She BANKED $2.4 Million In Just 14 Months

Can You Really Invest In Real Estate From The Comfort Of Your Own Home??

Investing outside of California and investing in real estate from your own home is way outside my knowlege base... but not Charrissa Cawley's. Click here for an Immediate digital download of Charrissa's ground-breaking training. You'll be directed to a page to fill in your info and request the training. In the training you'll learn what to do to become a Real Estate Power Investor! "Are You In or Are You Out?"

That's what Charrissa Cawley would say... In fact she does say it... and Charrissa makes a compelling arguement too. With the recent relaxation of FHA guidelines, in the 90 flip rule, she says there are no more excuses to not invest... Charrissa put it this way... "...those of you who have been waiting for the perfect time to begin investing need to do a gut check and make a real estate investing decision. You’re either going to start investing – or you’re going to kick back and talk about investing until all the best properties are gone and this unprecedented opportunity passes." She's sooooo right!!! I talk to "I shoulda" people all the time. Don't be one of "those guys" It's a waste of life. Either you're going to invest in real estate or you're not. -So you've gotta ask yourself... "Am I in or Am I out??" All my posts are based on investing in real estate in California... most specifically, my local market. That's because that's what I'm familiar with. So if you're investing in homes, whether they be foreclosures, short sales, or some other investment home, in California then you can glean a lot from my posts. If you're in another state... or you want to invest outside of your state, then read this post and learn from the master, Charrissa Cawley. If you don't know who Charrissa Cawley is, then here's a quick bio... Stay at home mom turns Multi-Millionaire, in 14 Months... that's right... she started investing and earned 2.14 Million Dollars in just 14 months. Now she's giving back. She's a seminar speaker and a real estate investment trainer. She's training on real world, current, Real Estate Investing strategies and her students are making a killing too. Charrissa is allowing people to get thousands of dollars worth of material for a low introductory price. Grab your copy now... I hear the price is going way, way up after the launch. -- This Is Cool -- Charrissa is teaching people how to invest from the comforts of your own home... I'm not talking about the training... I'm talking about actually buying the homes - while at your home. You can become a skilled real estate investor without even having to be on location for most of your deals. This is the beauty of remote access and virtual assistants... I'd also like to add that NO MATTER HOW BAD the recession gets, it's times like these that turn our markets upside down which opens up a plethora of opportunities out there for property investors. Basically, right now there is an absolute gold mine out there which I and many others are capitalizing on. In fact we are doing a good thing by keeping the RE economy sector moving forward and stopping a domino effect of further chaos to some degree... So no, there is no need to ask; "Charrissa, is your business suffering right now?". Because the answer is "no, my business is booming during this downturn." Here's a question Charrissa asks: "Are you currently 'happy' with your day to day routine? Would you live your life a little bit differently if you didn't have to worry about having enough 'time' or 'money' to make sure your family and future were secured? If you're like most people, you would do ANYTHING to finally be able to drop that crappy 9-5 'just over broke' job, and generate three times the amount of money you do now, with only 1-2 hours of real work a day working for nobody but yourself. Imagine the freedom, no staff, no office, no boss, and no more 'routine'..." This would mean time with your family, time for vacations (and the money to do it!), all those goals you've set for yourself financially turning into reality, and let's face it - just a much better, less stressful, and more rewarding day to day life! Sound good? Let me tell you it's more than good, it's GREAT! Charrissa has been living this dream for a few years now and watched hundreds of her students grow to be huge power investors under her wing. The best part is, these are NORMAL and EVERY DAY people just like you, they're not Harvard graduates, they are not the 'top of the business class', they simply have a heart, a brain, and a passion to finally take control of their lives. IT DOESN'T MATTER what your experience level or background is with real estate, the information that she has to share with you has the power to dramatically change your life for the better in under 30 days.

You'll learn all you need to know, like "The Four BIGGEST MISTAKES New Investors Make" No Matter What - Don't Let This Happen To you!. Mess these up and you'll NEVER make it in this industry.
  1. The market: Never invest unless there is a STRONG rental market with good potential for long-term positive cash flow/income. Weak markets often predict short term risky returns with little room to maneuver.
  2. Do NOT overspend on your investment. Meaning that if you can't get it at a great price, DON'T TOUCH IT! No matter how much 'future appreciation' a property might have, this is asking to get burned later!
  3. STOP CHASING the same dime. Motivated sellers CAN be a little goldmine if you focus on them exclusively, however this is going to eat up your time, and you are going to find yourself in a bad deal sooner than later. I have a turn-key system that goes far beyond the success of quick movers & shakers.
  4. Too much talking, not enough walking. This was the hardest one for me to get over, stopping my research and simply TAKING ACTION! Too many people talking a big game, and even if they truly know what they are talking about, nothing attracts success more than being a motivated go-getter that doesn't talk too much, but acts fast, swift, and often.
If some of this stuff translates into your life, and or you can relate to it with your current career path, then it's time you consider a true change for the better. Click here to see the proof... get the facts... and start making money with this system, investing in real estate.

Thursday, May 6, 2010

40% Profit When Buying Foreclosed Homes... REALLY??


In this post you'll find a lot of information but it's not meant to be a comprehensive, step by step guide to investing in foreclosures. If you are a serious investor or just beginning... and you want a comprehensive step by step guide to investing in foreclosures then (whether in California or not) you'll want to CLICK HERE.  The information, in this post, is intended for those investing in homes in California.


Okay... my last two posts were laying down the basics, or "foundation" to keep the analogy within housing, and not really about how to buy foreclosed homes.  Post one was What is a foreclosure or foreclosed home, and post two was Can I use financing when I buy foreclosed homes?
We are going to get into the meat and potatoes... or... structure (again, keeping the analogy within housing)
There are two investment strategies when you buy foreclosures.  Those strategies are:
  • buy and hold
  • buy and flip
Each foreclosure investment strategy has its purpose, ups, and downs.  Each strategy will usually attract a certain investor mindset too.

Subsequently there are two ways to buy foreclosures.  You can:
  • Buy foreclosed homes that are being marketed on the open market, through a Realtor, or some other source (but you are not going to get a huge discount going this route)
  • You can buy greater discounted foreclosures by going to a "trustee sale" at the courthouse steps.
    • trustee sales are performed in California and a handful of other states. This information relates to trustee sales in California.  Some states perform judicial foreclosures, some perform non-judicial (trustee sales) and some perform both.  See a list of states with trustee sales here.
So... if you're going to buy foreclosures on the open market... your best strategy may be to buy and hold.  And it's okay to buy a foreclosed home this way since an immediate profit is not your primary concern.  You'll probably be buying that house at the current market value and your primary goal is to get a good "rentable" home.  This investor mindset is typically happy to, at least, break even.  However most will cash flow a couple hundred dollars a month.  I'm not suggesting that as the BEST foreclosure investment strategy... but it is one.
 
Although we're in, what I call, a wholesale market you can still get deep discounted "blue light" specials when you buy foreclosures at a trustee sale auction.   Again... I want to stress that this information only applies to California (and perhaps other states that liquidate foreclosures through the trustee sale, non-judicial foreclosure, process).  Look at my What is a foreclosure or foreclosed home blog to get more information on that.

So, when investing in foreclosures, the buy and hold strategy is great and has its purpose.  There is typically an initial outlay of money and not a huge immediate profit.  here are a couple examples to see how your money is made when you buy a foreclosed home and hold on to it.


But this post is about making 40% profit when you buy foreclosed homes.
How can that profit amount be possible?  Is it legal?
Well, I already said that we're in a wholesale market and you'll probably realize a 40% increase in the future, when the values go up (again... think California and not Antarctica) but I'm not talking about appreciation over a 10 year span of time... I'm talking about cash in your pocket now!  (and YES, of course it's legal)

To realize this kind of profit today and not have to wait for the market to return you'll want to buy at deep discounts and then flip those homes at, or greater than, market value for the immediate profit.  You've got to do your homework but buying at a trustee sale may be the best way to see this kind of immediate profit.  I've been tracking homes bought at the trustee sales, here in Corona California and have seen an average of 32% profit from the purchase to the sale.  I've seen these profits as high as 63% and an average high of 41%. By the way... that's a gross profit, you can probably assume about 11% - 12% total cost to prep and re-sell.  


So what are the mechanics of this and how do YOU make that kind of profit? 

I recommend that you study a specific area and stick with it.  If you know the market trends and pricing in a specific area it'll make it easy to spot a good deal, even if you haven't done the research.

You'll want to view the properties beforehand if possible.  One way to see the homes is to check the MLS.  Some homes that are listed on the MLS will not be sold through the market (for various reasons) and will end up being sold as a foreclosure home, on the courthouse steps.  If you can peek into a
vacant home or find another legal, tactful, courteous way to see the inside of homes, you really want to be able to assess any repairs that will need to be factored in to your bottom line.  There's a belief that you need to buy a fixer and restore it to make money... NO WAY!  I'd buy a home that doesn't need much work, if any at all.  That way you get that house on the market fast and you minimize your risk. I recommend to make it better than it was when you bought it but that may only need to be paint and carpet... and that's a good investment!

You'll want to ensure that the liens will be wiped out in the foreclosure sale... YOU MUST MAKE SURE THE LIENHOLDER FORECLOSING IS IN FIRST POSITION*.  Yes... all junior liens are supposed to be wiped out in a foreclosure sale (if the first position lienholder is the foreclosing party) however some Homeowner's Associations (HOA's) will hold their services ransom until they "get their money".  Since you're buying a home in their neighborhood... you may have to pay them.  It sucks but... just do the research so you're not stuck holding the bag.
*You can invest in 2nd's that are foreclosing but there is a lot to know about it and this post does not get into that foreclosure investment strategy AT ALL*
Another potential pitfall could be IRS Liens... they should not "follow the property" but it could take some time to get the IRS to remove the lien which could hold up your "flip" sale.   

You must figure an amount to pay the current occupants to entice them to leave and not destroy the home on their way out.  This also brings up another good point... if at all possible, avoid properties with renters*.  Many banks do this... it's called "Cash for Keys" and many Realtors have a form available to them from their local board.  I'd budget $2,500 to $3,500 but certainly start your enticement at perhaps $1,000.    
*The tenancy laws have recently changed and you may become a "buy and hold" investor when you didn't really want to.
Here's a hot tip: If you're finding it difficult to get someone to cooperate... rather than filing for an      eviction try to sweeten the pot by adding a weekend getaway.  You can usually get some kind of package for a couple hundred bucks.  

When you go to the foreclosure (trustee) sale you'll want to have done all your research.  You MUST know the market value for the home.  It gets crazy when the bidding starts. You need to have figured all your costs and have a decided stopping point for your bidding.  You'll base this on the market value minus your projected costs (and figuring a little extra for unforeseen challenges) and all this will be based on your target profit.

You Must Pay Cash
(actually... cashier's checks) You have to show up with cashiers checks when you buy foreclosures at a trustee sale.  It's recommended that you think of these cashiers checks as money and get different checks for different denominations.  In other words... if you plan on spending $100,000, then bring a check for $50,000 a $20,000 a couple $10,000's and a couple $5,000's.  This will make sure you don't have $20,000 tied up if the house you buy is only $80,000.  They don't make change on the courthouse steps.  You'll have to wait for the trustee to receive the paperwork and cut your check... it could be weeks.

You'll definitely want to work with a local, competent, Realtor so you can make sure you have a good assessment of the value of the home.  You should definitely work with a Realtor who
knows the foreclosure market.  You may also want a good contractor too so you can asses you potential repairs.  You've got to have a good contact at a reputable title company so you can get data on the liens that may be against the property.  I personally know of a good realtor who knows Corona Real Estate, I’m a little biased but I think you’ll like the service you get by working with me… um… him.
 
I know I've over simplified it, at the interest of making this post easy to read, but when you buy foreclosed homes... I want you to know that you need to be ready to roll up your sleeves and work!  Initially this is not easy money, but once you have a system down it will get easier.

You'll find that there's a lot of work when you buy foreclosed homes, but the upside is the profit and Joy you get when you help another family get info a nice house... one that you bought, fixed up, and on which you made a profit.


If you have any questions about this post, about foreclosure investing, investing in real estate, or want to contact me for help when you
Buy Foreclosed Homes in Corona or Riverside, go to my website and contact me there.

Enjoy and Go Make Some Money!




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