Magnetic Real Estate Leads
Build a Successful and Responsible Real Estate Investment Business, D.C. Fawcett Style, By Understanding Your Foreclosure Laws
Aug 31 2010
Posted by Greg Reed as Prospecting
A big part of responsible pursuit of foreclosures for your real estate business has to do with foreclosure laws. Every state has its own foreclosure procedures and also its own foreclosure laws that can and do affect what you are able to do as an investor. I understand this all too well in my own business and respect that we, as investors, need to be adaptable when it comes to foreclosure laws.
From how to properly approach a seller to what promises or suggestions can be made to what forms or contracts you use, foreclosure laws are very relevant to the modern real estate investor. It’s important to recognize that foreclosure laws have changed in many areas and , in many cases, very recently, due to the abundance of foreclosures now on the market. Foreclosure laws are in place to prevent consumers from being taken advantage of and you simply must know the rules in your area to be most successful.
Basically, there are two ways you can run your foreclosure investing business. You can thumb your nose at the foreclosure laws in your state and take a chance that you might get into trouble later. The better alternative is to learn the foreclosure laws in your area, and build your business around these foreclosure laws so you know that your business is operating both properly and within the guidelines of the law. This not only makes your business inherently more ethical, but also less prone to legal challenges.
I assure you that there are virtually unlimited deals to be found within the realm of real estate foreclosures. You simply need to know that there are certain rules to follow and these rules are governed by the foreclosure laws in your state. Whether you’re just curious how to make money with foreclosures or really dive in and engage in serious investing, foreclosure laws can and will affect you and you thus need to be aware of them.
In today’s market, foreclosures as much as part of real estate investing as any other part of the business. Make sure you have an attorney on your side who can help keep you up to speed with current foreclosure laws and how these foreclosure laws change, because they often do. Awareness of foreclosure laws in your area is a key part of your commitment to real estate training so take it seriously. I wish you the very best in success in real estate foreclosure investing and in business as a whole.
D.C. Fawcett learned the real estate business from the ground up and now operates a world class investing business out of the Tampa, FL market. His training programs specialize in showing real estate investors how to achieve success in the real estate foreclosure market and have gained broad appeal around the country. You can learn more about D.C. Fawcett’s training philosophy and his programs by visiting www.dcfawcett.com.
The author is a business building coach to The Foreclosure Industry. To Get a Free Foreclosure and short sale Course including how to buy REO Properties, Go here DC Fawcett
Damien Cooley, Josh Phegan and James Tostevin are all industry leaders in their own right. Better yourself through listening to the market leaders.
The real estate market may have its ups and downs, but successfully getting a bargain takes experience, finesse and sensibility. Of course, it never hurts to learn a few new tricks.
Low Real Estate Offers
Low offers are one way to get cheaper property. However, be realistic in what price you offer. Most people are not going to say no to offers that are 15 to 20 below the asking price.
Sellers who are in a hurry to sell are more likely to accept your bid. Find out whether the seller needs to relocate for a new job or has to come up with money quickly.
The other method is not to limit yourself. Make plenty of offers on lots of homes and hope that one will accept it. In order to turn the property back into a profit, you need to aim low, since transaction costs are around 10 percent of the total. The drawback to this is that you will appear pushy and unreasonable to the real estate agent and sellers. If you do not think the homeowners are willing to give up the house for that price, move on.
Value More Than The House Value
When the market is hot, prices are through the roof. Unless you somehow improve the property, the median price is what you will most likely get. If there is an incentive to fix up a part of the house, such as repainting, and the cost of replacement is less than the price the buyer is willing to pay, then go through with the improvements. Otherwise, the property is not the only thing the buyer purchases.
If you intend on buying a fixer upper in order to turn a profit, start at the end (your sale price once the house is finished) and work backwards. What is the total cost for repairing the property? Subtract all the costs and see how large the profit is. This will give you an idea of how high you can bid.
When looking at the value of the house, calculate any additional costs that will arise during the buying process. This includes the price, any repairs the house will need in the future, realtor fees, utilities, taxes, selling costs and advertising costs. You do not want to come up short and realize your profit is much smaller than anticipated.
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