ScaredyCatGuide Real Estate Series - Foreclosures Happen in Any Market

in money •  5 years ago 

Up, down or sideways the machinations of the real estate market will occur. Back in 2010 home foreclosures peaked at 2.9 million. In 2018 there were 600,000, the lowest number since 2008.

Point being, there are always foreclosures happening it’s just a matter of how many.

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Finding Opportunity in a Tough Market

Many investors, especially in hot markets are complaining that there aren’t any deals. They aren’t completely wrong, there may be less deals as we can glean from the foreclosures numbers – deals still exist though.

The 600,000 foreclosed homes in 2018, something has to happen with those. Some person, investor or business will likely end up with them.

So why not you?

If you are thinking – I don’t want to chase down foreclosure leads, prospect pre-foreclosures and possible auctions, you don’t have too.

I don’t. That is what I use wholesalers for. At this point anyone interested in real estate investing knows what a wholesaler is, but if not…

Real Estate Wholesaler: A person or entity that secures the right to purchase a property with a contract and finds an end buyer, whether by assigning them the contract or doing a double close.

That’s my official description for it atleast.

Leverage Resources

And that is exactly what I do. I leverage wholesalers who are out the making the calls, knocking on doors, etc. They find these deals and then I buy them if the numbers work.

Do they make a fee, of course they do – why else would they be doing it. It’s a win-win though. I’m free to work on building my real estate portfolio and they make a fee for bringing me a deal that I’m only buying of the numbers work for me anyway.

Plus my time is valuable and hunting leads is time consuming. Either way, there will always be some kind of opportunity out there.

As the title says, foreclosures happen in any market.

Be sure you are using the rental property calculator to analyzing potential deals a wholesaler may bring you.

For a complete guide on investing in rental properties and to discuss some advanced strategies for properties in foreclosure, such as assuming the mortgage or doing a short sale, considering this option: videos and coaching call

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Do they make a fee, of course they do – why else would they be doing it. It’s a win-win though. I’m free to work on building my real estate portfolio and they make a fee for bringing me a deal that I’m only buying of the numbers work for me anyway.

From what I got wholesalers is one of the best starting jobs in real-estate for people that don't have any money, because you can literally start with 0, and there are always big guys looking for the next big deal that don't want to go door to door to find a deal.

Exactly, it takes a bunch of hustle but is doable.

Great article! Money in real estate is made when you BUY at the right price. Keep the articles coming!

Yep, that is why it is important to "buy right" as I like to call it! I have a ton of real estate articles on my website if you wanna check it out https://scaredycatguide.com/category/real-estate-investing

much obliged! Thank you!

Great content! Yea the (pre)foreclosure market seems to have the deals with the most upside because the equity you get from the discount. I recently partnered with a few associates of mine and we're marketing to distressed properties to wholesale just to help with the start-up capital.
One of the 1st things I learned is you have to be willing to pay to delegate your tasks.

Yep, pre-foreclosure is a nice sweet spot. Creates a win-win for the investor and the seller.