So you want to buy pre-foreclosures? So many investors ask me about
this method of finding deals. Here's my 30-second seminar on the
topic. If you're going to buy PRE-foreclosures--after the seller is
behind on their payments, but before the lender's auction date-then
there are some pros and cons to consider.
Private Equity Fund Of Funds Pros:
. There is a good possibility of buying the house subject-to the
loan from a very motivated seller who just wants out.
. Information on the homeowners in pre-foreclosure is public
information, and readily accessible (although this can also be a
con - see below)
. Foreclosures across the country are at an all time high.
by Dave Porter A syndicate of seven private equity investment banking firms have agreed to buy SunGard Data Systems for $11.3 billion, the largest buyout of a public company since 1989. If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. Membership is free. Print This Page March 28, 2005 (AXcess News) A syndicate of seven private equity investment banking firms have agreed to buy SunGard Data Systems ( SDS) for $11.3 billion, the largest buyout of a public company since 1989.
Curve Equity Exposed Fund Cons:
. Depending on your state, you either have so little time before
the auction date that it is almost impossible to contact the
homeowners, obtain signed contracts, run title, obtain funding, and
close - or - the auction is so far away that the homeowners are not
even motivated by the threat of foreclosure. The truth is that they
can probably live in the house rent free for a year or more.
. Most pre-foreclosure homeowners are in denial about their
situation and/or angry that their private situation has become
public knowledge.
. Everyone and their mother contacts these sellers once they hit
the pre-foreclosure list. It's not just investors, but also real
estate agents, bankruptcy attorneys, and forbearance
consultants.
The amount of debt versus underlying asset value. This leads to the term "Leveraged Buy Out" (LBO) where debt is used to buy a company. This strategy is popular with Private Equity houses, splitting commentators into two separate camps. Supporters believe it forces the object of the LBO to behave more efficiently to pay off its debt, thus maximising investor value. sayers believe it is capitalism at its worst leading to asset stripping, like heads of the Private Equity houses.
Equity Income Funds If you want to focus on pre-foreclosures as a method for finding
deals, then you want to stand out from the others. You might want
to try unusual mailings. Have you ever received an envelope with a
pen or something bulky inside? Could you resist opening it? No, you
had to se what was inside. There are companies that specialize in
these type of inexpensive premiums to place in your direct mail
pieces. They even have unusual mailing containers (trash can,
coconut, stick of dynamite) that make your advertisement stand out.
The trick is to get your marketing piece read, remembered, and
acted upon. The other thing to remember is that it takes multiple
impressions - so you have to mail numerous times: 5-7 before you'll
even get noticed. Consistency is critical. Don't give up.
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Capital Casebook Equity Develop your plan for contacting the homeowners on a regular and
consistent basis. If there is a long foreclosure process in your
state, then you may want to consider one initial mailing when they
hit the list, then only one more contact each month until your are
closer to the auction date at which time you may step it up to once
a week. Remember that most of your competition will stop contacting
these homeowners long before the auction. The sellers who wait
until the last minute are usually faced with far fewer options -
that's a great time for you to contact them.
However, you are not required to use a real estate broker or salesperson to buy preforeclosures, auction properties, and most REOs.
Private Investment In Public When you do speak to these homeowners, remember to be
sympathetic, but not condescending. Act as a consultant helping
them to find a viable alternative to destroying their credit and
their future chances at a new mortgage. What they want more than
anything is relief and respect. Provide both, and you have a great
chance at a deal.
Accordingly, a property owner with a home in preforeclosure can be a motivated seller. Sometimes, these homeowners just want to get money for the balance left on the loan to get the lenders off their backs. That's the reason you could save thousands on a house in preforeclosure and receive instant equity in the property.
Equity Mutual Funds
Best of Success & Abundance,
Birmingham Contact Equity Lou Castillo
Private Equity Investment Firm Yours Free: 6 Full Months Of Specialized Real Estate Investing
Strategies - Delivered To You By e-Mail, Audio and Teleseminar -
All At No Cost To You...
Go here right now--> http://www.freerealestatestrategies.com
Complying Deal Equity Funds Lou Castillo has been successfully investing in real estate
since the early '90's, and now shares his vast experience with
investors around the country. Unlike many of the speakers and
mentors in real estate, Lou has both an undergraduate and a
Master's Degree in Business and Marketing, and for 12 years he
worked managing a 50 million dollar business for American
Express.
Equity Msn Private Wyoming He was on his way up the corporate ladder until he recognized
that real estate offered a greater opportunity for financial
freedom, and for the lifestyle he desired. Using his powerful
formulas Lou was able to retire from his corporate job at age 37
and follow his passion - his first love - which is investing in
real estate.
American Equity Investment Lou has developed proven systems that create massive wealth
through real estate investing. He has authored more than 7 books
and courses on the subject focusing on the implementation of his
techniques. His latest development 'The Investor Riches System' has
been helping investors world wide achieve financial freedom through
real estate. For more information, go to
http://www.freerealestatestrategies.com If you wish to talk to Lou
you can e-mail him at Lou@InvestorRiches.com
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