I’m a new investor and want to no what are some strategies to making a quick sale with foreclosures. I see people having success and I have read about it and now I want to learn how to do the same. I’m open to any and all advice.
JonG
There are several levels of foreclosure in which one can invest or otherwise make money. The first of course is the initial foreclosure situation in which a short sale is the most common. This is when homeowners are either already in foreclosure or they soon will be. The average short sale process is a lengthy one. I have had some take as long as 10 months.
If not a short sale then you can try purchasing notes. This method requires a lot of money. Most people do not have the kind of money banks require to deal with note purchasing. So generally speaking, this method is not for beginners.
After the property successfully gets through the foreclosure process and is purchased back at auction by the bank, it becomes a REO. REO’s are the second level of the foreclosure process. This is where you purchase the properties to either resell or put renters in and hold as investment properties. This method also requires cash/capital/money/credit/etc. to do the deals.
Of these three methods the short sale method is most desirable to most beginners simply because it require the least amount of money to get started. For individuals with the financial capability, the REO method is most desirable.
Me personally, i prefer the REO aspect. It gives me more control, and if I can’t find a buyer, I still have an asset. In comparison, the short sale method requires a lot of time and effort. Should you not find a buyer then everything is lost. Your time and effort is not a liquidable asset.
GooD LucK! :beer
Thanks for the information. How will the fact that me being credit challenged factor into the process. Will it hurt me or help me. Also, I think that foreclosure quick sales are just right for me starting out.
JonG5454
Short sale is the way to go.