Real Estate Investing Facts

One of the chores involved when investing in real estate is contacting and talking to preferably only motivated sellers, and steering clear of the rest. Home owners dealing with preforeclosures will be the most motivated sellers you will come across. Their world has been turned upside-down, They are about to lose their home, everything is about to change.

At this point they are so motivated, they just want their problems to go away. When you purchase pre foreclosures from people who are motivated you can easily create 25% or more equity spreads on properties, more often then not in good condition.

Hans Anderson

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To make money as a real estate investor, you really only need 2
things:

1. A motivated seller

2. Know how to do no-money-down deals

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Last time we covered how to find a motivated seller. Today, you will discover how to buy real estate for no money down. If you are like me when I started, then you probably don’t have tens of thousands of dollars in the bank and you probably don’t have the best credit score either.

If you do, that’s great!

But if you don’t, then doing “No Money Down” deals is exactly what you need to do to start earning some big, fat checks in real estate.

So how exactly do you do that?

To make big profits in real estate even if you have no money for down payment and no-credit to qualify for any loans or mortgages?

Well, have you heard about a double closing?

Here’s what it is…

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Double Closing- A closing is a process where title is delivered by deed from the seller to the buyer.

In a double closing you buy and sell back-to-back; you do not need any of your own money to purchase the property from the owner before reselling the property to your end buyer.

Here’s how a double close works:

1. You sign a written purchase contract on a property with a
motivated seller such as a pre-foreclosure.

2. You sign another written purchase contract with your end-buyer where your end-buyer agrees to buy the property from you at a higher price.

3. The only party that comes to the table with money is your end-buyer. If your end-buyer is getting a mortgage from the bank, the bank will send the money directly to a closing agent (a middle-man, could be a lawyer or notary etc).

4. The seller signs his house title over to you, but gives it to the closing agent.

5. You sign the title of the house (which you don’t own yet) over to the end-buyer.

6. The closing agent delivers the money to the seller for the
purchase price and you get the difference. (Here’s your fat juicy profit cheque)

7. The closing agent will then register the title in the end-
buyer’s name at the land title office. (by passing you completely)

That’s it!

And this is just ONE way of doing it, I know about 40 more strategies that can be used in various different situations!

What’s interesting is that even experienced investors who are worth millions do No-Money-Down deals.

It just makes sense!

So why not do what the rich are already doing?

If you do, wouldn’t you get the same financial results as they?

From my personal experience… you definitely will!

But wait, just because you understand how to do that, doesn’t mean you can make as much profits as you set yourself to make.

You need a DEAL to make money.

As Donald Trump says, “The money is in the deal!”

If you’re thinking of spending thousands or even tens of thousands of dollars in real estate courses, then stop right now!

I did that myself, and when I finished those courses, sure…
I had more knowledge, but I still had no DEALS to make money with.

It was not until I had a DEAL that I started making money… a LOT of money.

With my pre-foreclosure listings, you don’t have to waste your time sailing the ocean (or surfing the net) to look for real estate deals. You are getting the hottest deals where you live handed to you on a SILVER PLATTER!!

It’s only a matter of time that you get your first…second… and third bank-breaking deal!

And what’s more… Foreclosure Insiders Club members get access to my educational resources. including 8 ebooks.

The first one is “No Money Down”, a perfect place for you to start educating yourself!

Don’t be like one of my members:

“I just found out (too late) that a house down the street from mine worth 680K and it was let go for 250K… ARGG!!!! Again
this was an inside deal with no realtors and they were in
pre-foreclosure…”

Take action, your success is in your control!

To Your Success!

Aiden Win

Mr. Foreclosure

Canada’s Largest Database

P.S. There are deals right under your nose!
Join Foreclosure
Insiders Club and become a member of a small circle of insider investors who are making a killing on pre-foreclosures that the public doesn’t even know exist!

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You will have to familiarize yourself with real estate terms and language that investors use in conversation. Build relationships with Realtors in your market, learn what the average price is for the type of investment property that you may want to purchase.   Reading the local and major newspapers real estate sections in your market will help you to get to know what the current asking price of properties are.  Know what homes are in foreclosure, in pre-foreclosure and who is selling by for sale by owner.

Find out what rents are through the local classified section or knock on some doors in your perspective market and ask.  Just explain that you are an investor and that you are looking to buy in this area.  The worst that can happen is they tell you to get lost, and then ask someone else.  You are going to half to get out of your comfort zone, failure comes before success.

Once you become familiar with your area you will be able to notice the good deals when they come up. This is something that can be done in your spare time or on a part time basis. When you’re just starting out don’t be afraid to call a vendor who is selling their property and ask questions. At first it doesn’t even have to be a property that you are interested in.  If you call vendors just for practice you can work out the kinks in what you want to know and how you want to say it.

Nobody said that being a real estate investor was going to be easy, there are no short cuts. You will have to put some sweat equity into learning and understanding what takes place in your market.  Having a good realtor on your team will help you find properties, but the more you understand the greater chance you will have in finding a good deal.  Make sure you understand your market.

Canadian Foreclosures

Kick Start Your U.S. Foreclosure Investing

Hans

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Real estate investing is a business and a profession. Real estate investing education coaches are quite often inexperienced at investing, giving investing advice and teaching. The best way to start investing with real estate investing strategies comes from a dedicated mentor with experience who cares about the success of his students. He will offer informative detailed investing courses to help the new investor to learn to invest.

You don’t want to be one of the three types of investors below.
continue reading>>.

Hans Anderson

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There are three strategies you need to learn to be effective and profitable as a real estate investor. Here they are:

- “Traditional” Cash Purchases

- Subject-To The Existing Mortgage

- Lease-Option

Find Great Deals

Let’s take a look at each one right now:

“Traditional” Cash Purchases

This is the one that’s the most obvious, and here’s how it works:

The Buyer and Seller agree on the price for the property. The Buyer then brings cash to the closing table and pays off the purchase price in cash.

(It’s important to understand that the Buyer may have acquired a loan to supply the cash. It doesn’t really matter – there is still cash at the closing table which pays the purchase price.) While I prefer to use creative strategies to buy real estate, the “cash option” is always great to be aware of.

After all, there will be circumstances you face in which cash is the only real option, since the seller needs to receive a large amount of cash to make the deal work.

Even if you do not have cash (or the credit to acquire cash), you need to be familiar with cash transactions. Why? If you find a property worth $100,000 and the seller is only asking $50,000, do you think there’s a way for you to make money on that situation even if you don’t have the money to buy the property? The answer is a strong YES!!! (We’ll talk more about this type of strategy in a coming pst…)

“Subject To The Existing Mortgage”

This is, without a doubt, one of the most powerful strategies available to real estate investors. Imagine this scenario…
You, the wise investor, find a home owner facing foreclosure. The home is worth $250,000 and the balance of the debt is $180,000, including an “arrearage” (missed payments) totaling $12,000.

The home owner knows that they can no longer afford the home, and all they want is to save their credit from a foreclosure. So they agree to let you have the house for $180,000 – the balance of the debt.

Does this really happen? Every single day.

But the question is this:

What do you do if you don’t have $180,000 to pay off the mortgage? This is clearly a great deal, and the house is in excellent condition, but what do you do if you don’t have all of the necessary cash?

The answer to that is a “Subject-To” transaction. What if there was a simple way to influence the home owner to transfer title to the property to you (which causes you to be the owner), and in exchange you’ll simply make the payments on his existing mortgage for him?

This is a clear win-win scenario. The home owner, who knows they can’t afford the home, is relieved of the monthly payment. Furthermore, they are saved from foreclosure, which is the worst thing that can happen to a person’s credit report.

And for you, it’s a huge win…simply because you now own this property, without ever having to get a mortgage or put up the whopping sum of $180,000. Instead, you’ll just make payments on the existing mortgage.

Of course, you do have to pay the $12,000 in missed payments – but it’s a lot more practical (and possible) to find that amount of money rather than $180,000. All in all, it’s a HUGE positive trade-off in your favor.

“Lease Options”

The “Lease Option” is a great (and simple) strategy that allows you to either buy or sell a piece of real estate under very favorable terms. Here’s how it works:

A “Lease” is just an agreement that gives someone (the “tenant”) the right to use a property in exchange for payment of rent to someone else (the “landlord”).

An “Option” is an agreement that gives somebody (the “buyer”) the right (but not the obligation) to buy a property from someone else (the “seller”). The agreement specifies how long the buyer has to purchase the property, along with setting the purchase price and other important terms.

(For you legal beagles, the technical term for the buyer in an option agreement is “Optionee”, and the seller is called the
“Optionor”…)

The important point is this: If you purchase a property via a properly structured Lease-Option, then you have the following rights:

- To use the property however you like (within legal reason).

- To sub-lease the property to someone else and make a profit from doing so.

- To resale the property to someone else, and keep the profit from the sale.

And all of this comes without a credit check or the need for a lot of cash.

The Lease Option provides similar benefits to the Subject-To, but there are some critical differences. In fact, there are clear rules for when to use one versus the other, and violating those rules can cause significant legal difficulty.

We’ll talk more about those rules in the coming posts, so stay tuned!

Aiden Win

Mr. Foreclosure

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