February 2009

Investment Exchange

An educational real estate newsletter

FARMING FORECLOSURES IN YOUR OWN BACKYARD

If you live in a neighborhood with foreclosures dotting the streets then chances are you aren't alone. In fact, many areas throughout the United States have become veritable ghost towns as the number of foreclosures continues to rise across the country.

Not for long.

Many real estate investors are pleased ... and for good reason: The current housing market represents a great opportunity to get in while the prices are at record lows and ride the eventual upswing to some serious investment profits.

Unfortunately, the getting is so good right now that even some experienced investors are getting too hasty, buying up properties that they could have trouble selling down the road, including once the market rebounds. Therefore, it's important to do your due diligence before committing to any major investment, including property.

With such low prices, it's easy to forget that there are more things to consider than just the price tag. You'll want to investigate just how much cash you'll need to get the house in sellable condition and, of course, you absolutely must remember the cardinal rule of real estate:

Location, location, location.

Yes, there is undoubtedly great potential in some of the foreclosures you've noticed lately, but there are just as likely some duds, too. This month's edition of "Investment Exchange" is dedicated to helping you sort out the good, the bad and the ugly.

In this or any other market condition, you need investment savvy to put you on top of the game. So get ready to become the neighborhood expert at deciphering which properties are worth your time and money and — just as importantly — which are not.

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Site feature spotlight

Deals are in the details

Foreclosure listings are valuable — homebuyers and investors can save up to 50 percent or more off current market value. That's not an exaggeration ... especially in these economic times.

We have deals come through our system, which we update at least twice each day, that are an astounding 100 percent or more under value.

That's just the tip of a very large iceberg.

But just because a home is dirt cheap doesn't mean it's a bonafide bargain — there are "money pits" out there that might be steals at closing but headaches down the road.

So how can you tell the difference between the deals and the duds?

Put simply, you need to do your homework. The good news is that for the most part we at Foreclosure do all the heavy lifting and digging for you.

Our nationwide database of more than 1.8 million real estate listings is the most comprehensive and detailed resource that you will find anywhere. We provide our site visitors with the latest information on all the properties that we list, including data from property tax rolls, lender files, local school districts and so much more.

More than ever, smart investors see the value of getting their hands on as much information as possible before committing any of their dollars to an investment property.

In the foreclosure market especially, it's essential to know historical property value fluctuations, demographics associated with neighborhood residents, crime statistics, local school quality and availability ... and the list goes on.

Foreclosure.com has all of that information at your fingertips and more.

New and experienced investors alike can now experience the reassurance that comes with having all the information necessary to make a confident and profitable real estate investment decision.

To see what all the buzz is about just do a quick search on Foreclosure.com and you will see the extensive details that we can provide to give you a leg up on the competition. Even better, Foreclosure.com is free to search for seven days! No strings attached — you have nothing to lose and everything to gain. Click here.

It's yet another way that Foreclosure.com has raised the bar to provide its members with innovative service that translates into cash in the bank.

The value is in the details.

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Web site search tips

MAp deals on foreclosure.com

We've all done it: located a ridiculously "underpriced" property on the Internet, scrutinized the photos a million times, fell in love with the floor plan, imagined the renovations and salivated over the profits ... only to drive by and discover it's in the worst neighborhood imaginable.

It's a disappointment that almost all of us have lived through, but the reality is that a decent property in a less than desirable location is usually not worth the money no matter how cheap it is.

Yes, of course, there is the occasional fixer-upper with lots of potential in a neighborhood that's just about to be redeveloped by the city. However, these can be extremely risky investments that often aren't worth the time it takes for property values to finally rebound.

To alleviate this issue, Foreclosure.com is doing what it can to help you figure out the neighborhoods before you ever leave your computer.

Our distressed real estate listings now have improved maps and neighborhood photos to help you determine exactly what kind of area a property is in, whether it's a nice family area near parks or next to a commercial zone.

Each listing features not only scrollable local maps, but also bird's eye neighborhood views, aerial shots and satellite images of the street from several vantage points. You can toggle in every direction — north, south, east and west — to get a true feel for the area.

It's the perfect way to get to know any neighborhood across the nation, getting a real taste of the areas in which potential investments are located without taking time out of your busy schedule to actually drive there.

Of course, if a property meets your criteria from the maps, satellite shots and photos, you'll want to go take a look in person to make sure what you've seen is what you'll get. (Check out this month's "Real Estate Tips" section to learn more about scouting out properties in person.)

Nevertheless, these new features are just what you need to know what you're getting into — or getting away from — before you go see for yourself.

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Hot off the press

FORECLOSURE MORATORIUM
EXPIRES soon

The beginning of February marks the end of the moratorium Fannie Mae and Freddie Mac had put on foreclosures late in 2008.

The moratorium temporarily prevented foreclosure sales and evictions for mortgages that fell into default. It was hoped that the resulting drop in foreclosure rates would discourage future foreclosures in an already struggling U.S. housing market.

Perhaps unsurprisingly, it was nothing but a temporary stall — foreclosure rates are still expected to spike this month despite legislative efforts. Economists say that climbing unemployment rates are making it even harder for people with unaffordable mortgages to make their monthly payments.

The moratorium briefly helped some 16,000 borrowers deemed to be in trouble by Freddie Mac and Fannie Mae. Its expiration is expected to impact those same borrowers, plus the additional thousands whose mortgages have fallen into default since the inception of the moratorium last November.

As a result, investors can likely expect a sudden and dramatic increase in foreclosure listings at courthouses, in newspapers and, of course, on Foreclosure.com.

More than ever, investors will have to do their homework to ensure they're buying properties that suit both their wallets and their investment personalities. Foreclosure.com can help with any investment questions, including how to sort the good deals from the bad.

Economists are unsure whether this is the last of the foreclosure spikes expected as a result of government intervention. The hopeful climate associated with the Obama administration has yet to show any concrete results in the way of an economic turnaround.

This means that, at the very least, real estate investors can look forward to a February flood of new foreclosure listings. After that, the number of new listings is predicted to continue climbing, albeit at a slower rate, as investors and homeowners alike await the government's next move.

Strike while the iron is hot and get these new deals emailed to you direct at no charge with FREE Foreclosure Email Alerts from Foreclosure.com.

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Our success stories

HOWARD SMALL MAKES A BIG IMPACT

Howard Small first realized how much money could be made in real estate investment after closing the deal on his own home.

It was this small introduction into the industry that got the ball rolling. First, it was buying and renting apartment buildings with creative financing he learned from books; then it was foreclosure and preforeclosure properties.

Howard's expertise has developed over the years through extensive reading and, of course, trial and error. Today, it's Howard who's writing the books and educating others on the best ways to make money in real estate investment.

That's the reason we're proud to welcome Howard back to present another Webinar for Foreclosure.com visitors who are hungry to learn and make money hand over fist. The FREE training presentation is called " Get Rich Buying Real Estate Foreclosures" and it promises to be an informative, enlightening hour for anyone who wants to get in on the foreclosure game.

Howard's Webinar will cover:

• Which properties are best in which neighborhoods
• Where the real money potential lies
• How to buy and market foreclosures for quick, lucrative sale
• Finding financing and negotiating like a real pro... plus much more!

Howard's attraction to foreclosure and preforeclosure investment has, in many ways, eclipsed his other real estate investment methods because of the sheer amount of profit even a single sale can generate.

In fact, Howard — and his prot??g??s — regularly make $20,000 and up on every foreclosure transaction they complete, simply by knowing how to buy low and market a property for quick sale ... even in today's tumultuous economy.

All of this is detailed in Howard's upcoming free Webinar, which you can register for today right here. The information he'll share in just one hour could literally make you tens — even hundreds — of thousands of dollars.

Foreclosure.com wants you to know Howard's secrets so badly that we're thrilled to present Get Rich Buying Real Estate Foreclosures for absolutely ZERO cost. So sign up today for a chance to reserve your virtual seat at Howard's limited-space Webinar.

In addition to the free training, you'll get a one-week full-pass membership to our entire Web site, including total access to all of the foreclosure listings in your area, for no charge. That means that you could get in on Get Rich Buying Real Estate Foreclosures for absolutely nothing!

Howard's Webinar happens Feb. 19, 2009, at 7pm ET / 4pm PT. Register today before it's too late! Click here.

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Real estate tips

GET THE INFO AND
RUN WITH IT

Attention all you joggers out there: Your morning run may be all you need to get to know a distressed property's potential!

Okay, maybe it's a bit of an exaggeration, but the reality is that going for a short run, bike or drive can be the perfect way to get to know a neighborhood before you commit to investing.

Like we mentioned in this month's "Web Site Search Tips" section, Foreclosure.com's maps and satellite images can give you a pretty good idea of what you're getting into, area-wise, with a given property.

However, they can also help you take your research to the next level by actually mapping out the areas around a property you'd like to explore.

For example, are there schools or shopping close to the property? How close are the nearest housing projects or factories? Is the property within walking distance of parks or playgrounds?

These are all questions that can be very valuable when it comes not just to investment decisions, but also to potential buyers when you're ready to sell.

Basically, you want to ask yourself whether people would want to live in a given neighborhood and why. Be as objective as you can and limit yourself to a given radius. In other words, if it takes you 45 minutes to drive to the supermarket, it might just be too far.

This is also good advice when you're scoping out the foreclosures in your own neighborhood. It's so easy to get caught up searching for properties that you gradually push your outer limits even further, block by block, until you're way out of your original search radius and have more properties to look at than you can handle.

Use Foreclosure.com's maps, community information and a little discipline to avoid this situation. Choose a guideline that you're comfortable with (i.e. a 20-block radius or 35-minute drive) and stick to it. This strategy will both save you time and help you focus your search to only the properties that most appeal to you.

Either way, you're sure to find our maps and neighborhood data an extremely useful tool in your real estate belt. It's the smart investor's way of finding those investment gems that are just waiting to pay you big dividends.

Just remember that your fruitful journey always starts at Foreclosure.com.

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Linda's Learning Lane

You reap what you sow!

In this month's issue of the "Investment Exchange" we have taken you through suggestions and tips that will make your search for the right property an easier one.

Like any farmer will tell you (and I come from a long line of them), it takes many ingredients to make the harvest fruitful.

Real estate is no different.

First it takes commitment — you need to search your neighborhood and Foreclosure.com on a consistent basis. It also takes knowledge. How do you determine a deal from a dud? Next, it requires constant care to produce a great crop. Accordingly, as you spot potential deals you need to be disciplined and follow up on them.

There are many different types of farmers. The principles to farming are universal, but the individual styles may vary.

One of the ways that I practice on a daily, weekly and monthly basis (besides checking Foreclosure.com) is tied to my physical exercise routine. As I either cycle or run through my neighborhood I am always checking for the next tell tale signs of a great deal.

And they are everywhere! You just need know where to look, open your eyes and??be ready to exercise the power of knowledge when opportunity presents itself.

So keep feeding your minds or fertilizing your farm and you will soon enjoy the fruits of your labor!

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