Opportunity Comes In All Shapes and Sizes

0 Comments
Topics: Foreclosures


     Changes that are going to be bad for a lot of people are going to be good for those who can exploit them. I must confess to being of two minds. On the one hand, I’d be blissfully happy if the current real estate party never came to an end. It has created fortunes for millions of people who would never have had any other way to rise into upper middle class comfort. Indeed, I’ll lament the vanishing of the extremely good times we’ve all enjoyed these past few years. On the other hand, tight credit promises a cornucopia of opportunity for those who buy foreclosures.

Continue reading “Opportunity Comes In All Shapes and Sizes”

Pre-Foreclosure Opportunities

0 Comments
Topics: Foreclosures


"Pre-foreclosure" is one of those buzz words that get passed around in real estate investor clubs as something loaded with profit potential that offers a sure, easy, fast path to wealth and riches.   No doubt there are profits to be gleaned from contacting people who are faced with foreclosure and who will surrender all or part of their equity in return for debt relief, payment relief, or shelter; but there's many a slip betwixt cup and lip.

Continue reading “Pre-Foreclosure Opportunities”

Making Money Buying Defaulted Junior Liens

0 Comments
Topics: Foreclosures


A house was being foreclosed by a second mortgage holder. I was contacted by a person who had bought a house with seller financing. The seller carried back an “interest only” third mortgage with a balloon payment behind two loans that he had placed on it when he bought it. The existing second mortgage lien required a balloon payment a month prior to a separate balloon payment that would be due on the third mortgage. The buyer took title subject to the existing level payment, self-amortizing first mortgage.

Continue reading “Making Money Buying Defaulted Junior Liens”

Finding Profits in Preforeclosed Properties

0 Comments
Topics: Foreclosures


How do you find the right properties without Brokers? Cold-canvassing in the neighborhoods, putting out flyers door-to-door, running ads, paying "bird dogs", direct mail, and contacting lenders all helps. Looking for people to whom "creative finance" boiled down to placing 2nd and 3rd.loans against properties. These virtually guarantee feasible properties In foreclosure situations.

Continue reading “Finding Profits in Preforeclosed Properties”

Building Wealth By Controlling Equity and Income

0 Comments
Topics: Foreclosures


In the foreclosure business, profit is measured between the amount owed on a property and the net sale proceeds after all expenses. Often, this is confused with "equity". Equity is a lot like sex appeal. The owner may be the only one around who believes he has any! People seem to get a real kick out of constructing personal Net Worth Statements that are based upon some fanciful idea of both high retail market value for their house, and their best guestimate of what will be left after they sell their property. They term this their "equity". Unfortunately, there are huge gaps between this equity and what they'll get after sale in the foreclosure marketplace.

Continue reading “Building Wealth By Controlling Equity and Income”

Buying the Right Property for the Right Reasons

0 Comments
Topics: Foreclosures


Whenever you buy from owners in areas with wide spread distress, it's likely that you'll have trouble finding tenants who can pay rents high enough to cover costs. If they'd been plentiful, doesn't if stand to reason that the former owners would have moved out and rented rather than to lose their homes? Beware of buying, where EVERY ONE is being, foreclosed. You'll lose the property too. And be careful about justifying a negative cash flow with a phantom equity that exists only in a larcenous mind. It's more prudent to only buy those properties which have reasonable payments and which are in distress more because of the individual problems of their owner than as a symptom of wide spread economic malaise.

Continue reading “Buying the Right Property for the Right Reasons”

Plan Your Work, Then Work Your Plan

0 Comments
Topics: Foreclosures


For some reason or other, people who buy and sell houses like to call themselves INVESTORS. In many areas they have banded together in "Investment Clubs" that meet regularly. It's difficult to find many people at these meetings who earn six-figure annual incomes. This may be because they don't comprehend that buying and selling houses isn't an investment; it's a business.

Continue reading “Plan Your Work, Then Work Your Plan”

You Don't Have to Spend a Fortune to Learn How to Make One!

Join the CashFlowDepot Community today and learn how to make cash and cash flow with real estate.