1.  Motivation, Motivation, Motivation

When it comes to investing in real estate, we’ve all been told how important selecting a good location is when buying investment property.How many times have we all heard, “It’s all about the location?  Location, location, location.”

Well, I’m here to tell you it’s not about location, its about motivation.So say after me, “motivation, motivation, motivation.”

No matter your experience level in income property investing, the fundamentals are the same for all of us.

Buy the best available property and the best price. 

How do great real estate investors find the best deals in town over and over again? I thought you would never ask.

In order for the savvy pre-foreclosure investor to buy investment property at a deep discount regularly, he or she must look for people who have compelling reasons to sell.  What do I mean by compelling?

These homeowners have to sell the house in order to solve their problem.

So instead of focusing on great property locations, start searching out sellers with big problems to solve? Help the seller first, and as a result, you end up with the investment property at a very good price.

What kind of seller situations do experienced income property investors look for?

1. Divorce

Divorce is a major factor in our society and sadly affects many of us.This situation causes many homeowners to fall behind on the mortgage payment.A big mistake married couples make (over and over again) is to buy a house based on both incomes.So in this case, both incomes are needed to pay the big mortgage.Guess what happens when the income is split in half?

2. Unexpected Job Loss

Today job loss and unemployment play big roles roles in the real estate investing market.So when someone loses their main source of income, everything else is affected.The house is usually the first item on the list.When the money stops, foreclosure usually follows.

3. Extended illness or sickness

It’s never good for anybody involved for someone to get sick like this.It’s never good when the primary income earner comes down with an extended illness.  Cancer, heart disease, and a vast array of disabling diseases can hit at any age.If the seller doesn’t have disability insurance, he or she cannot pay the bills
Any extra money would quickly be eated up by the medical bills.

4. Job Transfer

Sometimes that great job opportunity comes with a price.For example, Bob who now lives in Houston, Texas finally gets that big break.  It’s a job promotion that requires him to move to Atlanta.Bob accepts the new position and moves to Georgia without first selling his house in Houston.

Bob buying a new house in Atlanta is a really big mistake.  The two payments crush Bob and this so called “new opportunity” suddenly sinks him.Poor little Bobby.

5. Drug/ Alcohol Addiction

When you abuse drugs and/or alcohol, you’re not normally very productive.When someone let’s this sickness in, it’s all down hill from there. 

When buying investment properites, search out these particular seller situations.  When a seller fails to solve the problem with the house or apartment building, come to their rescue and help them out of their situation.You will be rewarded, but only after helping others first.

Look for these seller situations in your future real estate investing efforts and you will be handsomely rewarded.  I promise.

With more foreclosures now than ever before, America’s weak real estate market seems to set new dismal records each month. However, opportunistic real estate investment professionals are turning the recession into great profits with a bit of creativity.

This new opportunity – known as ‘Bulk REO Investing’ – is so huge it’s captured attention from wealthy investors and private investment funds alike.

The basis of the Bulk REO business is foreclosures, so let’s analyze the foreclosure process now.

Understanding the notion of Bulk REO’s requires understanding of the foreclosure process.

As a home owner misses a payment or two, the lender sends the predictable barage of threatening letters and warnings. The official foreclosure proceedings begin subsequently, as directed by the lender. From that time through public auction is called ‘preforeclosure’.

To complete the foreclosure process, the property is auction to the public. If the property is not purchased at auction, ownership reverts to the original lender. The property then receives the designation of being an ‘REO’ or the more formal name, ‘Real Estate Owned’.

Local real estate agents are usually used to resale REO properties at retail price to the general public. But more and more, lenders are selling their REO properties for a greatly reduced price. But the price of receiving such great pricing is the need to purchase multiple REO properties (a ‘package’) rather than individual properties.

These REO packages represent the potential to acquire huge amounts of equity for savvy real estate investors. The most successful Bulk REO Investors will have a well-respected source of funding for their transactions. Some sources of funding for these transactions are: personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Salvatore Buscemi of Dandrew Capital Partners, a hedge fund in New York.

There are more foreclosures in the United States right now than we have ever experienced before. However, opportunistic real estate investment professionals are turning the recession into great profits with a bit of creativity.

This new opportunity – known as ‘Bulk REO Investing’ – is so huge it’s captured attention from wealthy investors and private investment funds alike.

Foreclosures are at the heart of the Bulk REO business, so let’s consider the foreclosure process.

To understand investing in Bulk REO, you have to understand the foreclosure process.

As a borrower becomes increasingly behind in his mortgage, the lender regularly calls and writes the borrower with default warnings and threats. After a certain period, the lender will then formally begin foreclosure proceedings. ‘Pre foreclosure’ is the name given to the time between implementation of the foreclosure proceedings and the public auction.

When a defaulted property is placed up for auction, the foreclosure process is completed. If the property is not purchased at auction, ownership reverts to the original lender. This property is then considered to be ‘Real Estate Owned’ by the lender, also known as an ‘REO’ property.

Lenders have no interest in owning property, and thus usually opt to list their REO properties with a local real estate broker in hopes of a retail sale. Yet with increasing frequency, REO properties are being sold for pennies or dimes on the dollar. Lenders are willing to do so in exchange for the buyer’s agreement to purchase a ‘package’ of REO’s rather than a single property.

The recession in the United States has yielded huge profits to real estate investors prepared to take advantage. Bulk REO Investors are most successful when they have a well-established source of funding for their REO packages. There are many sources of funding for these transasactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and private investors. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Sal Buscemi of Dandrew Capital Partners, a hedge fund in New York.