Foreclosure Investing - 5 Pitfalls To Avoid

By Mike Shackelford

Despite the huge money that can be made from investing in pre-foreclosure properties, there are also a number of pitfalls for the unwary. Here are five pitfalls to avoid:

1. Spotting a great opportunity, too late.

When a bank issues a notice of default to a home owner who has fallen behind in their payments, this notice goes onto the public record. Not only is it filed with the county recorder's office in the relevant county, but it gets included on various foreclosure listing sites on the Internet. If you're not actively monitoring these lists, and then finally come across a great opportunity, it could be too late. Some other pre-foreclosure property investor may have already negotiated to buy the home by the time you've decided to contact the owner!

2. Failing to gain the trust of the home owner.

Right now, pre-foreclosure and foreclosure property investing is one of the biggest games in town. So you can bet that distressed home owners are being harassed by investors promising them the world. Unfortunately, this includes various scam artists and wannabes who can't fulfill their big promises. That leaves home owners more skeptical than ever, so if you don't do all you can to prove that you're legitimate, you may lose the deal before you've even stepped in the home owner's door.

3. Incorrectly valuing the property.

Your ability to profit from a pre-foreclosure deal largely rests on achieving a big enough margin between the market value of the property, and the price you can get it for. While you can hire an appraiser to get an appraisal of the value, it really rests on you to get this right. You need to consider the market values of similar properties in the area, as well as the condition of the home. You also need to take into account any liens (unpaid property taxes, utility bills, etc) that may attach to the property. If you misread the value, you could get yourself in trouble. As a rule of thumb, you want to make sure that you're getting such a good discount that you could sell the home now OR in the future, and still make a profit.

4. Making an offer that's too low, or too high.

Make an offer that's too low, and the home owner will simply reject it. Remember, they want to get some equity or at least settle their debts with the price you offer. On the other hand, if you offer to buy the property for too much, you could erode your own ability to profit.

5. Failing to properly finance the deal.

You also need to finance the deal. The last thing you want to do is to get yourself into financial difficulty by taking on a loan that YOU can't sustain!

These pitfalls may seem basic, but it's often the basic things that get missed when you're eager to find the next best deal. By all means stay enthusiastic, but also be aware of the foregoing pitfalls. That way you'll be in good shape to find profitable pre-foreclosure properties to invest in.

Mike Shackelford has been working from home and successfully Investing in Real Estate since 2003. For more Real Estate Investing information, photos and Free Downloads visit: http://www.MikeShack.com - Free Foreclosure Investing Mini Course "7 Foreclosure Secrets".

Cheapest Residential Land in Australia, $65000, and Located near Australia’s Third Largest City

by Dominic Alberth

There is a secret hidden in South East Queensland Australia. This secret is called Russell Island. Situated just 20 minutes off the coast of Brisbane (Australia’s Third largest city), and within commuting distance of the Brisbane CBD, is an island paradise.

The biggest secret is that land over here sells for around $65,000. Looking east we have beautiful views of North Stradbroke Island and looking south you can enjoy the magnificent views down Canaipa channel all the way to the Gold Coast.

Now with about 1000 people a week moving to South East Queensland for the weather and relaxed life style it is only a matter of time before this secret is out. Vacant land adjacent to Russell Island but situated on the main land sells for a minimum of $300,000. This means that for the inconvenience of a pleasant 15 minute ride on the water taxi, you could buy land at just a fraction of the mainland price.

The last 12 months have seen some major infrastructure coming to the island. These include:

6. An island police station and police residence.

7. Construction of a new soon to be completed shopping centre which will include a super IGA supermarket and half a dozen specialty shops.

8. Construction of a public swimming pool.

9. A proposed $150 Million resort is in its final approval stages.

10. Plans for a $4 Million hotel was submitted to council.

For simplicity purposes I have listed some of the attributes of Russell Island in point form:

• Situated in the fastest growing region in Australia;

• Land sells for around $65,000;

• 15 minutes from the mainland by water taxi running approx. every 30 minutes all day everyday;

• Water, telephone, electricity available;

• Currently septic but Sewerage implementation proposed by council for the not too distant future;

• Bus connection from water taxi to Brisbane center;

• Proposed bridge to Stradbroke Island via Russell Island;

• Water Views to Stradbroke Island and down to the Gold Coast;

• There is a primary school on the island and access to a high school on the main land;

• Many shops including corner stores, hardware, bottle shop, bowls club, doctor, Service

Station, chemist, library, gym, etc;

• 10 minutes by small boat to the beautiful sandy beaches and open surf of North

Stradbroke Island;

• Population is about 4000;

• Largest of the Southern Morton Bay Islands approximately 11km long.

With housing affordability at crisis point in Australia this is an ideal place for people to enter into the market and choose to build now or hold on for future capital gains. This means that there is no excuse not to enter into the property market.

Resource/About Author of
russellisland.com.au

russellisland.com.au has a wealth of information about Russell Island
including property listings, photo album and an updated local news page.


Published By: Indocquent.com- An online resource that allows businesses and individuals to promote their business, products and services in over 20,000 cities throughout 200 countries around the world.

Cashing in on Repossession Property

by michael sterios

With the number of repossession properties on the rise there are a large number of companies and individuals who have begun invest in properties owned by people in financial distress.

In fact, the sheer volume of home owners looking to stop repossession of their properties due to financial problems has spawned a national trend. Home owners who are heavily in debt and have not been able to keep up with the monthly repayments due on their loans have increasingly been offering their properties up for sale at heavily discounted prices.

The catch is that the buyer must be in a position to take the property off the current owner’s hands in a short space of time. The overall objective is that the seller will receive enough funds from the buyer to clear their loan balances and arrears and stop the repossession process, even if that requires selling the property at a hefty discount.

Subscribe to our Newsletter

Savvy property investors have latched on to the notion of being able to secure properties at bargain prices and currently there are more people than ever before offering financially troubled home owners the chance to clear their debts and avoid repossession and eviction.

For many investors, this seems like the perfect way to build up a healthy property portfolio, but what are the risks?

The first and probably biggest risk to consider is that properties offered up for sale by people who have no money are usually in a poor state of repair. This means that although the buyer may receive a large discount on their purchase, they may be required to fork out some money as soon as the purchase is completed to bring the property up to scratch.

It makes perfect sense that a home owner who cannot meet their monthly mortgage payment for at least several months can also not afford to keep their home in a good state of repair.

Another risk factor to consider is that many of the sellers wish to remain in their homes as rent paying tenants. Buyers will need to keep in mind the fact that their tenant may not have any savings at all, and possibly an irregular income, and therefore may not always pay rent on time or in full.

If the tenant does turn out to be less-than-perfect the landlord will be forced to evict them. It is probable that the tenant will not be pleased with this considering the property was once their own home and, despite the fact they may not be paying their rent on time, they may not go quietly.

A final risk factor to consider is that the cost of borrowing has increased in recent years and may continue to do so. Therefore, if the investor is going to finance their purchase with a mortgage, they will need to factor in potential future interest rate rises.


Sell Your Property Fast and Stop Repossession of your home through We Buy Property Fast. Contact us today and avoid repossession.



Published By: Indocquent.com- An online resource that allows businesses and individuals to promote their business, products and services in over 20,000 cities throughout 200 countries around the world.