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Buying Property After Foreclosure excerpt from Millionaire Real Estate Mentor by Russ Whitney There are three ways to invest in foreclosures: buying pre-foreclosure (stopping the foreclosure process by purchasing the property); at the foreclosure auction; or after foreclosure. Here’s what Russ Whitney wrote about buying after foreclosure in his bestselling book, Millionaire Real Estate Mentor: The third way to buy foreclosure properties is after foreclosure from the lender if the property didn’t sell at auction or from the investor who purchased the property at the auction. This can be a very lucrative way to buy property, especially in a buyer’s market. Lenders are often willing to accept creative offers, such as no money down, no payments for three months (to give you time to clean and fix up the property), under market price, and at low interest rates. Lenders often turn a property over to a real estate agent within a week or two after the auction. That period is your window of opportunity. A real estate agent is going to try to get the highest price possible, because the agent’s commission is based on the sale price. But if you can make your deal with the lender before the property gets listed, the lender makes a quick sale without paying a commission and is more receptive to agreeing on a good price for you. When putting together your offer, take some pictures of the property’s worst problems, such as peeling paint, rotten wood, termite damage, neglected landscaping, broken windows, and the like. Show the lender that it’s going to take time and money to repair the house and that the property isn’t likely to sell in that condition. As part of your offer package, you might also want to include before-and-after photographs of other properties that you’ve fixed up to show that you have the necessary experience and capability. Once the property has been turned over to a real estate agent, you can still make an “as is” offer to purchase. Justify your offer by attaching a letter explaining the logic and reason behind your numbers. Whether you’re going directly to the lender or through a real estate agent, your chances of getting your offer accepted are much greater if you put together a professional package that answers all of the lender’s questions and concerns before they can be asked. Don’t be surprised if the lender makes a counteroffer. Take a look at the numbers to see if you can make the deal work. If not, you can either counter the counteroffer, or walk away. If you found this excerpt from Millionaire Real Estate Mentor valuable, you’ll want to read the entire book. In his always practical, easy-to-understand style, Russ Whitney explains how to achieve financial freedom through real estate investing. To get your copy, visit www.russwhitney.com/store.
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