Friday, January 11, 2008

The Reality of Investing in Foreclosures...

There is a lot of hype that foreclosures are on the rise. This is reality.

There is also a lot of hype suggesting that investing in foreclosures is get rich quick fix that is easy to do with no money down. There are infomercials and seminars that try and get you to come learn the "secrets" of foreclosure investing with no money down. Really, these free programs just try and get you to subscribe to their incredibly overpriced "training" and "mentoring" programs so you can learn the real details of "real estate investing." They have very little real real estate investing info and a lot of hype up showing how rich you'll be and how easy it is to do. These programs target the people who don't have any money down, because they are looking for the suckers. They are looking for desperate people who will be willing to go into further debt for the mentoring programs in hope they can fulfill their dream.

Investing in foreclosures is not easy, and it is especially hard if you don't have money to put down. The door of opportunity is much bigger if you have sufficient money where you can put cash down and purchase distressed properties in a matter of days. It's not impossible to buy foreclosures with no money down, but these methods can be very risky or on the borderline of unethical/illegal.

There is also a misconception that if a house is a foreclosure, it is a deal. In reality, many foreclosures are overpriced for the amount of work/risk required to purchase them.

To really invest in foreclosures. The first thing you must do is understand the foreclosure process. You must understand:

1 comment:

Alan Barker said...

All the real investors make their money by buying and selling Pre-Foreclosures. Foreclosed Houses can rarely be found for less than 20% of market value. Half the time they're over priced for all the repairs they need.

The best places to find sweet deals are places with heaps of foreclosures like and Las Vegas Nevada.