1.  Motivation, Motivation, Motivation

We’ve all heard how important location is in real estate investing.  How many times have you heard, “It’s all about the location?  Location, location, location.”

Well, I’m here to tell you it’s not about location, its about motivation.So let’s say it together, “motivation, motivation, motivation.”

No matter your experience level in income property investing, the fundamentals are the same for all of us.

Buy the best available property at the lowest possible price. 

How do great real estate investors find the best deals in town over and over again? I thought you would never ask.

In order for the savvy property investor to buy investment property at a deep discount regularly, he or she must look for people who have compelling reasons to sell.  What do I mean by compelling?

These homeowners must sell or risk losing the house.

So instead of focusing on great property locations, start searching out sellers with big problems to solve? Help these homeowners out first and you will end up with the investment property.

What signs do experienced income property investors look for?

1. Divorce

Divorce is a major factor in our society and sadly affects many of us.This situation causes many homeowners to fall behind on the mortgage.The biggest mistake married couples make when buying a new home is to base the purchase decision on both incomes.So in this case, both incomes are needed to pay the big mortgage.Guess what happens when the income is split in half?

2. Unexpected Job Loss

In our economy today, unemployment is a much bigger factor than in years past.When someone takes that kind of financial hit (job loss), everything else is dramatically affected.  The house is the first thing to go.  When the money stops flowing in, foreclosure is right around the corner.

3. Extended illness or sickness

It’s never a good time to come down with a major illness.  And it’s really never good for the primary bread winner to go down with an extended illness.Cancer and a multitude of other major health problems can hit us at any time or stage in life.If a seller is underinsured and doesn’t have disability insurance, he or she will not be able to pay the bills
Any remaining money would go directly to pay the medical bills.

4. Job Transfer

Sometimes that great job opportunity comes with a price.For example, Bob who now lives in Houston and finally gets his big break.This new job opportunity will require him to move to Atlanta.Bob accepts the new position and moves to Georgia without first selling his house in Houston.

The mistake Bob makes is buying a new house in Atanta.The two mortgage payments cripple Bob financially and suddenly the new job opportunity crushes him.Poor little Bobby.

5. Drug and alcohol abuse

When you’re high on drugs or drunk all the time, it’s kind of hard to remain productive.When someone let’s this sickness in, it’s all down hill from there. 

So when it comes to buying investment property, look for and monitor these particular seller situations.When a seller cannot solve their house problem, come to the rescue and offer a good solution.  You will be rewarded after you help others first.

Look for these seller situations in your future real estate investing efforts and you will be handsomely rewarded.  I promise.

With more foreclosures now than ever before, America’s weak real estate market seems to set new dismal records each month. But challenge always gives rise to opportunity, and opportunistic real estate investors are rising to the challenge.

The new opportunity is known as ‘Bulk REO Investing’ or ‘REO Package Investing’ and it’s a huge opportunity.

Foreclosures are at the heart of the Bulk REO business, so let’s consider the foreclosure process.

Understanding the notion of Bulk REO’s requires understanding of the foreclosure process.

As a home owner misses a payment or two, the lender sends the predictable barage of threatening letters and warnings. The official foreclosure proceedings begin subsequently, as directed by the lender. From that time through public auction is called ‘preforeclosure’.

Foreclosure is completed when the defaulted property is auctioned. If there are no buyers at the foreclosure auction, the lender regains title to the property. Such a property is then classified as an ‘REO’ (Real Estate Owned) by the lender.

REO properties are usually listed for sale with local real estate agents. Yet with increasing frequency, REO properties are being sold for pennies or dimes on the dollar. But the price of receiving such great pricing is the need to purchase multiple REO properties (a ‘package’) rather than individual properties.

The recession in the United States has yielded huge profits to real estate investors prepared to take advantage. REO packages are easiest to buy and sell with a well regarded source of financing in place. Some sources of funding for these transactions are: personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Sal Buscemi of Dandrew Capital Partners, a New-York based hedge fund.

The recession in the U.S. economy has resulted in more foreclosures than experienced by any other generation of Americans. Yet as always, this challenge has given rise to a huge new opportunity for alert real estate investors.

The real estate investing strategy du jour is called ‘Bulk REO Investing‘ and is a real monster.

Foreclosures are at the heart of the Bulk REO business, so let’s consider the foreclosure process.

Understanding of the foreclosure process is central to understanding Bulk REO investing.

Mortgage lenders faced with a non-paying home owner send a large volume of threats, warnings and documentation to the borrower who is late. Following a period of time determined by the lender, formal foreclosure proceedings begin. Between the formal beginning of the foreclosure process and the public auction is the ‘preforeclosure’ period.

Foreclosure is completed when the defaulted property is auctioned. Ownership of the property is returned to the lender if the property is not sold at auction. The lender then categorizes the property as ‘Real Estate Owned’ – or ‘REO’ for short.

REO properties are usually listed for sale with local real estate agents. Yet with increasing frequency, REO properties are being sold for pennies or dimes on the dollar. This happens because the buyer of the REO is required to purchase multiple REO’s in a single transaction.

The REO investment packages available today have provided a way to profitably capitalize on the U.S. recession. REO packages are easiest to buy and sell with a well regarded source of financing in place. There are many sources of funding for these transasactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and private investors. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Salvatore Bushemi of Dandrew Capital Partners, a New-York based hedge fund.