Think that the real estate market is dead in the water? Think again. You can make just as money in the real estate market today than you could have 10 years ago. You just have to understand how to play the market.
Everyone knows that the residential real estate market has crashed. Every day we turn on the news to hear of more foreclosures hitting the area in which we live. The United States has more foreclosures in the market today than ever before and the number is expected to rise.
The most logical thing that anyone can do is to buy foreclosures. But this is not always easy, especially for a beginning investor. You may be up against someone who has been doing this for a long time and knows how to bid with a certain lender. And because so many people have the same idea, you have quite a bit of competition. It may be enough to put you off of real estate investing.
This is why you have to look for the short sale. The short sale is the premier way to invest in today's real estate market. This entails you getting to the house before it has gone into foreclosure. You make an offer to the buyer to get out of the house without having to pay any more money and negotiate with the bank to let you have the house for less money. And what happens then? You have created instant equity in the home.
For example, you have a property that is on the market for $200,000. The owner owes $190,000 on it but is behind in his mortgage payments. He is heading towards foreclosure and knows that he is not going to get any equity out of the house. Still, he is worried about a foreclosure being on his record. A foreclosure is a severe black mark against your credit report - no one wants that. This poor owner is thinking that he is going to have to bring a check to the closing to pay off the taxes and everything else that is due.
The bank doesn't want the house. They already have too many foreclosures on their books. They want their $190,000 but know they aren't going to get it. The owner has no money and is currently on disability. If they foreclose, they are going to lose even more money in legal fees and time. Then they have to try to sell the house. It will end up costing them at least $40,000, not including their lost time.
You make a deal. You offer the owner $150,000 for the property. You get the paperwork together and negotiate with the bank. They go for the deal because they know it will end up costing them just as much if not more to foreclose and this is a sure thing.
You now have a house worth $200,000 that you bought for $150,000. You have created money out of thin air, and without battling a lot of competition. This is how you make money in the real estate market today.
Author Resource:-
For more articles and a 10 part e-course on how to create your own Ultimate Buying and Selling Machine! plus over 50 training audios, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access
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