http://www.REIClub.com - Ever Consider Investing In Pre Foreclosures? Here's A Quick Video Teaching You More About Investing In Pre Foreclosure Real Estate... Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got a quick video on investing in pre foreclosures. 1) Minimize Holding Costs For novice investors worried about holding costs there is a big advantage to preforeclosures. When people default on their mortgage they have usually stopped making payments to the bank. So when negotiating with sellers, and the bank, right up until the point where you buy, no-one is making the payments. This gives you plenty of time to find a buyer, without monthly costs. 2) Deal With Very Motivated Sellers Sellers in preforeclosure are some of the most motivated sellers you will find. In many situations, the sellers world has been turned upside-down, they are about to lose their house, and their motivation is such that they just want out of the house and the bank off their back. You as the investor can assist them with this. 3) Room for Negotiation After becoming familiar with the issues that cause lenders to discount, larger and larger discounts can be achieved as you hone your negotiating skills. 4) You Are Not Qualifying, You Are Simply Taking Over Buying houses in preforeclosure allows you to simply take over the existing financing already in place. No qualifying needed. You can take title to the property in a land trust, begin making payments on the existing mortgage(s), and still get all the tax advantages, appreciation, depreciation without any of the risk of being personally liable for the mortgage and the property. 5) Buying Before The Auction If you have ever bid on properties at the county courthouse steps, then you are 100% aware of your competition. Unless you are incredibly cash liquid, you don't stand a chance. What's great about pre foreclosures, is that the investing process allows you to buy these properties BEFORE the auction, essentially eliminating your competition. 6) Create Large Amounts of Equity When a loan is in Default, the banks are desperate to get rid of them. So as long as they can recoup their losses, or even minimize them, they are open to investor negotiations. Many of the times, the property will be priced far higher than what the bank is actually willing to sell it for, but for the Savvy investor who has done their research, you can easily talk the price down. Buying during the pre foreclosure period is one of the best ways for anyone to get involved in real estate investing. With some specialized knowledge you can buy a house at a substantial discount and resell it retail picking up a five figure profit check in the process. Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing. https://www.youtube.com/watch?v=vhG3rEZX_qo

• published: 27 Mar 2014
• views: 345