In previous blog entries, I took the mystery out of contracts. I showed you how easy they are to fill out, and how you can use them to work for you, as well as protect you.
Today, I’m going to look at one of the big worries that new real estate investors have: “What if I get stuck with a property I cannot get rid of?” I want to remove all of the fears that may be holding you back from the very real profits you can make from foreclosure and probate investing!
In previous blog entries, I’ve talked about how easy it is to find homeowners in preforeclosure, as well as heirs to a probate property – both of whom tend to be anxious to sell.
I’ve also told you that you can often get such properties at very low prices, and then turn around and sell them at full market value for a good profit.
If you are new to probate and preforeclosure investing, I can’t blame you for thinking, “But what if I get stuck with a property? What if I can’t find a buyer?”
You may have imagined this scenario: There you are… you’ve just struck a great deal with an eager-to-sell homeowner who has found himself facing foreclosure. He has a lot of equity in the house, and you can see the potential for selling it at a huge profit after you acquire it. You sign the papers, get a loan from a small local bank, make some repairs and pretty it up a little, and put it on the market. There it sits for three months, six months…will it ever sell? What do you do now?
There are two ways you can avoid being stuck with a foreclosure or probate home (or any other house you are trying to sell). Make your probate home highly saleable, or flip it to an investor.
Let’s talk about the first option, making the property highly saleable. This involves two main factors: selling the property at the right price, and making sure it is in good condition and shows nicely.
Let’s imagine you’ve just acquired a preforeclosure home. If you did your homework, you acquired the property at a deep discount. This means that even if you have to do some repairs, you’ll be able to sell the property at a price that’s attractive to potential buyers, and still make a profit.
Make the property as attractive as possible. Don’t forget that curb appeal (how the house looks to people as they drive by) is a huge factor. Many
people won’t want to go inside and look at a property if it doesn’t look good from the street.
On the inside, make sure the house has a fresh coat of paint, is clean, and is in good repair. Make sure all of the windows are clean! My course gives you all the specifics on what appeals to potential buyers. It even tells you, step-by-step, what to watch for as you inspect the condition of a house. For complete details, go to http://propertyforeclosure.com/details.html.
Even in today’s slow real estate market, an attractive home at a lower-than-retail price is likely to sell.
But maybe you’re brand new to real estate investing and have very little money, or just have no interest in fixing up a probate or preforeclosure home? Or maybe you’re still a little afraid of getting stuck with even a cream puff of a house.
For newbies, the absolute best way to ensure quick turnover is by flipping contracts (also know as flipping houses). When you flip a real estate contract, you simply sell your contract to another investor, who then has the right to purchase the property at the price agreed upon in the contract.
“Ok, Lance,” you might be saying. “But don’t I still run the risk of being stuck with the property if I don’t have an investor?”
I have a solution to that, too: You line up your investors in advance. There are many ways to find investors who are ready and able to pay you to find good property deals — whether those deals are preforeclosure homes or probate homes. If you decide to invest in my probate and preforeclosure courses, you will learn, step-by-step, not only how to find investors, but how to make sure they’re qualified with the money, and that they’re sincere. Check it out at http://propertyforeclosure.com/faqs.html.
Here’s an example of how flipping to an investor can work: You have found an investor who would like to purchase the property for 70% of its fair market value. That means he would be willing to pay $140,000 for the property. Since your contract with the homeowner is for $130,000 and the investor is paying you $140,000, you pocket the difference of $10,000 at the settlement of the property! The investor will pay you $10,000 and then he will pay the homeowner $130,000 for a total purchase price of $140,000.
And remember, like I’ve talked about in prior blog posts, you can (and should) always use a “weasel” clause in your real estate contracts, just for extra protection, should anything unexpected come up. This ensures that you’ll never be stuck with a preforeclosure or probate home you cannot flip.
If you use one of the two strategies I’ve shared with you here, you’re certain to quickly turn around every probate and preforeclosure home you invest in.
Again, if you’re a complete newbie to preforeclosure and probate home investing, and you have any jitters at all, the flipping method is for you.
If you have more questions about how my real estate courses can quickly help you on your way to lucrative real estate investing, visit