Happy 4th of July To All!
How would one starting out with little money and no credit profit with foreclosures? What strategies and methods could be used to start a profitable foreclosure business?
Thanks,
Peter
IMO, foreclosures and new investors aren’t a realistic match. Without money or credit, what lender is going to take you seriously? Consider other investing strategies that don’t require cash or credit. Lease options are one way that I would recommend.
Then why are there soooo many investors saying, “no cash or credit needed, eliminate risk and you can proffit from this market in foreclosures”? We hear it all the time. There has to be truth to it…
Just because someone repeats something doesn’t mean it’s a true statement. I suspect the reason “soooo many investors” are saying that is because they have something to sell you.
People are making money by buying real estate or other property that is sold in foreclosure sales. In fact, there are many infomercials that suggest the purchase of seizures and auctions will result in instant cash. These requests must be taken with a grain of salt. Bids for foreclosed properties are often well attended and highly competitive.
This is a recent article that gives insight into the current state of foreclosure auctions (focused on Arizona) . Also mentions wholesalers, hard money lenders etc and some of the top players in the market . I thought it was very interesting compared to the run of the mill articles on the topic in mainstream press
http://abcnews.go.com/Business/wirestory?id=11080528&page=1
I can’t think of a way to start with little money and credit unless you find someone willing to partner with you…but you’ll have to convince them that you can help them make money. In this market I don’t think credit really helps as it seems the best deals are bought with cash.
[[[[…Then why are there soooo many investors saying,…]]]]
Apparently, you are confusing investors with the real estate gurus who are trying to sell expensive programs to wanna-be investors.
I know a lot of investors, and while they are saying that there is good money to be made with the REO, not one of them is saying that REO can be purchased with no money and no credit.
There is money to be made in this market, but you have to find a different way to do it. Banks do NOT sell houses to people who can not show where the money to pay for the house is coming from.
I do commercial and Residential Inspections in California.
All of the Inspections I have done are by Investors for the last 2 years with some minor exceptions.
1st you will need 20% down and a line of credit from your banker.
2nd Banks are getting very tight with loans and unless you have a great credit score AND a verifiable ability to pay, then it is unlikely that you will get a loan.
The foreclosure market is vast right now and you could participate IF you had the entry fee. That fee could be as little as $5,0000 but if you don’t have it then you can’t enter.
Honestly I’m in the same position No money No credit yet with 35 years of Real estate and Construction/Inspection experience.
First, find the closest Real Estate Investment club to you and begin participating. Even if it means driving 100 miles each way once a month.
Pick their brains and make friends and associates who can help you understand two things. Real Estate in General and your local market.
If you need more money to get your entry fee then ask what you can do for yor new found friends /Invvestors
Also save your money do not buy any programs unless one of your investor friends suggest that you do so… You’re going to need that money later on for investing.
Buying homes in foreclosure training is readily available on the web. These courses will also teach you about pre-foreclosure homes and how to approach the mortgage company to buy short sell. Buying that first foreclosed home may be somewhat intimidating but remember to take it slow so you understand the entire process as it moves forward.