Buying real estate for Pennies on the Dollar
Well it has finally happened. The bubble has burst and blood on the streets. I can can remember the entire ride. I guess about six years ago or so I was renting a house in Van Nuys California thinking about purchasing my first house. from the looking in the recycler news paper for (FSBO) fsbo ads. I saw houses listed for 180k 190k in my vicinity. right then and there those prices seemed ridiculous. especially for a 1200sq’ house in a barely decent part of town. After much floundering I decided to hold off. What an error that was. three years later those same houses were selling for 500k and I missed the boat. Lesson mastered how.
What happened to the housing market was inevitable. You see investors on wall street were basically looking for high interest returns on their invested money. They were able to get these high returns by buying mortgage backed securities from various lenders. as they simply were paying so well for these securities the lenders couldn’t make new loans fast enough to sell to the investors. In order to create more loans to sell they had to make it easy to qualify for interest levels. So now you have of those with poor credit buying houses with little or no money down. Throughout most of the country the value of real estate was rising so fast that there was never a problem with these individuals not making payments. If they were short on cash they would just refinance. Take out enough cash from their equity to buy some nice things and make payments yet another good 6 months. very, This went on for approximately 3 years. all the family was happy. The investors were getting a great return on their wealth. the lenders were making new loans charging points on new refinances. The consumers were using their company equity to buy BMW’s, Rolex gold watches and seadoos. A win/win/win legal right? misguided,
how are you affected when you lend someone with poor credit 400k and they run out of equity? A mortgage crisis that is what. The value of marketplace began to decline and the actual value of property began to be realized. So now people that truly could not afford to make their payments could no longer refinance and get cash to pay the bank. So the particular forecloses. problem was that it wasn’t just one family in trouble. We’re discussing millions of homes and hundreds of billions of dollars. That’s a situation.
So many people are in trouble with their loans that the banks cannot even keep up with all the foreclosures right now. That’s how you should buy real estate for pennies on the dollar. You seen banks are not in the industry of holding property. They are in the industry of lending money. Every additional piece of property that a bank holds is that much less money that they must lend out. This means a great chance of people that are motivated and want to be rich. I’m guessing which means you. you can use insane deals to be made right now. Banks are available properties for pennies on the dollar.
A great way to find real estate for pennies on the dollar is simply to go to a Real Estate office and tell them that you want bank owned properties to buy. they need to have a list for you that is several pages long with addresses and prices right on the list. that may Google “Bank owned rentals” and even “REO” Online and look through specific banks websites to see what they have available. Next you want to pick some of the properties that are within your budget. Copy the locations. Put in the property address and you can even examine on comparable sales in the area. This can provide an idea of what the property is actually worth. When you find a property that is worth a minimum of 3 times the list price available an offer. make perfectly sure that you visit the property with a contractor to see how much fix up the property will need before you actually close on your deal. You do not want to get stuck with too much rehab work as this will kill your deal.
At this point you may either hold the property with a renter or attempt to flip the property for a quick resale. My advice available in the would be to hold and rent it out.
this is just one way that you can buy real estate for pennies on the dollar. there’s a lot of more ways to make a ton of money in this market. I hope this information has helped and given you some ideas for wealth.
it is possible to it, you just need the tools.
I’m sure that you’ve all heard of the real estate bubble bursting. Turn in news reports or pick up any newspaper and you read about the banks being in trouble, Huge mortgage companies closing their doors or the need to get bailed out. out of this industry, I can tell you that there’s blood on the streets for sure. There are more foreclosures now than there was clearly since the “Great recession, That’s serious either. It kind of may appear to be doom and gloom, And i assume for some it is, But I’ll tell you exactly what is. “A HUGE program” To make more money then you ever dreamed about. and still helping people and having lots of fun.
There are two areas that I want to speak about in more detail.
the differences being that a foreclosure is when the bank has already taken back the property from the owner. A preforeclosure means they own started the process but, generally on the state there is a timeline and a process to get through before the foreclosure can actually take place.
I’ll be focusing on preforeclosures for now and get into foreclosure purchasing a later article.
Basically the situation is that a homeowner has gotten behind on their payments and they have no way to catch up. See in the past, A homeowner struggling could simply refinance, And take cash right out of the equity in their home. Many people were doing this twice yearly and using the money to live on. Home values in many areas were going up so fast until this was easy to do. The problem now would be values are falling, There is no more equity and so people find it difficult to make their payments. In a lot of states, when are about 90 days behind on payments, The bank files the truly amazing call a (jerk) Notice of arrears. Basically letting the world know that payments weren’t made and they intend on foreclosing.
Here’s annoyingly, many people. Banks don’t really want to do this. Banks are not in the flooring buisingess of owning real estate. Banks are in the flooring buisingess of lending money. Every property they own decreases the money that they have to lend. challenging foreclosures that are out there right now, Banks are eager to avoid the home foreclosure process. many times they are actually willing to take a lot less for the property than is owed.
for example: stuff Value as is = 200k
If you were to contact the bank and tell them that you were willing to offer 140K you have a good chance of getting them to accept that offer. I know it is true, Because i did it myself. after that you can either quickly sell the property to an investor say for 160k and make a quick 20k profit, Or can get you some easy financing (No appraisal of creditworthiness) Improve the house and sell it for 200k. and that is 40k profit, More than many individuals make in a year. Imagine if took action now just 1 deal per month. This is very possible and it’s done every time.
there happens to be some leg work involved in this. You need to know how to find these preforeclosures. You have to barter with the bank. You have to wasting get the proper paper work together but once you’ve done this a few times it really becomes easy. I’ll be talking more about different foreclosed strategies in later articles,
in the earlier articles I revealed to you several ways toe buy real estate for pennies on the dollar. Wholesaling a property simply is the entire process of selling your property quickly, almost definitely to another investor. The investor has the resources to improve the property and morph it into a rental or sell the property for a retail price.
It’s easy to find investors who have lot’s of money and are trying to find great deals. the most the deal, The simpler to find an investor. You can look in classified ads in the classified ads section where people lend money. Also ladies place ads like “Cash for your abode” for example. There is a fortune out there. You can look on websites online like craigslist as well.
Wholesaling is the fastest way I know to make a profit with the real estate that you are buying for pennies on the dollar. you must simply get a thorough understanding of the basics.