May 2009

Investment Exchange

An educational real estate newsletter

PROSPECTING FOR GREAT DEALS

What makes a great real estate deal?

It sounds tired and clich??, but the tried and true adage of "location, location, location" still rings true today. Indeed, if you're going to get into the foreclosure game, you've got to do your homework and buy smart.

Of course, a killer location is meaningless in terms of profit margin if you overpay. So you have to price it right and find a below-market deal, as well as finance your purchase on the cheap if and when possible.

And that should not be a problem ... especially right now.

That's because this is an unprecedented time in the Untied States real estate market. Housing prices have hit rock bottom, mortgage rates are at all-time lows and the market is literally saturated with awesome housing options.

It's very possible to get the pick of the litter!

What's more, the current housing situation has put so many gems on the market that many don't even need cosmetic upgrades — all you've got to do is buy, market and sell for handsome profits.

As if the good news for buyers couldn't get any better think again!

Remember that the government is offering tax incentives for first-time buyers. If you fall into that category, you could stand not only to make thousands of dollars on your foreclosure investment, but also save thousands on your tax bill to the tune of $8,000 Benjamins.

Talk about a great deal.

Now more than ever, the American Dream is ripe for achieving. In short, there has never been an easier, more exciting and lower risk time to buy. Imagine transforming your existence into a financially care-free and personally successful life that far exceeds any expectations you ever had for yourself and your family?

That's the life that is waiting for you thanks to the current real estate conditions.

So read on in our latest edition of "Investment Exchange" to learn the ins-and-outs of "Prospecting for Great Deals" in your area. And be sure to visit Foreclosure.com today to learn more about paving your golden road to personal and financial freedom.

These conditions can't last forever ... the time to act is NOW! Just be sure to prepare yourself for an exciting ride and slip on those sunglasses because the future has never looked brighter!

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Site feature spotlight

THE RIGHT TOOLS
FOR THE JOB

You're bound to come across hundreds — even thousands — of enticing deals on Foreclosure.com if you take advantage of our no strings attached, FREE 7-Day Trial. If you decide to stay on longer, which most of our site visitors do, then the possibilities are truly endless.

Let's dig a little deeper to determine how you can choose which deals best fit your investment style, goals and time frame.

A quick way to narrow down your prospects is to take advantage of our "Tools" section, which is easily accessible from every page on Foreclosure.com. Just go to the bottom navigation pane on any page and click on the "Tools" link. From this location, you can select from a variety of useful features that were created to make your investment experience that much easier.

For example, our calculators will help you determine which deals make good financial sense and which are a little more risky. We have calculators for:

• Mortgage Home Loan Costs
• Renting vs. Buying
• Mortgage Refinancing
• Mortgage Home Affordability
• Fixed vs. Adjustable Rate Mortgages
• Down Payments and Mortgages
• Home Equity Calculator

These calculators and more are available to help you crunch the numbers without a degree in financial accounting. No fuss! Just easy access to important information, inching you much closer to closing your big money-maker deal without stress or headaches.

You'll also benefit from our FREE email alerts. Simply input the zip codes you're interested in finding hot real estate deals and Foreclosure.com will send you the newest listings that match your criteria every single day. We update our Web site at least twice each day, which is more regularly than any other site on the Internet, so our e-mail alerts are the perfect tool to keep you ahead of the game.

Another helpful tool is Foreclosure.com's Agent Finder. We've got current and accurate details for nearly 10,000 agents and brokers throughout the nation. We've also included tons of helpful information on how to find the perfect agent to join your team — the right one will be the ace up your sleeve when you need solid investment advice.

That's not all. Far from it!

You'll also love our links page, which will help you find additional people and organizations to help you with everything from property listings to contractors to mortgages to financial advice. These links are reputable sites, trusted and endorsed by the number one source for distressed property information, Foreclosure.com.

Finally, visit our site map whenever you need at-a-glance information about getting around the site. You may find even more practical features and helpful articles that you never even knew we offered!

It goes without saying that to do a job right, you need the right tools — a plumber would never dare to show up for a service call without a box full of wrenches. Likewise, when it comes to real estate investing and prospecting, knowledge will turn out to be your most effective tool.

So put Foreclosure.com's tools to work for you and your distressed property investment goals not just now, but every day to come.

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Web site search tips

GET YOUR Zestimates® NOW

What exactly is a Zestimate®?

For distressed property investors, it's the best thing since sliced bread. Simply stated, a Zestimates® is a calculation that shows you how much money you could make on a given property.

Of course, Zestimates® can't predict the future with 100 percent accuracy, but behind each one is a plethora of historical data, statistical analysis and complex mathematical formulas to determine those properties that are overvalued, undervalued and right on the money.

Zestimates®, which are conveniently located on the details pages of nearly all the 1.8 million listings on Foreclosure.com, are perfect for giving you quick information about whether a property is worth a closer look. For example, if you're checking out a three bedroom in a nice area that's listed at $100,000 and the Zestimate® tells you it could be worth as much as $275,000, that's a $175,000 difference that could mean serious cash in your pocket.

It's instant equity!

Zestimates® are available for each of the hundreds of thousands of foreclosure listings in our database, which means you've got instant access to the most important info you need: profit potential. The right information fast is what you need to stay on top of the action in a game this competitive.

Speaking of fast, you'll also like the "Saved Listings" feature you'll see at the start of every listing you find. When you see properties the pique your interest — and the Zestimates® provide you with hefty equity spreads — simply click the "Saved Listings" star to put the listing on your to-be-followed-up list.

Then, when you're ready, you can go back to your "Saved Listings" and dive into each one with a little more scrutiny.

This feature makes it much easier to compare the properties you like and narrow your list down to the prospects with the most potential ... because time is money, and never was this as true as in a foreclosure market this red hot!

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Hot off the press

DON'T MISS YOUR
TAX CREDIT!

First-time homebuyers should be very excited — the recent announcement of an $8,000 tax credit is great news.

Why?

Unlike its $7,500 predecessor, this tax credit does not have to be repaid. Furthermore, you may be eligible to get the cash even if you don't owe the government any taxes. Also, you don't technically have to be a first-time buyer; as long as you haven't owned a home in three years, you're eligible.

It's valuable cash in hand that can make a big difference both in your personal life and in your investment career ... so don't miss out!

So how do you get the $8,000 tax credit? It's simple.

First, make sure to file your tax return. If you complete the purchase of your home before May 15, 2009, you can claim your $8,000 on your 2008 tax return. If you purchase(d) your home after that time — up until Dec. 1, 2009 — you may apply for the credit on your 2009 tax return.

In order to file your return properly, you'll need to fill out Form 5405, which you can access through the link right here. The form helps you calculate your tax credit, which you need to include on line 69 of Form 1040, your individual income tax return.

Factors that affect your tax credit amount include the price you paid for the property, when you bought it and your gross income. Regardless of these factors, however, you are not required to pay back the credit as long as you keep the property for three years.

There are no restrictions on what you do with the money, either. Use the cash to rehab the property, pay down the mortgage or even put it toward a new investment.

Three years isn't that bad, either. Economists still aren't sure how quickly the market is going to rebound, so if you can afford to get $8,000 to carry a super cheap house for 36 short months, you could stand to make tens — even hundreds — of thousands of dollars.

It's essentially free money for nothing more than a little bit of paperwork, so make sure you cash in on your $8,000!

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Our success stories

BE OUR NEXT
BIG SUCCESS!

Foreclosure.com is proud of its legacy of individuals who got started on the real estate investment path with nothing more than a dream and then had the passion to turn those dreams into cash using our secrets to success.

Take Paul, who says, "I'm at the point now where I'm making million-dollar deals and not thinking twice."

And Ron, who says, "I'm making money hand over fist, purchasing, renovating and selling distressed real estate to the tune of up to three properties per week."

And Tom, who says, "Now I've finally got the tools to start making some money!"

In fact, we have so many members who've gotten rich flipping foreclosures that we've lost track of how many people we've helped.

There's no reason to stop now!

We want you to be our next big success story! If you've been thinking about getting involved in real estate investment then now is the time! The market has literally never been more perfect for new and experienced investors alike.

The number one reason that people hold back from getting started on their path to riches is simply that they don't know how to get there. Well, that ends now. Foreclosure.com has all the information you need and more to get you off and running.

The perfect way to learn everything you need to know to invest like a pro is to get involved in our premier investment course, "Get Rich Buying Real Estate Foreclosures." This six-CD/DVD course contains the essentials in a practical, easy-to-understand format designed to get you investing in no time.

The course is broken down into manageable chunks so that you can learn at your own pace and spend extra time on the areas that most intrigue you. Learn all about:

• Preforeclosures, sheriff sales, and REOs
• Finding the financing you need to get the property you want
• How to get a "yes" when talking to distressed property owners
• Renovating to get the most 'wow' factor on a dime
• The negotiation techniques of the industry's top performers
• ... and so much more!

You'll also get more than 30 forms, checklists, contracts and other documents to get you rolling, as well as an investors glossary and a bonus DVD featuring the guru who began the dream for so many, Foreclosure.com Founder, President and CEO, Brad Geisen.

As Brad says, "Hands-on experience is the best way to learn any business, but it helps to have the right tools to get you started."

With a market this hot, you can't help but be inspired to turn your investment dreams into reality. Learn how to do it while avoiding the pitfalls and making a killing with "Get Rich Buying Real Estate Foreclosures."

...and don't forget to participate in our Success Stories Contest! We want to reward you even ... further for using Foreclosure.com to realize your investment dreams. You could win a $500 gift card to Home Depot, free Foreclosure.com access and much more!

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Real estate tips

CONNECT WITH YOUR LOCAL EXPERT

When it comes to property investment, the temptation exists to go it alone in an effort to earn top dollar.

This is a common mistake among aspiring investors because they simply don't realize the value of having a solid team behind them.

Community Experts are one of the most important assets on your investment team. Not only can they help you find deals and give you the scoop on the neighborhood, but they also provide support, trustworthy contacts and actually save you money ... and lots of it.

That's right, community experts have the insider's information on the best deals in an area. They can find you properties that are so far below market value that your expert's commission will more than pay for itself in the money you're saving right off the bat.

Your local community expert will also help you negotiate any tricky situations, including issues with the distressed property owner, contract details and more. This service is invaluable, especially if you're new to the investment business. If you aren't sure of the best way to handle something, trust your community expert to do the heavy lifting for you.

How do you find your community expert? Simple: Foreclosure.com.

On every listing page, you'll find the name and contact details for a person in that area who is experienced, reliable and in the know, so once you've found a property you like, you've got an instant connection to the person who can help make your dream a reality.

You can also do a search from Foreclosure.com's home page in the "Find an Agent" box. Simply input your desired zip code and a list of the best and brightest in the field pops up for your convenience.

It can't be said enough: don't try to succeed alone. The wealthiest investors know that they couldn't have gotten where they are today without the help of their team, including Foreclosure.com and their trusted community experts.

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Linda's Learning Lane

LOCATION, LOCATION, LOCATION!

Have you ever gone camping and had to search for the perfect spot?

Those same principles apply to searching for real estate. We attribute value based on those things that hold significant meaning for us. Some individuals like the hustle and bustle of a downtown environment where others want their space from their neighbors.

The seasoned investor understands that location is key to success.

When they see a particular property come on to Foreclosure.com through their FREE email alerts they understand very quickly what is and is not a great deal. Just as location and its desirability can vary in a community so can individual markets. For example, properties that are on or near the water will always draw buyers in any market. The same holds true for golf course communities.

Therefore, determining what market and location you are interested in buying should be given a great deal of thought and consideration. That being said, don't let paralysis by analysis occur. Knowledge is only powerful when it is applied knowledge.

So what are you going to do today to move you toward your investment goals?

Keep searching Foreclosure.com and spend some time in our On Demand Webinar section to increase your understanding of real estate investing. By having your real estate radar turned on you will be able to spot those great deals and "stake" your spot in a prime location.

Happy camping!

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