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The following article will clear up the myth that hard work is not required when trying to find foreclosures.

Hard Work

By Daryl White

“Don’t join an easy crowd; you won’t grow. Go where the expectations and the demands to perform are high.” Jim Rohn

Lately I’ve been hearing more and more “man, this business is hard work” from my new Coaching clients. Truthfully, I’m always a little surprised. After completing their Six Steps home study and the 3-Day Kick Start Your Foreclosure Investing, where Alexis tells them in no uncertain words “being a successful investor does not come easy, this takes hard work.” But the reality is that many people hear only about the money being made, and don’t really hear the “hard work” part. And I think I know why…

When you watch late night TV, you are told over and over again; that making money in real estate is “easy” – you just have to “know the secret systems” that they will “share with you”. You’ve heard the pitch I’m sure “just buy my program and you’ll be wealthy beyond your wildest dreams”. Or, “anyone can do this”. Or my favorite “if I can do it, so can you”. The reason that’s my favorite is because I believe they are telling you the truth, without even realizing it. They aren’t really doing it and neither can you, at least not the way they make it seem.

(If you haven’t read Alexis’ column “There are No Secret Marketing Systems” please make sure you do.)
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Kick Start Your Foreclosure Investing

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Foreclosures tax sales are the product of homeowners who fail to meet their tax obligations and lose their homes to the government. The government often sells properties that it has acquired through tax foreclosures to people who can pay the taxes that are owed. They are sold in proceedings during a tax foreclosure sale (or tax deed sales). Government tax sales were created to recover the taxes that the original homeowner did not pay.

In selling these properties under tax foreclosure, the government offers the liens (the unpaid taxes, the interest for those amounts, and the selling costs involved) to interested investors in a public auction. In case there are many prospective buyers of these liens, the winner is awarded the properties in any of the following methods:

-Bid Down the Interest Method – The government fixes a maximum rate of return and the bidders have to stay within that rate limit specified. The investor accepting the lowest rate of return among the bidders is declared winner of the tax foreclosure property. In cases of ties on the bids, the impasse is resolved through a random or rotational method.

-Premium Method – In the premium method, an investor who is willing to pay the highest premium on the lien amount is declared the winning bidder. This method of selecting the winner in an auction is used and preferred in some parts of the country

-Rotational Selection Method – The investor listed first in the list of bidders gets the first offer of the liens in the rotational selection method in the auction. In case he declines, the offer is made to the investor next in the line and so on. The first bidder, who declined in the first round, is offered another lien only after an equal chance is given all potential investors that are included in the list.

-Random Selection Method – In this method in an auction, the potential investor gets selected through a random process usually done through the use of computers.

-Bid Down The Ownership Method – The lien in this method given to the bidder who buys the property at its lowest cost. If he buys it at 90% of the property cost, and in case of redemption of the lien by the original owner, this investor would only be eligible for 90% ownership and the remaining ownership of 10% would go to the original owner of the property in question.

Not all liens get sold right away in an auction and when this happens, the unsold liens remain in the hands of the government entity that conducted the auction. It could conduct another auction later. In the meantime that the liens are unsold, the unsold liens are called “struck” liens.

The last thing you want is to miss out on a good investment because you don’t understand the auction procedures. Make sure you fully understand the type of auction you are going to. If your new to investing you might want to consider joining a real estate investment club

Hans

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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.

Hans

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Here’s the third and final fatal flaw of newbie real estate
investors:

Fatal Flaw #3

Failure To Establish Clear Goals And Defining “Success” As Anything Other Than Making Big Profits…

Canada Foreclosure List Quick Start Package

There’s only one reason for you to be a real estate investor: TO MAKE MONEY. Seems obvious, doesn’t it? But I’ve discovered that some investors don’t have a clear profit motive for being in the business.

Just imagine this (very common) scenario: An aspiring real estate investor named Joe sees an infomercial on late-night T.V. He becomes mesmerized by the amazing claims of massive wealth, and so he decides to order the course called “Make A Gazillion Dollars As A Landlord”.

The material arrives and Joe rips open the box and sticks in the video tape. He consumes every word like a hungry lion chews on his prey. Joe really starts to get excited, and he sees the potential for creating huge long-term wealth. He believes that the ideas will work, and he wants to put them to work for him.

So he goes off and diligently attempts to find good investment property. And while he’s doing this, he tells his friends and family all about what he’s doing. He discovers that his friend at work, George, also is interested in real estate – only George focuses on “rehab” deals. Instead of doing rentals, George finds broken-down houses, completely renovates the property, and sells the property for a large profit – usually around $20,000 or so.

…and Joe begins to get a little jealous, because he can see that using his Landlording strategy, he’ll have to wait a long time – maybe 10 to 20 years – before he’ll really see any significant profit. But George is making big lumps of cash every few months. Joe wants some of that cash.

So, Joe goes to a seminar to learn about rehabbing. He gets excited about that, but then the process repeats. Joe hears about the next “latest-greatest” strategy, and he does to yet another seminar and learns that one, too.

Is it wrong for Joe to go to the seminars and learn the strategies?
Absolutely not. It would be stupid for Joe to try to invest without proper training. But……Joe has two problems here: * Problem #1 – is that Joe didn’t take the time to define why he wanted to invest in real estate. If he was investing for retirement, then his original Landlording strategy may have been appropriate. But if he wanted to make significant current income, then Landlording certainly isn’t the way to do it. Joe wasn’t clear about his goals and until he establishes some clear goals, he’ll spin his wheels and waste ever more money on courses and seminars that will never do him any good.

* Problem #2 – Because Joe hasn’t yet experienced any real financial success in real estate despite spending a lot of money on courses; he starts to redefine his internal definition for “success”.

Instead of success being equated with financial results, Joe has slipped progressively into a state of mind in which he defines success as his ability to learn more strategies and be the most knowledgeable “investor” around – despite the fact that he’s never done a deal.

You know what I’m talking about, don’t you? Joe has become the type of person who acts as if he knows everything there is to know about real estate investing, but the fact is that all he has is “book knowledge” but no financial results to show for it.

Because Joe didn’t have a clear picture in mind of what he wanted to accomplish, he has not made any profits. And because he hasn’t made any profits, he’s subconsciously chosen to redefine “success” as “the attainment of vast knowledge about real estate investing” rather than “the attainment of vast wealth from real estate investing”.

Why does this happen? If Joe doesn’t make any money, and his internal definition of success is to make money, then Joe would have to brand himself as a failure. And Joe isn’t comfortable with that. So instead, Joe redefines success to match what he’s doing: Joe now considers himself to be a success merely by knowing all of the strategies, rather than using them successfully.

So Fatal Flaw #3 is:

Failing To Establish Clear Goals And Defining “Success” As Anything

Other Than Making Big Profit.

To Your Success!

Aiden Win

Mr. Foreclosure

Canada Foreclosure List

ForeclosuresTaxSales.com

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If your looking at getting the right training Robert Allen is your man.

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