FAQs - Investment

Absolutely! There are people like you doing it every day. The primary key to their success and yours is to use a system that can be repeated over and over again to make consistent profits. I of course recommend the system presented in the Complete Guides. But whether you use mine or someone else's, it is very important that you follow a system closely.

It has been proven time and time again that the people who try to invest in a haphazard way, without a system, almost always lose money. I've seen a number of investors try to buy properties without doing the proper research, without checking out the neighborhood, and with no clue on how to arrange financing. Doing it this way is dangerous, and is the quickest way to put yourself out of business.

My system teaches you the step-by-step approach to buying and selling foreclosure properties that you can use to make big profits. I take the guesswork out of investing, and I provide significant amount of Author's Tips in the book to give you the benefit of my experience.

How do I get started?

This is probably one of the most frequently asked questions about real estate and foreclosure investing. The reason is that too many people think about getting started, talk about getting started, plan to get started, and never take the next step. They suffer from confusion, uncertainty, lack of knowledge, analysis paralysis, and a host of other fears that prevent them from taking action.

Most if not all of these fears can be avoided by developing a system for buying and selling properties. As I answered in the 1st question, you must have a system to be successful. All successful businesses have a system for making money, and you need one too. The Real Deal System was developed to help beginning and veteran investors by describing step-by-step procedures that could be easily repeated. It is essential that you understand and use these procedures if you want to be successful.

Don't paralyze yourself with fear. Don't begin haphazardly. Learn my system, fully described in my Complete Guides, and see how straightforward it is to profit from foreclosures. Get your copy of the guides and learn for yourself how to get started right away.

Where can I find the cash to invest?

There are several sources of cash that are available to support your deal making. The sources include lenders and other investors. These individuals and organizations can offer the investment capital you need to conclude a deal, and are generally negotiable on terms and conditions. My Complete Guides describe many other readily available sources that you may not have considered. The key is to not limit yourself to only one source. You should establish a list of sources you can count on, so that you can quickly get the cash or the financing when you really need it.

Is it worth buying VA and HUD Repossessions?

You can make money by buying repossessed properties from the Department of Veterans Affairs (VA) or the Department of Housing and Urban Development (HUD) . The bidding isn't done publicly, like foreclosure auctions, and the profit margins aren't always as good when compared to buying foreclosures. However, these two approaches can be quite profitable. They can also be very profitable for home buyers who are looking for their first home. Check the VA and HUD web sites for listings, and contact a local broker/agent who specializes in government repossessions.

Which is the best method to buy foreclosures?

The guides and related information products focus on three methods for buying foreclosures. There is no best way. Each method has a primary advantage and disadvantage, as shown in the following table. Your decision to use a particular method will depend on the specific details associated with a given property. Therefore, each potential deal should be evaluated on a case by case basis, with the intention of maximizing your profit.

Method

Buying Pre-Foreclosures directly from the Owners

Buying Foreclosure Properties at the Auction

Buying REOs from the Lenders after the Auction

Advantage

There is limited competition in buying from owners

All junior debt is wiped out at the auction

Some lenders are very flexible about making deals

Disadvantage

All debt stays on the property until it is sold at auction

Auctions can sometimes be more competitive

Some lenders who work with brokers tend to be less flexible

Some investors advocate one method almost exclusively over another. I tend to disagree with this approach. I have profited from buying foreclosure properties using all three methods, and I intend to continue doing so. Again, you should make the choice based on your financial analysis of each deal.

Do you offer a foreclosure database?

Yes we do. Click here for a Free Trial of the most comprehensive database of foreclosure listings. These listings are useful for identifying great deals in your area. They can save time in your search for profitable deals.

How do you find out if there are IRS liens on a property?

An IRS tax lien is created when a homeowner fails to pay his taxes to the IRS. It is known as a general lien, which means that it affects all real and personal property belonging to the owner. Unlike a property tax lien, an IRS lien takes affect from the date it is recorded. You would find such liens by conducting a title search at the local courthouse. Check with the land records department if you're not sure how to begin. The land records department will contain information about the lien, including the amount and the date it was filed.

What is a Quit Claim Deed with respect to foreclosures?

A quit claim deed is a deed used by some owners in default to "give" the property back to the lender, in lieu of making the monthly payments. It is sometimes used when the property has more than one owner, and one of them (grantor) surrenders the property to the other (grantee) because he is unable to continue his share of the payments. Although a quit claim deed does not provide any warranty of the title, it still takes precedence over any subsequently filed deed..

Title companies prefer not to deal with properties with quit claim deeds, because of the extra research involved. Therefore, as an investor, you may have to pay more for the title search and title insurance.

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