I get asked all the time by new real estate investors if investing in hud homes is a good strategy. I will be recap in this article what I tell them .The increased demand drives up the price and new investors tend to get any and will buy based on emotion instead of logic because they just want to get their first deal. If you pay too much for a property, you will lose your shirt on the deal. Thats why it important to not overpay for the property because you make your money on a property on the day you buy, not the day you sell. This is why its important to have the right real estate investing training so you know how to spot the good deals from the bad and not overpay for a property. Your first deal can bankrupt if you dont structure it the right way. I see this all the time in my real estate investment club. The guys that dont take the time to invest in their education are soon out of business because they try and figure it out on their own and fail. Short Sales are a great way to guarantee that you wont overpay for properties. If you are wondering what is a short sale or are wondering what the definition of a short sale ishere you go. A Short Sale is when the lender accepts less than what is owed on a mortgage on home foreclosures.All of The deals are no money down. We dont give the sellers any money when we get the deed to their house.The only thing you have to pay when you get a deal is the cost of the notary and recording fee when you record your deed. Thats a maximum of $100. Now my acquisitions manager is a notary so I dont pay any notary fees. If you dont put any money down on the house, you arent putting any money at risk. You dont need good credit to do short sale deals. You dont need to go get a mortgage when you do short sales deals. If you dont need to use your credit, you arent putting your credit at risk. You fund the deal the way you structure the transaction. You fund the deal by either: The ability to own houses without having to make monthly mortgage payments. There are no monthly payments to make for short sale deals. The houses are eitherin foreclosure or about to be in foreclosure. You dont need to make any payments therefore you arent putting any money at risking making monthly payments. Preforeclosures and Short Sales are extremely easy to find right now. There arent enough investors out there to handle all of the deals in the market. Thats why Im on a mission to equip you with all of the resources you need so you can go out there and help all of these struggling homeowners and make a lot of money while doing it. You may here some real estate speakers say to stay away from foreclosures because there is too much competition. Well that was then and this is now. They are teaching old information because they are not currently practicing what they preach. I am actively buying and selling foreclosures in my own backyard and I know what works and what doesnt work. And I have to tell you there is no competition for preforeclosure and short sales now because there are so many of them. Short Sales are easy to get because it doesnt require you to do a lot of negotiating with the seller because they know they dont have any equity and theyre just looking for a way out. You are their solution! I love working with short sale sellers because they are the most motivated sellers out there. Short Sales are the most profitable quick turn deals to do in residential real estate because youre making all of your profit on the discount with the lenderOne of the biggest benefits of the short sale business is that it works even better on Luxury Homes. The banks are more flexible and more negotiable on larger mortgages. Banks dont want to take houses back and they definitely dont want to take back Luxury homes. It takes the same amount of work to do a deal on a luxury home than it does to do a starter home. The difference is A Luxury home pays 10 times as much profit. Its like doing 10 deals in one and when you combine the short sale strategy with luxury homes, youve got the golden ticket. You See, Banks are in the money business. Theyre not in the Real Estate business. They dont want to own any properties. Their only interest is making interest on their money. Foreclosing on homes is a hassle they have to deal with because its a cost of doing business for them. The sooner you understand this the sooner you will realize how huge this opportunity is for you right now. When banks lend out money they have to keep a multiple of 5 times the amount of money they lend out in reserves. When a loan goes bad, its now considered a non-performing asset and that limits the amount of money they can lend out. It costs a bank a minimum of $30,000 to foreclose on a home. They would rather take a discount on the mortgage and get that bad debt off their books so they can lend out more money. You are the solution for them. Banks need you to help them liquidate their houses so they can get rid of their bad debt. You are doing them a great service.
Why investing in hud home ?
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