Real Estate investing is one of the best home business opportunities by which one can build wealth.
However, most people continue to avoid taking this step because they think that in order to run a successful real estate investing business, you need a large amount of money as well as perfect credit.
Nothing can be further from the truth especially when you look for homes in the pre-foreclosure market. Pre-foreclosure home, quite simply, refer to homes where the bank have filed the initial pre-foreclosure papers. In fact, you can buy a home with a few hundred dollars and sell it at a substantial profit during this phase.
So here are 3 reasons why you must invest during the Pre-Foreclosure period:
#1: Homes that fall into this bracket usually involve the seller not being able to pay the mortgage and in most cases, have stopped making payments. In fact, this turns out to be a big advantage for investors who are worried about holding costs.
#2: Buying a home at an auction requires a lot of money but also the ability to outmuscle other opponents who might have more cash than you. Since there is more than one person after this home, you can also expect a lot of mind games and trash talk. Of course, all this can be avoided if you buy the home during the pre-foreclosure period and much before the auction is held to sell the home.
#3: Lenders or banks almost always prefer to liquidate bad loans rather than possess the property. With good negotiating skills and perfect timing, you can quite easily obtain larger and larger discounts but especially so if you are aware of the issues that put pressure on lenders to offer discounts.