February 2010

Investment Exchange

An educational real estate newsletter

RENT VS. OWN

To rent or to own, that is the question.

In theory, buying is always better than renting because at some point you will own your house outright whereas renters are perpetually filling the pockets of someone else.

In reality, it can be tough to make the leap from renter to owner. A lot of factors come into play: Do you have a big enough down payment? Will you qualify for a mortgage? Can you afford maintenance? For how long do you plan to hang on to the property?

Another big concern right now is what the market is doing. We're anticipating a bounce-back, but haven't seen any significant strides upward just yet. If you're planning to flip, you may have to wait awhile before it's worth the time and money.

On the other hand, a huge plus for buying right now is that prices and mortgages have never been cheaper. People who don't act on these incredible deals might just kick themselves in the very near future ... hard.

Ultimately, real estate will always be one of the soundest investments, which is the reason if you can buy, you should. This month's newsletter is all about helping you figure out what you can afford and how to get your hands on it.

As always, Foreclosure.com is here to help you with your search!

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Site feature spotlight

NEW-LOOK EMAIL ALERTS

Foreclosure.com's patented search engine is the best in the business.

Thanks to our award-winning technology and design teams, our search capabilities have not only improved, but look nicer, too.

Yes, our search tools can help you pinpoint properties with ease. However, we wanted to take even more of the legwork out of it for you.

Introducing Foreclosure.com's redesigned, relaunched email listing alerts.

What's so great about them?

• They are absolutely 100 percent free all day every day. For zero dollars you can get a customized email every day that lists all the properties in a desired area. And keep getting it until you say stop or find the deal of a lifetime waiting for you in your inbox.
• They're super easy to create. Just input a preferred zip code, select which types of properties you want to hear about and add your email address. Click here to get started.
• You can make as many as you want. If you're interested in several zip codes, that's no problem. Get a targeted email for each area of your search.

Best of all, your listing alert will automatically make you among the very first to know about new properties that may be of interest to you. That gives you a serious leg up on the competition.

Our alerts are fast to set up and easier than ever to read and use. Foreclosure.com's email listing alerts are hands-down the best way to find new properties before someone else does.

Don't miss out on the deal of a lifetime. Get started now.

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Web site search tips

POWER SEARCH — FIND ONLY WHAT YOU NEED

"Not all buyers are created equal" and "time is money" — two catchphrases that were never truer.

In today's market, you need to act fast to get in on these great deals before they're gone. Your dream house could be listed and auctioned off without you having ever laid eyes on it.

That's how fast the best deals get cherry-picked in this type of buyers market.

However, that doesn't mean you should buy just anything that comes your way. Inventory is still large, which means you can afford to be a little picky.

Just don't get greedy!

For these reasons there is simply no point in sifting through listings that don't fit your criteria. It slows you down and could ultimately cost you the property you were meant to have.

That's why Foreclosure.com has designed its proprietary "Power Search" to help you find only the properties that meet your exact specifications.

"Power Search" lets you see only the properties you want — no one-bedrooms if you need three; no auctions if you only want foreclosures; and no prices that are simply not within your budget.

You're just a few easy clicks away from checking out the exact properties you want:

• Step 1: Visit the Foreclosure.com homepage and use our interactive map to find the geographic location in which you want to buy.
• Step 2: Customize the "Power Search" options, which are located above your search results displayed on the screen. Select your desired city, beds, baths and price range.
• Step 3: Click on "Search Options" at the right to only include certain types of properties in your results (preforeclosures, bankruptcies, FSBOs, etc.).

That's it!

After you've clicked the orange "Search" button, you'll instantly be directed to all available listings that meet your criteria. That means no throwing away time or money on properties that simply don't fit.

It's perfect for those who want to squeeze in as much quality searching during our FREE 7-Day Trial.

Remember, buyers are not alike. Everyone has unique property ownership goals. Use Foreclosure.com's "Power Search" features to reflect your own personal buying style.

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Hot off the press

FORECLOSURE ACTIVITY DOWN

Foreclosure filings were overall down in Jan. 2010 from the previous month, giving hope that the New Year would signal the shift in an unfortunate trend that has gripped the nation.

However, this number is still higher than Jan. 2009.

Are we finally coming out of the economic slump or is this just history repeating itself?

Only time will tell. Holiday moratoriums, as well as loan modifications, short sales and other factors, could have had an impact on the most recent promising statistics.

In addition, the recovery of the housing market is closely tied to the recovery of the economy in general, which means that improvement is only likely once unemployment rates have gone down and mortgage finance companies have stabilized.

In the meantime, historically low prices still hold a lot of appeal for homebuyers and investors. It's a great time to get in on the market, especially if you've got the means to stick it out for a bit until the market improves. Undervalued properties today can mean big bucks in the future.

If you're interested in checking out what properties are available in your neighborhood, check out Foreclosure.com today and search for free.

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Our success stories

THANKS LINDA!

Foreclosure.com's Director of Education, Linda Yates, was in Nashville, Tenn., on Jan. 15, speaking on a panel of real estate experts during a portion of the Stellar Awards entitled "Saving the Dream of Homeownership."

It was just the latest of many pit stops nationwide for Linda, who has become increasingly popular as more and more investors, buyers and agents learn about our invaluable training opportunities.

"The clock is ticking to capitalize on the best real estate conditions buyers and investors have come across in literally decades," she said. "Record-low home prices and interest rates, as well as limited-time government tax incentives, have created the 'perfect storm' for future homeowners."

Linda's expertise is hands-down what has made the Foreclosure.com Education Department what it is today.

Although our Education Department hasn't yet reached its third birthday, its success has had a big impact on the distressed property industry.

You can learn all about the foreclosure process from A to Z, get expert tips on financing, uncover how to navigate any distressed property situation and much more.

Our On Demand Webinar database has become one of the premier online sources for affordable, accessible property investment education. And it's growing all the time. You can find exactly what you need to make your purchases easy and profitable.

You can also become a part of Foreclosure.com Agent University, Linda's latest educational achievement, which trains agents in the skills they need to become distressed property experts.

Foreclosure.com's Education Department would simply not be what it is today without the expertise and insight of Linda Yates.

Thanks, Linda!

Mark your calendars: Agent University will soon provide 100 of ERA's top agents with our Certified Foreclosure Agent (CFA) training in Nashville as a precursor to their national meetings at the Gaylord Hotel.

Thousands of ERA agents and brokers will attend their annual conference to get the most up to date information in the business. Remember that broker owners and managers enjoy even bigger discounts for groups of 10 or more.

Contact us at 866.382.4445 for more details on bulk pricing savings.

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Real estate tips

RENT OR BUY?

Buying property is an exciting — and sometimes scary — proposition.

Although the market is hotter than ever, you still should equip yourself with solid information and do some serious number-crunching before you make any commitments.

In a rent-or-buy scenario, it's important to consider all the factors. After a certain length of time, buying will always be better than renting, but if you'd like to buy and then sell in a relatively short amount of time, you need to be careful.

It's fairly straightforward to calculate how much renting costs. Simply multiply your monthly rent by however long your time period is and add a percentage to account for rent increases.

When you're buying, you need to take into account how much your interest payments will be because, like rent, that's money you can't get back. Figure out how much equity you'll be putting into your property and how much you expect it to appreciate over your time period.

Property values usually trend upward, so the longer you hang onto a property, the safer the bet becomes. That's especially true right now, when prices are at unprecedented lows and a quick rebound in the economy doesn't seem likely.

To help you do the math, check out Foreclosure.com's handy Rent or Buy Calculator.

Simply input your estimated numbers and let the software take care of the rest. It's the easiest way to see whether renting or buying in your personal scenario is the most profitable.

Always remember that Foreclosure.com is here to help. Visit us today to get your property search started.

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Deals of the Month

HOT FORECLOSURE DEALS!

Andover, KS
$55,000
3 beds/2.5 baths
1,368 sq. ft.

Springfield, KY
$97,996
3 beds/2 baths
1,668 sq. ft.

Rose Hill, KS
$224,900
3 beds/2 baths
2,497 sq. ft.

Linda's Learning Lane

SO MANY CHOICES!

Some may say in this economy it's a crap shoot on whether to rent or own a house.

The "American Dream" has always been homeownership and the last several years many who were never able to realize that dream were finally able to.

There is a lot to consider as you look at these choices. Freedom is an individual perspective, where I may find
freedom with the ability to travel and not have to worry about maintenance to a home or yard you may define freedom as knowing that you own a piece of land.

Neither scenario is wrong or right. It's the preference of the individual that matters most.

Often, we let our emotions rule us, but if we can analyze the pros and cons to a financial decision we will be happier in the long run.

You may find that owning right now is not the best scenario — that's okay and it doesn't mean that will always be the case. For others, this may be the perfect time to invest or repeat investing because of market conditions.

Speaking to professionals who are objective can be a great tool and help a great deal.

When selecting those individuals be sure to get references. Some suggested professionals would be financial planners and CPAs. These professionals are typically objective and can help you look at YOUR entire financial situation so that you make the best decision for you.

Life is a gift and there are opportunities galore that will bring joy now and in the future. You have the tools to capitalize on those opportunities. The choice is yours.

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