How To Save Thousands Of Dollars Purchasing
Foreclosed And Distressed Properties.
Your Guide To Understanding the Foreclosure Process
Buying a foreclosure is quite easy. This Report has been written with the intent of demystifying foreclosures.
This report will give you an “insider’s view” of what is going on during the entire process.
So why am I writing this booklet? Because as Socrates once said, “All learning proceeds from the known, to
the unknown.” There is no easy way to find out about the things that are discussed in this report. I’ve been
researching and compiling information for over 17 years- and I have written this with the common person in
mind.
So what’s in it for me?
You might be able to take all that I share and go on with life without me. But I’d hope that you would believe
that I might be able to be of greater value to you. I make my living helping people buy properties at 15%-25%
below market. If I help you achieve what you want, the byproduct is that I will achieve what I want. The banks
pay all my fees, so my services are completely FREE to you. It’s a win-win situation. If you need help with
finding a foreclosed home or with the financing, then I'm here to represent you in the purchase!
A little bit about me. First I’m an entrepreneur, a real estate broker, mortgage consultant, and a college
professor. I like to think that we can make things easier for ourselves if we just stop for a moment, write down
and share with others what we’ve learned and how they could benefit from our experiences.
I’ve sold hundreds of homes to clients during my 17 year real estate career. If you are serious about
purchasing foreclosed or distressed properties…you have found the right person. And when this booklet has
served its purpose, please pass it on to someone who might benefit. This being said…enjoy.
Foreclosures In 15 Minutes
Investing in foreclosed and distressed homes is that different from investing in new or market-priced homes.
Many of the same rules apply and many guidelines remain constant. As with any type of investing, the point
at which you enter will determine how profitably you exit.
The single largest distinction between real estate investing and stocks, bonds, mutual funds or precious
metal is that real estate allows the investor the opportunity to have a more direct and immediate impact on
the investment vehicle—the foreclosure home—through rehab, paint, carpet, etc. This guide will demonstrate
on how to quickly make an assessment of a potential real estate investment. This guide should allow the
average investor to make a rapid and well-thought-out decision. An informed real estate investor will not
"lose out" because of third-party factors such as obtaining appraisals or contractors and repair people. An
aggressive, proactive approach by the real estate investor can reduce the time it takes to obtain foreclosure
homes.
A passive approach or an offhand attitude does not promote good opportunities. Remember, work WITH us
and get proactive! Now is a great time to buy.
How to Determine Equity
The old adage about the only the three words in business being "Location, Location, Location" is as true as
ever. In real estate, however, those three words are "Timing, Timing, Timing." The difference between what is
owed on a property and its market value is called equity. As a real estate investor, the goal is to buy the
foreclosure home for less than the full value and sell for market value in order to make a profit in the process.
The question is, at what point does caution balance against risk to make a profit on a foreclosure home? A
strong equity position is generally targeted at 15%-25%. An equity position less than 15%-25% can work for
rental investments, but for resale purposes 15%-25% is a solid figure.
In order to determine if 15%-25% can be achieved there are only two variables that need to be weighed in
the mind of an investor:
1. How much can I BUY the foreclosure home for?
2. How much can I SELL the foreclosure home for?
It is not difficult to obtain answers to these questions as long as the readily available data can be obtained
quickly and accurately distilled into usable information. By using the following guide and examining each
foreclosure home in terms of these three variables it should not take more than fifteen minutes to determine
if a particular foreclosure home is a wise investment.
How much can I get the foreclosure home for?
First, ask what your 2010Foreclosures.com real estate agent knows about the
particular foreclosure home:
1. How long has the home been on the market? (Not vacant, but available for sale.)
2. Ask for a Competitive Market Anylisis (CMA) for the property.
3. What does your real estate agent think about the home? (A good real estate agent is worth his/her weight
in gold.)
Second, look at the foreclosure home yourself.
Is it a "fixer upper" or is it "move-in ready?" The cost to make a foreclosure home ready to sell has to be
considered as part of the cost of buying a property. Many times lenders will offer a carpeting allowance or a
painting allowance.
Third, be sure that you are willing to own the foreclosure home for the
duration.
While it is certainly possible to get in and get out without a serious commitment of finances, be ready to own
the foreclosure home for at least 3 months.
Fourth, bid quickly and often.
Nothing is more frustrating than investing a lot of effort into a project for nothing. When considering
investments, do not hesitate and risk missing an opportunity. If a deal looks only “so-so” (only a 10% equity
position, for instance) BID LOW to achieve that 15%-25% potentiality. It could be a good rental, or even a
modest resale. And there is always the chance you might win the bid.
In investing, as in life, "he who hesitates is lost." After I help you submit a bid, start looking for the next
investment. You have to know what a “win” looks like- if you can achieve 90% of your objective…you win. You
will never find 100% of what you’re looking for in a home. Why? Because you can’t afford it. People who are
shopping for $500,000 homes really want the $600,000 home. People shopping in the $1,000,000 price
range really want the $1,250,000- it never stops…it’s human nature. Thus, your goal as an investor/home-
buyer is to find houses that are at least 15%-25% under market value. That’s a win.
How much can I sell the foreclosure home for?
As I just wrote, most investors are motivated to purchase with a minimum 15%-25% equity position. In order
to determine the true market value without ordering a full-blown appraisal (both time and financially
prohibitive), an investor must look at comparable sales. "Comps" are available from your real estate agent’s
Multiple Listing Service (MLS). Then consider the most recent sales that reflect the style and neighborhood
of the subject property and compare them to your investment home.
Foreclosure Tip #1 - The rewards are greatest when the real estate investor is a knowledgeable, pro-
active force in the process. Take an active roll in your foreclosure home investment.
Foreclosure Tip #2 - The figure for how many days on market (DOM) a property was available before
its eventual sale will be found on the MLS listing. Be sure to ask your real estate agent for these figures
specifically so that a determination can be made regarding the desirability of a particular neighborhood, style
of home, and other factors.
Foreclosure Tip #3 - Along with "sold" properties, take a look (in print) at other homes that are still
"available" or "withdrawn" from the market to determine the health of the market.
Foreclosure Tip #4 – Be sure that you are true to your investigation and do not allow passion or
trepidation to sway your decision-making either way. It is more important that you swing than it is that you hit
a home run. Bid often!
Foreclosure Tip #5 – If you plan on leasing the property, start advertising the home BEFORE the
close of escrow.
Foreclosure Home Buying Formulas
You’ve found the foreclosure home you’re looking for and are ready to purchase. Here are formulas to help
you prepare to move forward with the purchase of your foreclosure home:
Foreclosure Home Bidding Rules
1. If you are looking at a bank foreclosure, then the rules of bidding are fairly simple. Contact your real
estate agent at 2010Foreclosures.com and express your interest in the foreclosure home.
2. Have your mortgage loan officer draw up a pre-approval letter for no more than the price you plan to offer
on the subject foreclosure home. We have long relationships with top foreclosure lenders.
3. Have your 2010Foreclosures.com real estate agent send the bank a letter of intent for the foreclosure
home. The letter of intent differs from a full-blown contract in that it covers only the generalities of the
transfer of the foreclosure home (i.e., price, financing, proposed closing date, etc.).
Once the bank receives the letter of intent for the foreclosure home from your real estate agent, be prepared
to wait at least a week from this point, as banks work slowly and cautiously.
How Much To Bid For the Foreclosure Home
Obviously, one of the main considerations when thinking about placing a bid on a foreclosure home is how
much to bid and, moreover, how to bid just enough to win the bid for the foreclosure property without
overpaying. Unlike HUD or the Veterans Administration (VA), which are both government agencies, banks
determine the price they are willing to accept for a foreclosure home on a per property basis.
As mentioned before, your 2010Foreclosures.com real estate agent will pull the tax records in order to
determine the amount mortgaged prior to the foreclosure. Do not try to bid less than the bank owes on a
foreclosure home until it has been on the market for two to three months.
Do not be afraid of bidding below the mortgaged amount for the foreclosure home. A discount of 15-25% is
the most you can expect, and the bank may still not be able to be this flexible regarding sales price. Keep in
mind that 15%-25% discount below the existing mortgage would represent and 30%-40% discount from
actual market value!
Sometimes a property will come onto the market at an already highly discounted asking price...if you do not
offer full price for the foreclosure home, be prepared to lose the foreclosure property to another homebuyer.
First Time Homebuyer Advantages
The advantages of being a foreclosure/distressed homebuyer are plentiful and can be utilized if you know
and understand your options and the ways in which you can save money.
Get Foreclosures Emailed To You Daily For FREE- Bid Early on Foreclosures-
Beat Others Buyers To The Best Deals
2010Foreclosures.com will send you Automatic Foreclosure Updates. You will receive these FREE priority-
daily-emails as foreclosures come onto the market. Take advantage by getting out to a foreclosure home
that you might be interested in quickly and either moving on it or moving away from it.
Foreclosed And Distressed Properties.
Your Guide To Understanding the Foreclosure Process
Buying a foreclosure is quite easy. This Report has been written with the intent of demystifying foreclosures.
This report will give you an “insider’s view” of what is going on during the entire process.
So why am I writing this booklet? Because as Socrates once said, “All learning proceeds from the known, to
the unknown.” There is no easy way to find out about the things that are discussed in this report. I’ve been
researching and compiling information for over 17 years- and I have written this with the common person in
mind.
So what’s in it for me?
You might be able to take all that I share and go on with life without me. But I’d hope that you would believe
that I might be able to be of greater value to you. I make my living helping people buy properties at 15%-25%
below market. If I help you achieve what you want, the byproduct is that I will achieve what I want. The banks
pay all my fees, so my services are completely FREE to you. It’s a win-win situation. If you need help with
finding a foreclosed home or with the financing, then I'm here to represent you in the purchase!
A little bit about me. First I’m an entrepreneur, a real estate broker, mortgage consultant, and a college
professor. I like to think that we can make things easier for ourselves if we just stop for a moment, write down
and share with others what we’ve learned and how they could benefit from our experiences.
I’ve sold hundreds of homes to clients during my 17 year real estate career. If you are serious about
purchasing foreclosed or distressed properties…you have found the right person. And when this booklet has
served its purpose, please pass it on to someone who might benefit. This being said…enjoy.
Foreclosures In 15 Minutes
Investing in foreclosed and distressed homes is that different from investing in new or market-priced homes.
Many of the same rules apply and many guidelines remain constant. As with any type of investing, the point
at which you enter will determine how profitably you exit.
The single largest distinction between real estate investing and stocks, bonds, mutual funds or precious
metal is that real estate allows the investor the opportunity to have a more direct and immediate impact on
the investment vehicle—the foreclosure home—through rehab, paint, carpet, etc. This guide will demonstrate
on how to quickly make an assessment of a potential real estate investment. This guide should allow the
average investor to make a rapid and well-thought-out decision. An informed real estate investor will not
"lose out" because of third-party factors such as obtaining appraisals or contractors and repair people. An
aggressive, proactive approach by the real estate investor can reduce the time it takes to obtain foreclosure
homes.
A passive approach or an offhand attitude does not promote good opportunities. Remember, work WITH us
and get proactive! Now is a great time to buy.
How to Determine Equity
The old adage about the only the three words in business being "Location, Location, Location" is as true as
ever. In real estate, however, those three words are "Timing, Timing, Timing." The difference between what is
owed on a property and its market value is called equity. As a real estate investor, the goal is to buy the
foreclosure home for less than the full value and sell for market value in order to make a profit in the process.
The question is, at what point does caution balance against risk to make a profit on a foreclosure home? A
strong equity position is generally targeted at 15%-25%. An equity position less than 15%-25% can work for
rental investments, but for resale purposes 15%-25% is a solid figure.
In order to determine if 15%-25% can be achieved there are only two variables that need to be weighed in
the mind of an investor:
1. How much can I BUY the foreclosure home for?
2. How much can I SELL the foreclosure home for?
It is not difficult to obtain answers to these questions as long as the readily available data can be obtained
quickly and accurately distilled into usable information. By using the following guide and examining each
foreclosure home in terms of these three variables it should not take more than fifteen minutes to determine
if a particular foreclosure home is a wise investment.
How much can I get the foreclosure home for?
First, ask what your 2010Foreclosures.com real estate agent knows about the
particular foreclosure home:
1. How long has the home been on the market? (Not vacant, but available for sale.)
2. Ask for a Competitive Market Anylisis (CMA) for the property.
3. What does your real estate agent think about the home? (A good real estate agent is worth his/her weight
in gold.)
Second, look at the foreclosure home yourself.
Is it a "fixer upper" or is it "move-in ready?" The cost to make a foreclosure home ready to sell has to be
considered as part of the cost of buying a property. Many times lenders will offer a carpeting allowance or a
painting allowance.
Third, be sure that you are willing to own the foreclosure home for the
duration.
While it is certainly possible to get in and get out without a serious commitment of finances, be ready to own
the foreclosure home for at least 3 months.
Fourth, bid quickly and often.
Nothing is more frustrating than investing a lot of effort into a project for nothing. When considering
investments, do not hesitate and risk missing an opportunity. If a deal looks only “so-so” (only a 10% equity
position, for instance) BID LOW to achieve that 15%-25% potentiality. It could be a good rental, or even a
modest resale. And there is always the chance you might win the bid.
In investing, as in life, "he who hesitates is lost." After I help you submit a bid, start looking for the next
investment. You have to know what a “win” looks like- if you can achieve 90% of your objective…you win. You
will never find 100% of what you’re looking for in a home. Why? Because you can’t afford it. People who are
shopping for $500,000 homes really want the $600,000 home. People shopping in the $1,000,000 price
range really want the $1,250,000- it never stops…it’s human nature. Thus, your goal as an investor/home-
buyer is to find houses that are at least 15%-25% under market value. That’s a win.
How much can I sell the foreclosure home for?
As I just wrote, most investors are motivated to purchase with a minimum 15%-25% equity position. In order
to determine the true market value without ordering a full-blown appraisal (both time and financially
prohibitive), an investor must look at comparable sales. "Comps" are available from your real estate agent’s
Multiple Listing Service (MLS). Then consider the most recent sales that reflect the style and neighborhood
of the subject property and compare them to your investment home.
Foreclosure Tip #1 - The rewards are greatest when the real estate investor is a knowledgeable, pro-
active force in the process. Take an active roll in your foreclosure home investment.
Foreclosure Tip #2 - The figure for how many days on market (DOM) a property was available before
its eventual sale will be found on the MLS listing. Be sure to ask your real estate agent for these figures
specifically so that a determination can be made regarding the desirability of a particular neighborhood, style
of home, and other factors.
Foreclosure Tip #3 - Along with "sold" properties, take a look (in print) at other homes that are still
"available" or "withdrawn" from the market to determine the health of the market.
Foreclosure Tip #4 – Be sure that you are true to your investigation and do not allow passion or
trepidation to sway your decision-making either way. It is more important that you swing than it is that you hit
a home run. Bid often!
Foreclosure Tip #5 – If you plan on leasing the property, start advertising the home BEFORE the
close of escrow.
Foreclosure Home Buying Formulas
You’ve found the foreclosure home you’re looking for and are ready to purchase. Here are formulas to help
you prepare to move forward with the purchase of your foreclosure home:
Foreclosure Home Bidding Rules
1. If you are looking at a bank foreclosure, then the rules of bidding are fairly simple. Contact your real
estate agent at 2010Foreclosures.com and express your interest in the foreclosure home.
2. Have your mortgage loan officer draw up a pre-approval letter for no more than the price you plan to offer
on the subject foreclosure home. We have long relationships with top foreclosure lenders.
3. Have your 2010Foreclosures.com real estate agent send the bank a letter of intent for the foreclosure
home. The letter of intent differs from a full-blown contract in that it covers only the generalities of the
transfer of the foreclosure home (i.e., price, financing, proposed closing date, etc.).
Once the bank receives the letter of intent for the foreclosure home from your real estate agent, be prepared
to wait at least a week from this point, as banks work slowly and cautiously.
How Much To Bid For the Foreclosure Home
Obviously, one of the main considerations when thinking about placing a bid on a foreclosure home is how
much to bid and, moreover, how to bid just enough to win the bid for the foreclosure property without
overpaying. Unlike HUD or the Veterans Administration (VA), which are both government agencies, banks
determine the price they are willing to accept for a foreclosure home on a per property basis.
As mentioned before, your 2010Foreclosures.com real estate agent will pull the tax records in order to
determine the amount mortgaged prior to the foreclosure. Do not try to bid less than the bank owes on a
foreclosure home until it has been on the market for two to three months.
Do not be afraid of bidding below the mortgaged amount for the foreclosure home. A discount of 15-25% is
the most you can expect, and the bank may still not be able to be this flexible regarding sales price. Keep in
mind that 15%-25% discount below the existing mortgage would represent and 30%-40% discount from
actual market value!
Sometimes a property will come onto the market at an already highly discounted asking price...if you do not
offer full price for the foreclosure home, be prepared to lose the foreclosure property to another homebuyer.
First Time Homebuyer Advantages
The advantages of being a foreclosure/distressed homebuyer are plentiful and can be utilized if you know
and understand your options and the ways in which you can save money.
Get Foreclosures Emailed To You Daily For FREE- Bid Early on Foreclosures-
Beat Others Buyers To The Best Deals
2010Foreclosures.com will send you Automatic Foreclosure Updates. You will receive these FREE priority-
daily-emails as foreclosures come onto the market. Take advantage by getting out to a foreclosure home
that you might be interested in quickly and either moving on it or moving away from it.
Foreclosures...How To
 |  |  |  |
| Copyright 2011 Rancho Coastal Properties Inc. All rights reserved. CA LIC #01836634 |
