OakLeaf Plantation Real Estate Jacksonville Florida Real Estate

Posts Tagged ‘pre-foreclosure investing’

How do you know what form of real estate investing is best suited for you?Many years ago, we learned about the power of foreclosure investing.When attempting to explain foreclosure investing, you could cover a wide range of topics from a homeowner missing their first mortgage payment all the way to the house selling at the courthouse steps.

Then someone came up with the idea of pre-foreclosure investing.Pre-foreclosures begin with a notice of default being filed at the local courthouse and leads all the way up to the Sheriff sale or foreclosure auction. 

Reason 1 – Sellers Have A Very Compelling Reason To Sell

I don’t know why people who get into this situation do the same thing every time, but they do.  In virtually every case, when you see this situation develop, the homeowner is usually going to fail to make a mortgage payment and the property falls into foreclosure.

When a homeowner falls behind on the mortgage payment, its very difficult for them to catch up.

The leading factors that cause someone to fall into pre-foreclosure are:
1. Divorce
2. Loss of job
3. Extended or prolonged illness
4. Job or position transfer
5. Drug and/or alcohol addiction

Sellers who find themselves in pre-foreclosure almost always have to sell the house in order to avoid the foreclosure auction.  Experienced foreclosure investors know that when they help sellers first, they are then rewarded with these steeply discounted investment properties.

Reason #2 – Less Competition For The Experienced Pre-Foreclosure Investor

Many real estate investors don’t know how to evaluate a market and find the most profitable investment properties. These real estate investors typically thumb through classified ads each week and attempt to buy foreclosure property.Some of these real estate investors hire real estate agents and attempt to locate investment property – but these properties come with high, retail prices.

You won’t make it in the real estate investing business if you don’t know how to buy investment property.You must learn how to buy investment property at wholesale prices.

Serious pre-foreclosure investors do not pay too much for investment property and normally do not work well with real estate agents.These investors know how to sniff out and locate the hottest real estate deals in the market.Pre-foreclosure investors don’t wait around for something to happen – they go out and meet these sellers. 

Now some pre-foreclosure investors mail out post cards and make phone calls in attempts to contact sellers in pre-foreclosure.I have found the most effective approach to pre-foreclosure investing is to physically travel out to each house and meet with the homeowner. 

This approach offers the highest return on your investment dollar with the least amount of competition.Very good combination if you’re interested in building long term wealth.