Real estate can be one of the most exciting financial arenas in existence. I say that because there’s incredible amounts of money to be made…IF you know the vital secrets to success.
For instance, learning just two secrets in one niche of the real estate world helps turn a six-figure salary into over a million, and churned out over $180k in a month for one person.
That’s life-changing money, and it could be within your reach when you know these two secrets to claiming your real estate riches…
One of the most exciting and profitable disciplines within real estate is foreclosure investing. Believe me, it can change your life…
And to that point, let me go ahead and start by letting you in on the two secrets that have the potential to start dumping cash into your bank account by the truckload:
1. In a foreclosure, the owner has a number of options. The first secret is understanding what all of those options are…
2. Then it’s all about positioning yourself to get the owner out of foreclosure with the least amount of damage possible to his or her credit rating.
If you can do those two things, you have a chance to start living the lavish lifestyle you want!
So before even contacting an owner about a foreclosure, start by learning what options they have. Here’s a concise list:
- Nothing
The owner can simply walk away and let the lender proceed with the foreclosure. Now, this can be a valid option in some cases, but it will undoubtedly have a lasting impact on his or her credit.
- File Bankruptcy
This tactic only buys some time in most cases. While filing for bankruptcy can pause the foreclosure process, the lender simply has to obtain a release from the court for the process to continue, which will happen unless the owner can then make back payments.
- Deed in Lieu
In essence, the owner can give the property to the lender via a “deed in lieu”, which keeps him or her from having to go through the foreclosure process.
- Refinance
Although the commercials you see on TV can make it sound easy, refinancing the property with new loans can be an incredibly tricky process when the owner is behind on payments.
- Sell
Another tricky option is to sell the property before the foreclosure. The two biggest issues with this choice is that the new buyer may not qualify for their loan and that deals can easily fall through.
- Reinstatement
With either a short-term loan or his or her own cash, the owner can cure the default by paying back the missed payments…and then some. On top of extra charges, the payments will now include filing fees, attorney fees, etc.
Once you have all of that down, it’s time to move onto the second secret and secure a great (and profitable) deal, all by following this script:
i. After you’ve found a good deal on a property, contact the owner and set up a time to see the property.
ii. Upon arrival, ask for a tour. This is when you want to start up conversation and break the ice. Ask about their story, and show legitimate empathy. Here’s a tip: the empathy really does need to be genuine. People can see right through you if you’re faking it.
iii. Once the tour is over, sit down with them and tell the owner(s) that you can help them. This is where the first secret comes into play. Explain all their options as a property own in foreclose, and then explain why selling is their best choice.
iv. Slip in the note that you have more meetings set up with other homeowners, and that you never take on more than a few clients at a time.
v. Now show them how you will make back payments on their loan and improve their credit rating immediately. This is where you display your worth.
vi. Layout and agree to terms for the sale. A special tip here is to acquire the property on a “subject to” basis, which means that you’ll continue making payments on the loan in their name. That will continue raising their credit score. By doing so, you’ll eliminate banks and realtors as middlemen, which are simply more costs for you.
vii. When all is agreed to, and just before you bring out the purchase agreement, note that it looks like the people you were planning on meeting later or the next day are out of luck. This simple move will help to nip any “I’ll think about it” talk in the bud.
Then it’s all done! You have just made the deal, and now it’s time to flip it for an easy payday!
