Real estate is one of the most thrilling financial markets out there, and that’s because there’s a huge amount of money to be made… IF you know the crucial secrets to success.
For example, by learning just a couple key secrets in one real estate niche, some have turned a six-figure income into over a million dollars, with one person earning over $165,000 in a single month.
That’s life-changing money, and it could be within your grasp when you know these secrets to unlocking real estate riches…
One of the most exciting and profitable areas within real estate is foreclosure investing. Trust me, it has the power to transform your life.
With that said, let me reveal the main secrets that could start filling your bank account with cash:
In a foreclosure, the owner has several options. The first secret is knowing what all those options are…
The second secret is positioning yourself to help the owner get out of foreclosure with as little damage as possible to their credit.
If you can master these two steps, you could be on your way to living the luxury lifestyle you’ve always dreamed of!
Before reaching out to an owner in foreclosure, it’s essential to understand their options.
Here’s a quick rundown:
Do Nothing
The owner can choose to walk away and let the lender move forward with the foreclosure. While this may be a valid option in some cases, it will have a lasting impact on their credit.
File Bankruptcy
This strategy typically only buys some time. Filing for bankruptcy can temporarily stop the foreclosure process, but the lender can obtain a release from the court to resume the process, which will happen unless the owner can catch up on missed payments.
Deed in Lieu
The owner can transfer the property to the lender through a “deed in lieu,” which allows them to avoid the foreclosure process altogether.
Refinance
Despite what you see on TV, refinancing the property with a new loan is incredibly difficult when the owner is behind on payments.
Sell
Selling the property before foreclosure is another option, but it comes with challenges. The buyer might not qualify for a loan, and deals can easily fall apart.
Reinstatement
The owner can cure the default by paying back the missed payments using a short-term loan or personal funds. However, they’ll also need to cover extra costs like attorney and filing fees.
Once you’ve grasped all of that, it’s time to move on to the second secret and lock in a profitable deal by following this script:
- Once you’ve identified a great property deal, contact the owner and set up a time to visit the property.
- When you arrive, ask for a tour. Use this time to start a conversation and break the ice. Ask about their situation and show genuine empathy. Here’s a tip: your empathy must be authentic—people can easily tell if you’re faking it.
- After the tour, sit down with the owner(s) and let them know you can help. This is when the first secret comes into play. Explain all their options as a homeowner in foreclosure, and then explain why selling is their best route.
- Casually mention that you have other meetings lined up with homeowners and that you only take on a few clients at a time.
- Next, explain how you’ll make the back payments on their loan and immediately boost their credit score. This is when you demonstrate your value.
- Outline and agree on the terms of the sale. A helpful tip is to acquire the property on a “subject to” basis, meaning you’ll continue making payments on the loan in their name. This will keep improving their credit score. By doing this, you bypass banks and realtors, which are extra costs for you.
- Once everything is agreed upon, just before presenting the purchase agreement, mention that the other homeowners you were scheduled to meet with later are likely out of luck. This simple statement helps eliminate any hesitation on their part.
And there you have it! You’ve closed the deal, and now it’s time to flip the property for a quick profit! Your real estate success will be well underway and you can start stacking these types of profitable deals!
