Searching for FSBO Properties

One of the smartest actions a homeowner can take when they find themselves in a financial hole they can't dig themselves out of is to sell their home and move into more affordable accommodations. To save money, they may try the FSBO (for sale by owner) route, so they don't have to pay the standard 6-8 percent real estate commission. This approach, however, often backfires, because selling a home without the assistance of a real estate agent isn't all that easy. The homeowners may find that they...

Keeping hungry investors at bay

A major threat to your investment property during the redemption period are other investors who may try to convince the homeowners that you're ripping them off. Another investor can step in, assist the homeowners with redeeming the property, and then buy it from them, cutting you out of the deal. Whatever you paid for the house at auction along with property taxes and insurance premiums you paid and filed an affidavit as having paid plus interest, are refunded to you upon redemption, but you...

Building a Property Dossier

Investigating a foreclosure property's vital statistics Gathering legal documents at the Register of Deeds office Inspecting the property from the street Checking your list to ensure you have everything you need ZM large part of foreclosure investing consists of investigating knowing W what you're about to buy before you lay your cash on the line. You need to know how much the property is worth, how much is owed on it, whether it has any additional liens or encumbrances on it, whether the...

Index

Accountant, hiring, 62 ACT computer program, 98, 137 activity schedule, foreclosure, 134-137 address of property, finding, 121-122 adjournment, 45, 172, 183 advertising, 107. See also marketing networking affidavit for expenses, 26, 37, 263 affidavit of designee (buyer's affidavit), 200 Alabama foreclosure regulations, 328 Alaska foreclosure regulations, 328-329 amortization, 78 Annual Credit Report Request Service, 85 appliances, kitchen, 279 appreciation, showing, 99-100 Arata, Michael J....

Selling Your Property for Top Dollar through a Sellers Agent

If you plan on selling the properties you buy, a top seller's agent can assist you in marketing the property and selling it quickly and for top dollar. I strongly encourage you to enlist the aid of an agent in selling your investment properties. What you pay in commissions, you usually earn back with interest, because a great agent can sell the property for more money in significantly less time than you can on your own. In the following sections, I explain the beneficial services that agents...

Calculating your top cash offer

Your goal in any real estate investment property should be to earn no less than 20 percent on your total investment. In other words, you should be fairly certain that you can sell the property for 20 percent more than the entire amount of money you've invested in it, including Payments to lien holders to pay off loans and back taxes Cost of repairs and renovations Holding costs (monthly loan interest, taxes, insurance, and utilities) to cover the time between when you buy the property and when...

Acquiring Properties after the Auction

The auction close doesn't signal the end of your opportunity to acquire foreclosure properties. For investors who choose to focus on post-auction properties, an auction's close signals the beginning. These investors don't want to deal directly with homeowners, and they prefer to avoid the sometimes messy auction process. They'd rather buy properties from the new owners. In the following sections, I list various opportunities and resources for tracking down post-auction properties, from...

Knowing the lien holder pecking order

Lien holders all lay claim to a property, but all liens are not created equal. By assessing the strength of each lien holder's position in line for receiving payment, you place yourself in a superior position to negotiate. Think of lien holder positions as the value of each card in a deck of playing cards 1 Ace The property tax collector generally holds the Ace, because foreclosure can wipe out all other liens except the property tax lien. If you can purchase the tax lien, you almost always...