So it’s always a question of do you sacrifice time to make more money…or do you sacrifice making money to have more time?
It’s really a personal choice. However, as a real estate investor, with a little thought, you can have your cake and eat it to. Let’s think about it for a minute. Across the country, right now, there are more great deals on real estate than there have been for years.
Sellers want to and need to sell, banks have too much inventory and want out, investors from the boom years (2002 to 2005) have found themselves in a bit of hot water wondering where the appreciation has gone. All of this leads to motivation to sell real estate a significant discounts. You must then choose how will you go about finding those sellers ready to give you a great deal.
Let’s take the situation of foreclosure in our example now.
Certainly foreclosure is a situation that can cause motivation and for the savvy investor an opportunity to help while you profit. Who will you help? That depends on where in the foreclosure process to focus your time.
Let’s just really over-simplify this whole process and say that Foreclosure is a point in time. It’s the point in time that the current owner (the homeowner) transfers their ownership to the new owner (the bank).
The period of time before the foreclosure is called Pre-foreclosure and the period of time after the foreclosure is called Post-foreclosure or REO.
Now, thinking from a Time versus Money angle, where is your opportunity to maximize both? It really depends on you.
As a real estate investor you can choose to work Pre-foreclosure, Post-foreclosure or both. Here are the keys:
Pre-foreclosure: You will work directly with distressed homeowners, you will follow state consumer protection laws, you will negotiate short-sales with the lender and you will buy at a discount.
Post-foreclosure (REO): You will work directly with a real estate agent specializing in distressed properties, you will weed through mounds of potential deals to find the best, you will make all cash offers with very quick closings and you will buy at a discount.
Build your system to accomplish your real estate investing goals based on how the ‘system’ works and you will succeed.
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June 6th, 2009 at 11:31 am
As a real estate Newbie, I am always searching online for articles that can help me. Thank you