December 2007

Investment Exchange

An educational real estate newsletter

Flipping houses

Now is the time to invest

The term "flipping" in real estate refers to the practice of purchasing a property, making repairs and/or upgrades and then quickly reselling it for a profit.

Flipping houses is definitely not as easy as it looks on television, but it can be done successfully — even by an amateur — if a person takes the time to understand the process and makes good decisions.

First and foremost, it's important to know your limitations when you're new to real estate investing. If you're just starting out, don't get in over your head with a home that requires a tremendous amount of love and attention.

Understanding a local real estate market before making an investment is perhaps just as important because it can mean the difference between success and failure. Research neighborhoods and learn as much as possible about comparable home prices so that you will be able to recognize a bargain on Foreclosure.com the moment you come across it.

In addition, set a reasonable budget and stick to it. Do your homework — such as pricing out new appliances at the local home improvement store or reaching out to several contractors to find the best rates — prior to getting involved in a renovation project.

In this edition of Investment Exchange, we touch on some other tips and tools that you can use to get started flipping real estate. It's a great time to get in on the action because the market is favorable for buyers who want to capitalize on great deals.

In addition, the New Year is right around the corner. Wouldn't it be nice to turn over a new leaf and begin living more comfortably in 2008 and beyond with several lucrative real estate flips?

It's possible ... and we're going to show you how to get it done. The skies the limit!

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Site feature spotlight

Expert training at your fingertips

Just about each week Foreclosure.com unveils a new online real estate training Webinar on a new investment strategy or proven money-making technique. These educational sessions are LIVE and feature a talented array of successful and respected real estate minds from throughout the nation.

For example, in just a few weeks real estate flip expert and successful investor Mike Collins is going to reveal how to rehab foreclosures and other properties right the first time with a winning formula that he has perfected over the course of the last two decades.

To view our latest course offerings click here.

Our Foreclosure.com Webinar series has become so popular that we have decided to roll out our own "On Demand" feature that let's you view select prerecorded online real estate training presentations at reduced prices.

That means there's no reason to ever miss (or stress about missing) an upcoming LIVE Foreclosure.com real estate training Webinar.

We've now got you covered.

What exactly is a Foreclosure.com Webinar?

Webinars are LIVE educational sessions (usually 90 minutes in length) that let you see, hear and interact with real estate experts right from your personal computer screen. In fact, Webinars are driven in part by participant feedback and questions that are posed during the sessions.

We still encourage you to tune-in LIVE during the actual training sessions. In fact, some are even FREE to attend (with FREE 7-Day Trial), making it a no-brainer to participate and learn valuable information about flipping real estate.

But just in case there's a schedule conflict or it's not the right time, remember to check out the menu of options on the Foreclosure "On Demand" Web page frequently.

Thank us later.

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Web site search tips

Discuss real estate with others

Even the most successful real estate flippers need a little help — it's virtually impossible to go at it alone.

From searching for great deals to financing to reselling them for profit — and all the other critical steps that take place during the process — it's important to have an individual(s) who can offer assistance at the drop of a dime.

Don't have anyone who fits that description? You do now.

Foreclosure.com now features a forum on its award-winning Web site, which means that you can now discuss the latest real estate-related topics with experts, agents, brokers and other likeminded investors.

"It's a real estate community packed with useful information," said James Houston, Foreclosure.com Vice President. "It's a space where people can come and ask questions or just pick-up useful information and apply it to their investments."

The forum allows first-time homeowners and experienced investors alike to share their real estate investing experiences and learn from one another. In addition, it will facilitate the transfer of knowledge among peers and minimize the amount of time investors spend on research.

"The forum is a great place to find a contractor, for example, in a certain area," said Houston. "Other forum visitors can recommend a company to do the work based on previous experiences. That's just one very small benefit of an extremely beneficial real estate resource."

"Bookmark it right now," concluded Houston.

The forum is relatively new and is growing exponentially thanks to the continued participation of our visitors and others from with the real estate circle. One section within the forum is linked to our "Sell your home now!" page, which is a hot list of leads and deals from homeowners who need to sell their properties fast.

It's a great resource to find amazing deals ... and there is virtually no searching involved!

So what are you waiting for?

Head over to the Foreclosure.com real estate forum right now and give it a spin. It's a great place to get smarter and forge the connections necessary to thrive in this business. Click here.

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Hot off the press

Cash-in on foreclosure auctions

We sometimes think we sound like a parrot: Foreclosures are hot and getting hotter.

That because it's true.

More and more homeowners are continuing to fall into distressed real estate situations. Just check out this recent article in the Houston Chronicle for evidence that foreclosures are indeed on the rise, and more importantly, so are great deals.

Here's a snip:

"Foreclosure auctions are proliferating, as banks stuck with properties look for quick ways to unload the ones that don't sell right away.... The auction [in Texas] resulted in sales contracts on about 160 houses whose former owners lost them to foreclosure, a growing epidemic that can be an opportunity for house hunters."

One important thing to keep in mind here: Texas has very strict foreclosure laws. Homeowners can lose their homes to lenders if their mortgages are just 30 days past due. Therefore, the large foreclosure inventory in the "Lone Star" state is not indicative of the nationwide picture.

Having said that, our foreclosure data indicates that foreclosure numbers are increasing across the board throughout the United States. And that means there are great bargains to be had in Texas and beyond.

This is indeed a "buyers market," meaning that buyers now typically have more leverage and wiggle room during the negotiation process to purchase homes ... especially those in foreclosure. In addition, there are more homes from which to choose.

"I could probably count the number of foreclosure properties in Palm Beach County, Fla., on two hands about three or four years ago," explained Foreclosure.com Founder, President and CEO, Brad Geisen. "The lenders wanted — and usually received — top dollar for them in a few days. Today, there are numerous unbelievable foreclosure opportunities available and it's possible to purchase them at significantly reduced prices because these can remain on the market for months.

"It's a great time to invest in real estate," Geisen concluded.

Purchasing homes at public foreclosure auctions (also known as Sheriff Sales) does, however, come with some risk. One of the biggest drawbacks is that foreclosure homes come "as-is," meaning that there is often no means to inspect the properties beforehand.

In addition, to purchase real estate at a foreclosure auction the buyer has to pay all of the money upfront on the same day as the sale.

In short, opportunities to cash-in on the booming foreclosure market are increasing with each passing day. With the right approach and action plan it is possible to really rake-in some remarkable profits on flipping properties right now.

To learn how to do just that and where to get started flipping foreclosure homes click here. Feel free to also search our database of more than 1.8 million real estate listings right here.

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Our success stories

If she can do it, so can you

Pursuing a career in real estate was always something in the back of Heather's mind before she even got married and had three children.

However, the responsibilities of parenthood, as well as marriage, put those "dreams" temporarily on hold. It didn't get any better when life threw Heather yet another curveball in the form of a difficult divorce.

Now a single working mother of three, it seemed that her real estate investing aspirations were dashed completely. There simply weren't enough hours in the day to even think about flipping foreclosures, much less actually researching and closing lucrative deals.

Life has a weird way of turning around even during the darkest hours.

Heather eventually came into some money just when she thought she couldn't make ends meet. It was also around this time that her three kids were all old enough to attend school full-time.

With a little extra money in her pocket and some rare free time on her hands, Heather began to perform some research on real estate training. She found her way onto Foreclosure.com and began to participate in our online Webinar series.

"I couldn't get enough," said Heather. "I was a sponge, soaking up all the expert advice and knowledge I could to ensure that I was prepared to take the plunge. I wanted to do it right ... and I was getting closer."

Her attendance and participation caught the attention of the Foreclosure.com Director of Education, Linda Yates.

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"We were looking for motivated individuals to attend a three-day one-on-one real estate training retreat," said Yates. "It was a 'beta program' that we did under the radar. Heather fit the bill to a tee — her enthusiasm and excitement were infectious."

The Foreclosure.com One-on-One Real Estate Training Retreat is now a LIVE hands-on learning experience that is available to any and all interested individuals.

From walking through actual foreclosure properties to role playing to analyzing potential deals, the retreat covers Foreclosure.com Founder, President and CEO, Brad Geisen's, money-making real estate investment system from A to Z.

There's just one catch: Sessions are limited to only 20 participants. For more information click here.

Heather was fortunate enough to get in on this intensive hands-on real estate training experience. And her outlook on getting started and becoming successful flipping homes will never be the same.

"Wow!," said Heather. "That's all I have to say. I came in with basic knowledge of real estate investing, but I didn't have that fire and confidence to go after deals. That all changed on Day One — at lunch I realized it's really possible to do this."

Foreclosure.com One-on-One Real Estate Training Retreat is effective because it packs literally lifetimes of real estate investment experience into a three-day, easy-to-understand course. It's a lot of valuable information and the experts on-hand take the time to go through it all, answering each and every question from our participants.

Perhaps most important attendees walk-away with skills and resources that last a lifetime.

"I was shocked that someone with no previous real estate investing experience can walk out of the first day of a three-day training retreat with an action plan in the works and the confidence to get started investing," said Heather. "It far exceeded my expectations. I want to shout it from the rooftops: Anyone can do this!"

We agree. That's the entire foundation of the course, turning "dreamers" into "do-ers" and, in the process, helping them achieve financial independence with real estate.

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Real estate tax news

Mortage relief won't hurt taxpayers

Foreclosure filings are on the rise throughout the nation, meaning that more families are losing their homes to default. It's a serious problem that has alarmed officials at the highest level of our government.

In fact, President George Bush and his administration this month issued a plan that will help distressed homeowners hang on to their homes a bit longer — hopefully, forever. The proposal will help homeowners who received adjustable rate mortgages (ARMs) between Jan. 1, 2005, to July 31, 2007, and will reset from Jan. 1, 2008, to July 31, 2010.

What's the big deal with ARMs (also known as "subprime") loans? A recent article in the Statesman Journal lays out the case nicely.

Here's a snip:

"As home sales and prices have plummeted in many areas in recent months, delinquencies among borrowers with subprime loans have soared. The Mortgage Bankers Association on Thursday said 19.6 percent of subprime adjustable-rate loans, or 600,000 mortgages, were at least one payment late at the end of the third quarter. The problem is expected to worsen significantly, with 1.8 million adjustable-rate subprime mortgages poised to reset, to often sharply higher rates."

There are other important details contained within the article. To learn even more about the initiative the best thing to do is contact your mortgage lender about how to take advantage of the program.

One important thing to note (since this is the "Real estate tax news" spot) is that this will not affect taxpayers. According to the article, no taxpayer money is involved in the current effort.

Here's more on that:

"... the government persuaded the financial industry to work out voluntary guidelines to more quickly refinance loans when possible, freeze rates for five years or longer when needed and continue to modify mortgages on a case-by-case basis."

While the government is doing its part to help alleviate the subprime mortgage "mess," remember that you, too, as an investor can help homeowners in default.

"Refinancing" and "freezing" rates will not help everyone. Furthermore, several homeowners will more thank likely be interested in "selling" and "downsizing."

That's where you come in — it's possible to score some killer preforeclosure flips and fantastic "short sale" deals during this time.

To learn more about how to do that click here.

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