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In the last few years, foreclosures have become, without a doubt, one of the biggest opportunities for real estate investors without a doubt. There are foreclosed properties all around and there always will be, in fact this is the best time to get on the bandwagon and start investing in foreclosures.

The process for making money with foreclosure properties is relatively simple and takes little to no time in many cases. All you need to do is find a deal, flip it, make a fair profit, and move on. The objective is not to hold on to the property, fix it up and make a huge profit. That requires work and a lot more time. When you look at just the dollars and cents of the matter, you can make the same amount of money by flipping a few houses in a short period of time with less risk and less headaches. Your time is more valuable and should be spent finding potential deals and buyers, not making repairs or playing ‘Bob the Builder’ on long-term, expensive projects.

The most successful investors know the benefits of buying and reselling properties quickly. Not having to deal with the hassles of long term funding, tenants, repairs, etc. is a huge plus, and having the ability to make a quick profit is what makes this so appealing.

The owner of a foreclosed property will lose money until the property is sold. Because of this fact, you will have the opportunity to buy foreclosures at a deep discount. When you buy at a deep discount, you can also sell at a deep discount. Any property can sell if you sell it cheap enough, and as a matter of fact, any property will sell quickly if it’s cheap enough! The key to continually making money in real estate is to sell a property fast and make a profit fast and you must do it by buying low and selling low.

Proof of Funds

There is one vital thing that you will need for every offer you make in this business and that is proof of funds. No one will take you seriously unless you can show them that you have the cash to purchase the deal on hand. No seller wants to waste their time or risk a home sale because they are uncertain if the buyer has the cash to close.

Having a valid proof of funds letter backed by a valid source will be a determining factor for whether your offer gets accepted or not. This is by far one of the most important tools you will need to invest in a foreclosure.

Depending on the property you find, there may be several other investors jumping at the same opportunity to make a quick profit. That means that you will have to stand out to the seller even more so that your offer is accepted. Having a proof of funds letter will put you on the top of the list and confirm you are a legitimate buyer who can close both on time and fluently.

 

Motivated Buyers

In order to sell your property quickly, you’re going to need to attract motivated buyers to the property. You can’t expect to sell if you spark no interest. If you sell low, it won’t be difficult at all. Over time you will build out a list of buyers you can turn to that will give you the ability to sell your deals fast. Motivated buyers are constantly looking for deals and are on the prowl right now, so make your deal appealing enough and you will have buyers coming to you.

One of the best ways to draw in motivated buyers is by posting property/deal ads of your own. These buyers are out actively looking for deals, so they are more than likely to find your ads. Build a buyers list, and make sure those are the first people you contact when you have a property for sale.

Don’t let all of the buyers come to you though, get active and go find them, too. You can prove that you’re a motivated investor by going out and tracking down some motivated buyers yourself. You can tell a buyer is motivated if they are posting “I Buy Houses” ads in the newspaper or penny saver, or if they are putting up bandit signs looking for motivated sellers.  You can also find some of your best motivated buyers at Foreclosure sales and real estate investor club meetings. In many cases, cash buyers are motivated as well; look through public records to find good potential buyers.

Making money in foreclosures is easy if you follow the simple motto of buy low and sell low. Running your foreclosure investing business with this in mind will allow you to make fast money with the least amount of risk and biggest upside possible.