Perhaps you’ve been interested in having a real estate business of your own but without the resources that normally associated with it such as good credit and large savings one might be discouraged to even try. However, it is not important for you to have these resources to get started in finding financial independence.
And your first step into real estate investing could start with pre-foreclosures. What this term signifies is the period between which the house on which the bank has filed initial foreclosure papers and the sheriff or trustee sale that is yet to happen. And if you think this is not doable, think again!
Reason #1: No one is making any payments on the house during this period, which can turn out to be a big advantage for even investors who are worried about holding costs.
Reason # 2: Since this is a very well-defined market, just by focusing on conducting adequate marketing campaigns and following through on standardized processes can ensure that deals are closed, with you smiling your way to the bank.
Reason #3: Talking to sellers who are losing their home and need to get the banks off their back can help you get a good deal on the house and is not as difficult as you think.
Reason #4: Buying these houses helps you to create large equity spreads.
Reasons #5: Large discounts can be negotiated since lenders would rather liquidate the loan rather than repossess the property.
Reason #6: Getting bank financials normally for property discourages people to buy property but with pre foreclosures no qualifying is needed as you just take over the financing in place, while enjoying all the financial benefits as well.
Reason #7: You won’t have to maintain large reserves in cash in order to bid at the auction, as you would have bought over the house long before it even happens for discounted rate.