2010: Why Invest In Trustee Auction Properties?

Simple and secure investment strategy

Buy low, sell higher

Buy foreclosed homes in Los Angeles at up to 30% discounts to value

Yes, $70,000 to $200,000 below TODAYS value

Short investment turn around time

We Make It Simple, We Do The Hard Part

We sort through and evaluate the hundreds of homes scheduled for foreclosure every day

We buy the diamond deals with our funds

We present the properties to you for your consideration

Security: When you buy the property it is in YOUR name

You pay exactly what we pay at the auction

You pay us a flat fee or we can partner with you

You pay us only if you buy

How To Buy Foreclosure Homes And Flip Them For Profit.

Someday history may define 2010 as the greatest real estate wealth building year ever. You can easily understand the concept that following one the biggest and fastest real estate market declines in decades that the upside of the next appreciating market cycle is HUGE.

This article aims to offer a brief outline of the steps to success in foreclosure home flipping.

Is there a chance to make money right now? Yes, this is a great time to buy homes at greatly reduced prices and re-sell (Flip) them for profit. Thousands of homes are sold at trustee auctions everyday and anyone can buy them.

The trustee sale is the last part of the foreclosure process. All notices have been given and the owner has not been able to get current on the mortgage payments. Now the property is sold at a public auction to the highest bidder and the lender sets the minimum bid up to but no higher then the actual amount owed on the existing loan.

It most areas these sales are all cash only. Unlike a traditional sale these auctions are as-is, where-is, buyer beware sales. Of course you most do your home work or you can get hurt. The upside to dealing with all of the challenges is the competition is greatly reduced thus the substantial discounts.

Allthogh there are many items to consider this is a partial list of the items you should evaluate before you decide.

• What are other similar homes selling for in the immediate area

• What title conditions exist such as back taxes owed

• What will it cost to refurbish the home to get maximum value

• Is there a good re-sale market in that neighborhood

• What are all your costs such as closing costs, taxes, commissions

• If you make a mistake can you afford it

I hope you get the picture that this is not a risk free strategy. You most do your home work. You must have some money to do business with. And you must have courage.

That said there is big money to be made IF you do it right. As an example in my primary market (Los Angeles) every day there are many properties sold with $100,000 to $150,000 margins between the buying price and the now market selling price.

This is no exaggeration. You can check with public records to verify this. Realty Trac is a national company that gathers extensive information on foreclosures and this can be an invaluable tool in your success. Among the services they offer is notices of upcoming auctions. You will want this information so as to pick out the homes of interest to you and begin your research.

Once you are confident you know your numbers you will go to the auction site and bid. You should visit the auction site several times before you need to bid to obtain a feel for the process. The auctions are regularly held in a few different locations and you’ll see the same auctioneers representing the trustees for the lenders there. You can ask them questions and the nice ones can be very helpful.

You will likely be required to have cashiers checks and you most register with the auctioneer before bidding. Pay attention as the property can be called at any moment and when you miss it you will need to find another home and start all over again.

If you win one congratulations. And if you don’t there will be another opportunity and then another. The foreclosures will certainly keep coming for a while but eventually they will dry up and the opportunity will go away.

There are many ways to make money investing in real estate. There are various more ways to lose money investing in real estate. There is one strategy you can count on perhaps the most simple of all. Buy at the bottom. When you buy at the bottom the only way is UP!

So check it, pick a entry point, and jump in. This could truly be a once in a lifetime opportunity to make some great money flipping homes.

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