate developers and investors almost daily.

For more information on real estate investing and foreclosures, visit his web site at: www.MassiveForeclosureProfits.com
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Understanding How To Build Massive Wealth With Real Estate Foreclosures

'How To Build Massive Wealth In Real Estate Foreclosures' - Understanding Foreclosures
--By Jeffrey Ringold © All rights reserved.

Defining Foreclosure and How it Occurs

According to The American Heritage dictionary, foreclose is defined as: 1. To deprive (a mortgagor) of the right to redeem mortgaged property, as when he has failed in his payments. Foreclosure is defined as: 1. The act of foreclosing, especially a legal proceeding by which a mortgage is foreclosed.

In layman’s terms foreclosure is when a borrower fails to make payments on his or her house and the bank takes action to protect their loan. How does foreclosure happen?

When someone buys a home they generally finance the purchase. In other words, they borrow money.

There are two parties involved in this transaction. There is a lender, also called the mortgagee and there is a borrower, also called the mortgagor. The lender loans the borrower money to purchase their home and, in turn, the borrower gives the lender a promissory note to repay the borrowed sum of money.

Now, the next step is the lender has to protect their loan amount, so they use the house as collateral.

The mortgage becomes what is called a lien on the property. That house can’t be sold with clear title until that lien is paid off. The promissory note is a promise that the borrower will pay the lender back in a timely fashion and as stipulated in the note.

Note: Some states use what are called Trust Deeds as opposed to a mortgage. This newsletter is focusing on properties with a mortgage as the lien.

When a borrower does not adhere to the terms of the agreement, meaning they don’t make their payments, the lender starts the foreclosure process in order to recoup their money. Typically, a borrower must be 90 days behind in order for the lender to the start the foreclosure process.

This means the borrower has not made payments in approximately three months. The borrower is said to be in arrears at this point. They owe the lender the 3 months of payments plus interest. The lender, under the terms of the original agreement, has the right to call the balance of the loan due immediately.

This starts the foreclosure process. If the borrower does not pay the lender the money, the house will go to public auction and will be sold to the highest bidder.


About The Author:
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Jeffrey Ringold is the author of ‘How To Build A Massive Fortune Through Real Estate Foreclosures’. He is a licensed real estate agent and investor who has bought or sold over $12 million in real estate over his 7 year career. He is consulted by leading real estate developers and investors almost daily.

For more information on real estate investing and foreclosures, visit his web site at: www.MassiveForeclosureProfits.com
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Are Public or Sheriff's Auctions Right for You To Start Real Estate Investing?

Real Estate Investing: Are Sheriff’s Auctions Right For You?
By Jeffrey Ringold © 2004. All rights reserved.


Public Auction or Sheriff’s Auction

Public Auctions or Sheriff’s Auctions are not for the novice real estate investor. Generally they are the most risky time to purchase foreclosed property. This is not to say that they can’t be an overwhelming profit center. There is no doubt that auctions can yield major returns.

What happens at an auction is generally very similar in all states. Some states will auction the property in a courtroom and others will literally auction the property on the courthouse steps.

At an auction there will typically be a referee who handles the bidding. Most likely there will be a representative from the bank that is foreclosing, and there will be some investors present, and others just interested in what is happening.

The bidding at an auction will start at whatever is owed to the bank, plus legal fees. Like preforeclosures, auctions are a good time to buy property at below market value. Buying below market value will give you equity. I have seen properties sell for half price at auctions!

You can find great deals at auctions, but there are also many pitfalls, particularly for novice investors. One major obstacle with auctions is you generally need to pay cash, on the spot, for the property. This alone eliminates 95% of people from buying at auction.

Another drawback to auctions is that the homeowner is given a redemption period. Typically, the redemption period is six to twelve months. From the time the house sells at auction, the homeowner has the right to buy it back for what it sold for plus interest. This means you could buy a house at auction and might have to sell it back to the original owner during the redemption period. Additionally, if the homeowner does not move out at the end of the redemption period, it becomes your responsibility to remove the tenant through the eviction process.

Public auctions are very easy to find. Just call your local county assessor’s office and ask whom you need to speak to regarding sheriff’s auctions.

About The Author:
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Jeffrey Ringold is the author of ‘How To Build A Massive Fortune Through Real Estate Foreclosures’. He is a licensed real estate agent and investor who has bought or sold over $12 million in real estate over his 7 year career. He is consulted by leading real estate developers and investors almost daily.

For more information on real estate investing and foreclosures, visit his web site at: www.MassiveForeclosureProfits.com
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What to do to sell a home in 30 days or less: One thing would be is to consider calling a lawyer

Article summary:

When you sell your own home you need to be prepared. Make an appointment with your lawyer so they can prepare you for any legal pitfalls you may be facing at closing time. Sorting these issues out before you sell can ensure a smooth transaction at the most critical of times down the road.

Calling a Lawyer Should Be a Private Home Sellers First Move
by Richard Embro-Pantalony

You are selling your own home because you think you’re up to the task, that it can’t be that difficult? You’re right of course; however you want to make sure you abide by some basic common sense guidelines to help ensure your success. It’s not all about putting a sign on the lawn and an advert in the paper.

Your first step should be calling a lawyer. If you don’t have one you will need to find one. A good bet is to get a referral from friends or family. A lawyer at this stage of your sale will give you all the legal information you need to enter into the sale with a confidence that would be lacking otherwise. Your lawyer can do a title search on your home to make sure it’s free of encumbrances that may only turn up on closing i.e. an encroachment. Do you have an up to date survey? These can be deal killers at the last minute you want to avoid. You’ll need a search done anyway to close your sale.

Lawyers can also advise you on any new by-laws or regulations you should be aware of for your home and area. Every jurisdiction seems to have rules that need to be followed when preparing an offer to purchase form. A lawyer can make sure these special clauses are written into your offer to purchase form. Have your lawyer provide you with copies of the offer to purchase in hard copy format and also on disk so you can print them off your home PC when needed. Ask your lawyer how he would prefer to see your offer set up.

Ask your lawyer to give you any information you will need to make the closing of your sale timely and without any surprises. If there is anything that will hold up or quash your deal you want advance notice so you can take care of the problem now. Count on being charged for your lawyers’ services but it’s the old adage pay me now or pay me later.

Ask your lawyer to give you some insight into your mortgage situation. He can give you details and options based on your current loan that perhaps will help your sale. At the very least the lawyer can give you questions to ask at your lending institution i.e. is your mortgage assumable? If the interest rate and terms are attractive the purchaser may want to assume your current mortgage. All good stuff to know in advance of your sale. Likewise your mortgage may need to be removed so the purchaser can arrange their own financing. What are the ramifications with this, will it be expensive to remove?

When you recruit a real estate agent to help you sell your home, the good ones know all this information in advance. Any information they don’t have that can create problems generally surfaces at closing thanks to the lawyers. Your agent acts in your best interests along with your lawyer to sort out these problems at closing and many issues are usually dealt with to either parties’ satisfaction one way or another.

Not having an agent working for you means your chances of having a problem sometime during the process of trading your real estate is a real probability. The best way to mitigate your chances of potential headaches is to spend the money up front for a legal professional to sort through the landmines before you step on one and your deal disintegrates at the worst possible time. You’ll be investing a great deal of time selling your home. Make sure you are prepared. It is fairly simple to sell your own home. Closing that sale cleanly is another matter entirely.

Richard Embro-Pantalony is the President of realestatemate and author of "How to Sell Your Home Like a Pro". He offers expert advice on selling your home privately and saving agent fees'

For a copy of a free report on how to sell your home yourself in 30 days or less, visit Home Sold In 30 Days without an agent

What Every Yellow Pages Advertiser Needs to Know BEFORE SPENDING A DIME!

3 Things Every Yellow Pages Advertiser Needs to Know.  By Alan Saltz _______________________________________________________________________    Most business owners and marketers know that Yellow Pages advertising has an incredible amount of potential... but they don’t know how to take advantage of it.    Fortunately, it's a mystery that's solved pretty easily once an advertiser knows where to turn for advice.  There are fundamental truths about Yellow Page advertising that so many businesses fail to recognize, but once they do they find themselves "on top of" a medium with an incredible amount of business generating power.    It's a medium, that handled correctly, will generate new business month after month like clockwork.  That said... let's try to understand it a bit better, shall we? 1. Common Yellow Page advertising mistakes are simple to fix.    Very simple. You don't have to be a graphic designer or marketing expert to drastically improve your ad either - you just need to know your customers.     You see, most Yellow Page ads make the very same mistakes... year after year... directory after directory... category after category.  Some of the ads I see from professional design firms are riddled with the same mistakes too... the ad only looks nicer.    That won't cut it in the Yellow Pages.    While a professionally designed ad can certainly help grab attention, there is no substitute for ad content (read: words) if your goal is to generate a phone call.  And when it comes to Yellow Pages advertising, that's all that really matters.  By learning what makes a good headline, good body copy, and how to develop a strong offer your Yellow Pages ad will run circles around an ad that just "looks great," but makes the same mistakes most others are making.  An example? Using your name and logo as the headline.  It's disastrous and yet more advertisers do it than not. No one cares what you call yourself until they've decided to pick up the phone and actually call you.  Your company name does not win you business.    So if your name and logo is at the top of your ad... if it's big and bold and takes up space... if it takes the place of an attention grabbing, hard-hitting headline... you've made a big mistake.    Of course, like most common mistakes, it's a pretty easy mistake to fix.   (No design skills necessary, right?)  You just need to know what makes a good headline.  That's beyond the scope of this article, but you'll find a website at the end that will pick up where this leaves off.    First, here's fundamental truth number 2... 2. Most Yellow Page ads are developed by the directory publisher.    That's right - the directory itself develops most of the ads you see. What happens if they design your ad and 4 of your competitors' ads? Can you expect your Yellow Page ad to receive more time and attention than another? Can you expect it to be any better or stand out more? When it comes to Yellow Pages advertising, those that know how to set themselves apart from the pack fare well. Nice design might get you noticed, but it often doesn't earn the phone call.    Good ad copy, on the other hand, grabs attention like a magnet and doesn't let it go.    Don't just hand the reins to someone else and let them develop your ad for you.  Learn what it takes to generate response and play a role  in developing that winning ad for your business.    Because no one knows what makes your customers "tick" like you do.  A graphic designer knows graphic design,not plumbing, dentistry, appliance sales, or whatever it is that you do. 3. Yellow Pages Advertising is different from just about EVERY other medium you use.    You might want to re-read that.    Yellow Pages advertising is different because people see your ad when they are ready to buy.     A newspaper ad?  That's a distraction.  People are reading to get the news.    This is a huge difference!  Almost every Yellow Page ad I see takes the approach: "This is who I am and this is what I offer."    Guess what - that's dead wrong! All that matters in Yellow Page advertising are "the reasons someone should choose you over your competition." Telling them what you offer, the brands you carry, and your business name does little good. They know what you offer. They're looking at your ad because their tooth hurts and they turned to the Dentist category.  Focus on "why, withall of these options, they should choose you!"    Your prospects are a skeptical bunch.  Make contacting you and giving your business a shot a risk-free, value-filled, proposition for them - when done correctly this will give any business a tremendous edge over the competition.    Care to learn a little more?  ------------------------------------------------------------------------------------------ Alan Saltz, the author, teaches Yellow Pages Advertisers how to boost their response and return on investment, using simple, but extremely effective techniques.  His website offers unbiased Yellow Pages Advertising advice and tricks that anyone can implement.   For more information visit: www.YellowPagesProfit.com ------------------------------------------------------------------------------------------

Yellow Advertising Secrets

Is Your Yellow Pages Advertising Putting Cash in Your Pocket, Or Sucking Cash Out?

by Alan Saltz

________________________________________________________________

   Any idea?

   It’s a question that more than a few Yellow Page advertisers ponder. If you're currently spending money every month to run an ad in your local directory, you don’t want to wrestle with that question. You want to know that your investment is generating a consistent flow of new clients to your business.

   So what can you do to maximize returns and stop worrying?

   First of all, know this—Yellow Pages Advertising has incredible potential. As a business owner, you have few other ways to reach prospects who are as targeted, and ready to buy as these. But naturally… your success depends on the quality of your ad. And when it comes to ad content, far too many advertisers are quite simply… lost.

“The red-hot commodity of the Information Age?
Why that would be the Yellow Pages… It’s like
shooting fish in a barrel.”
Fortune   July, 2003

   There are few places to turn. It makes for an unpleasant situation for the honest businessperson trying to harness the tremendous potential of such a perfectly targeted medium. And so, most advertisers rely on the Yellow Pages design department, who, as it turns out, develop most of the ads in their directory.

   It’s hard to differentiate your company if that’s the case, don’t you think?

   While many advertisers fail to develop an ad that draws a strong response, that doesn't mean it's difficult to do. In fact, because of the mistakes that “riddle” just about every subject heading, there's an amazing opportunity for the business owner that does his homework. If you’re reading this article, you’re doing your homework.

“How come we still have the Yellow Pages?
They Work. You don’t go to the Yellow Pages and look
up pizza unless you’re planning to order pizza.”
Fortune   July, 2003

What Yellow Page success boils down to is ad content. Not color. Not professional design.

   Sure, those things matter too; but they are nowhere near as important as the words you use to fill your ad. People turning to the Yellow Pages have already determined that they need you. They just need to know whether they should call company A, B, or C.

   Their choice doesn’t depend so much on color or design, as it depends on what you offer that your competitors don’t -- the policies you hold yourself to that give consumers faith in you and your business -- they way you build credibility, and actually give a prospect insight into "how" you do business.

   Here is a point you need to understand… Listing the brand names you carry and the “laundry list” of products or services you offer don’t build credibility. They don’t set you apart from your competitors who offer the same thing!

   Plenty of other things do. And chances are you embrace those policies and those hassle, and risk removing motivators already. You probably do quite a bit for your clients that make their lives easier, more lucrative, more pleasant, and so on. You probably have credibility boosters that you’ve never considered including.

    And that is because you may not realize the power they have in motivating an eager prospect to act. Iron-clad guarantees… customer testimonials… rock-solid offers for new customers… a headline that goes well beyond your logo and company name; these are things that work wonders in a targeted, ready-to-buy medium such as the Yellow Pages.

   When your competitors focus on the same "laundry-list" of products and services offered -  they only appear like AN option.  Use the copy points I talk about above, and you show your prospects why you're A GOOD option.

   There's a huge difference.

   That’s what the Yellow Pages are all about, right... showing an eager prospect why they should call you instead of one of your competitors.

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Alan Saltz, the author, teaches Yellow Pages Advertisers how to boost their response and return on investment, using simple, but extremely effective techniques.  His website offers unbiased Yellow Pages Advertising advice and tricks that anyone can implement.

  For more information visit:

http://www.YellowPagesProfit.com

Lola, our puppy...her first music video!

This is a little music video shot of new puppy Lola. She is a long-haired Chihuahua (sp?) and will probably not get any bigger than you see her now. I thought I'd share our new little puppy with everyone. She's a cute little dog...

Enjoy!

Ed
PDXLoan.com

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