September 2011

Investment Exchange

An educational real estate newsletter

DIAMONDS IN THE ROUGH

Buy low, sell high. That's fundamental underlying key to success in virtually every investment arena.

But how do you go about it? Where do you start?

In real estate investment, it's all about honing your detective skills to spot those diamonds in the rough before your competition does.

Distressed properties are often in less than tip-top shape, but it's that shabby exterior that is concealing the massive opportunity for riches for those investors who know how to take advantage of great deals when they see them.

Spotting a diamond in the rough isn't difficult, but it does take the right knowledge and an open mind. You need to be able to see past the unsightly condition of a home that has turned off other investors to determine if it is really worth your while.

And because not every shabby property has the potential to be a cash cow, you must be careful about where you choose to invest.

This month's newsletter is all about training you to find and capitalize on those diamond-in-the-rough properties that are just waiting for an investor like you. The potential financial rewards will be well worth your time.

Are you ready? Let's get started!

Site feature spotlight

SELLING LIKE A PRO

We're excited to tell you about our newest upcoming live webinar that will be all about getting your properties sold faster.

This live event is happening on November 17, 2011 at 8:30 p.m. ET. Sign up now so you don't miss your chance to secure a spot!

This important webinar is your opportunity to learn the hidden psychology behind selling a house. Instructor Joe Gaeta will reveal the best ways to convert "browsers" into "buyers."

This insider information is especially crucial in this new era of technology, in which homebuyers typically spend hours poring over property listings online before ever setting foot in an actual home for sale. As a seller, you need to be able to capture a potential buyer's attention and connect with them through the listing before your agent even has a chance to say "hello."

During this must-see webinar, Joe will cover:

• What consumers want when searching online
• How to "dress up" your online property listings
• How to get consumers to "buy in" online, before seeing your property in person
• Staging your home or leaving it empty — which is your best bet

Joe Gaeta has been entrenched in the world of real estate since 1999, when he discovered the perfect outlet for his talents as a salesman, educator and motivator. Today, Joe dedicates his time to the real estate industry as a speaker, trainer and coach who specializes in helping people leverage technology for their own success in real estate.

To ensure maximum quality, we have limited availability for Joe's webinar. Sign up as soon as possible to reserve your priority spot and avoid disappointment.

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WEBSITE SEARCH TIPS

TAX LIENS — YOUR UNTAPPED PROPERTY SOURCE

Want to make serious cash investing in distressed real estate?

When most people think about distressed property investment, they immediately think about foreclosures and short sales.

Of course, foreclosures and short sales do represent very lucrative investment opportunities, but if you would prefer to invest in an arena with less competition, but just as much profit potential, we encourage you to consider looking at tax deed sales and tax lien sales.

Tax defaulted properties are another excellent source of high quality distressed properties and you can learn all about them — and check out current listings — on our sister site, TaxLiens.com.

Hot off the press

FORECLOSURES UP BUT DELINQUENCIES DOWN

In Florida, the foreclosure climate appears to be changing.

Foreclosure rates are still climbing — albeit by much smaller intervals — but the actual number of delinquencies is on the decline, at least for now.

Results from a recent statistical analysis show that the June foreclosure rates in the area climbed to 12.4 percent, a small 1.2 percent increase over June of the previous year.

However, the actual rate of homeowners who were at least three months behind on their mortgage payments fell. The June 2010 rate was 18.2 percent whereas the June 2011 rate was only 17.6 percent.

Some economists are speculating that the delinquency rate is tapering off because more realistic mortgage options are now available and the fact that it is more difficult to qualify for a home loan than it was when the mortgage crisis began.

Similarly, experts estimate that the foreclosure rate gains are getting smaller and smaller due to the fact that there are fewer homeowners losing their homes because of the mortgage crisis than there were when the sub-prime lending scenarios first began to unravel.

Distressed property investors who are still hoping to score amazing foreclosure deals should sit up and take notice. As the housing market continues its journey toward stabilization and strengthening, those diamond-in-the-rough amazing property bargains will begin to dissipate.

Avoid missing out on the deal of a lifetime by beginning your distressed property investment career now. Whether you're buying a forever home for your family or looking to buy and sell distressed properties for easy profits, you need to get started immediately before all the best foreclosure deals are gone.

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Our success stories

CARL AND MICHELLE KENDALL MAKE IT HAPPEN

Carl and Michelle Kendall take customer service very seriously. In today's volatile housing market, they work hard to get the job done for each and every buyer and seller who comes across their desk.

A South Florida real estate team with a lot of distressed property experience under its belt, Carl and Michelle believe that staying educated and keeping current is the best way to succeed in finding that perfect distressed property.

"Contact or interview at least three Realtors who are experienced in this realm," advised Carl. "If your agent has never sold a distressed property, he or she may not be the best choice to represent you."

Carl and Michelle have been buying and selling distressed real estate for six years. They have had short sales approved in just one week and closed on only 30 days later — a true accomplishment in an arena where transactions are famous for moving slowly.

They have sold distressed properties from anywhere from $1 to $5 million. Their top sale was on the market for only nine days and closed two days afterward.

The lesson is to choose the right people to help you identify and then secure the right properties to meet your personal, financial and lifestyle goals. It isn't a task to undertake on your own, especially if you're new to distressed property investment.

"Market knowledge is crucial," Carl emphasized. "When you're seeking out that diamond in the rough property, do your homework; follow tax records for lis pendens and liens. Most importantly, find a dedicated agent who works seven days a week and really knows the market."

Distressed properties make up a huge percentage of available property inventory. That's the reason it pays to get educated on foreclosure and preforeclosure investment. Spotting those diamonds in the rough is that much easier when you have the right team behind you and understand what you're looking for.

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Real estate tips

UNCOVERING A DIAMOND IN THE ROUGH

The key to success in distressed real estate is being able to identify those spectacular diamond-in-the-rough properties before your competition does.

How to Spot a Diamond in the Rough — Our Top 5:

1. Condition. A shabby overall condition is the #1 indicator of a diamond in the rough. When a property isn't presentable, it puts off other buyers. If you can see past the repairs, you may have just found yourself a killer property deal.
2. Fixable. Of course, shabbiness doesn't tell the whole story. You need to choose a property whose issues are fixable at a reasonable cost. Paint, landscaping, graffiti and trash removal, flooring and cosmetic updates are all easy and cheap to "do it yourself". Stay away from properties that need serious work such as plumbing, electrical, etc.
3. Layout. Short of tearing dwon the house and rebuilding, there is little you can do to change a property's layout. Look for layouts that are popular today, such as open concept floor plans where the kitchen, dining and living area all share a space. If the layout isn't sellable, you haven't found your diamond in the rough yet.
4. Location. We've all heard the old real estate adage about the importance of location and it definitely applies to distressed property investment. A good location is central to an intelligent real estate purchase decision. A property rehab will do little good if you're in an undesirable location.
5. Teamwork. To find the best deals, you really should enlist the help of a real estate agent who specializes in distressed properties in your neighborhoods of choice. The best way to ensure you're getting a fantastic deal is by putting together a knowledgeable team of experts who are on standby to advise you on your potential real estate transactions and help you move quickly when you're ready to make an offer.

As you can see, spotting a diamond in the rough isn't rocket science. It simply requires an objective approach when searching for real estate. Don't get sidetracked by a little peeling paint or grime and also don't be swayed by a low price in a terrible neighborhood.

Remember, the best hidden gems are unsightly homes in the most favorable locations that require inexpensive rehabbing. Start your diamond in the rough search on Foreclosure.com now.

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Deals of the Month

HOT FORECLOSURE DEALS!

Jacksonville, FL
$105,000
4 beds/2 bath
2,215 sq. ft.

Baton Rouge, LA
$69,000
3 beds/2 baths
1,436 sq. ft.

Tucson, AZ
$154,500
3 beds/2 baths
1,628 sq. ft.

Linda's Learning Lane

GOOD BONES

Have you ever heard the term "good bones?" The first time I heard this term someone was inferring that I had potential. Designers of homes lovingly use this phrase often, too. They have the ability to see the "good bones" in the making.

Spotting or identifying the possibility in real estate is something that can be learned. When a home has attractive lines in the roof and the floor plan is functional therein lies a foundation for possibility. Functional obsolescence is defined as: A loss of value to a variety of factors. If a home has some form of functional obsolescence that could potentially impact the disposition of the home.

The ability to create beauty or profitability exists through the fundamentals. Curb appeal, an aligned roof, functional floor plans are some of the factors that give a home those bones to build upon and mold. Sometimes we can be impatient when looking for those diamonds. But as is with everything in life, time and experience will provide a canvas to exposing those little gems that will pay off in the future.

Someone recently commented that being presented opportunities is great only when you seize the opportunity. Having your eyes open and creating a vision for what you want to attract will bring those diamonds into your world.

Happy mining!