March 2009

Investment Exchange

An educational real estate newsletter

CREATING YOUR INVESTMENT TEAM

Investing in foreclosure real estate can seem a little overwhelming for first timers — there's often a lot of ground to cover between finding a diamond in the rough and polishing it so others can appreciate its true value.

But fear not ... Foreclosure.com is here to help.

Of course, you've got to first find a property and determine if it's worth the time, effort and money. You also need to sort out your financing, negotiate the best deal and find contractors to fix up the property. Then you've got to stay on budget so you can market your property for top dollar in a housing market that today is beyond saturated.

It may sound like a lot, but like many things in life, foreclosure investing is a step-by-step process that can be navigated fairly easily as long as you are sure to take your time and put one foot in front of the other.

This month's newsletter is called "Creating Your Investment Team" because we want to help you to do just that: break down the process into manageable pieces so you can see how truly easy it is to get started making serious cash in this business.

Foreclosure.com has all the tools you need literally at your fingertips, so you're never more than a few mouse clicks away from helpful information and support at all times.

So let's get going! It's time for you to create your investment dream team!

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Site feature spotlight

QUALIFIED BROKERS IN YOUR BACKYARD

One of the most important people in your investment network is arguably your real estate broker. This is especially true if you're just getting started in real estate investment.

Your real estate broker will be the intermediary between you and the seller, so the more experience they have, the better. You should look for someone who's got experience, training and excellent people skills.

There are a lot of broker networks on the Internet, but often they've got incomplete information and it can be hard to figure out which brokers are actually worth their salt.

The most successful investors turn to Foreclosure.com's broker network to find brokers in their areas because they trust our reputation for reliable counseling in all real estate investment matters. Our network lists their contact details, Web site and even a map so you can find the brokers who know your neighborhood best.

Many of the brokers in our network have been trained by Agent University, which offers a Certified Foreclosure Agent program that is second to none in this industry. Certified Foreclosure Agents are far and away the most knowledgeable, helpful professionals in the industry. They've had the hands-on training necessary to help you build your fortune in real estate investment.

It's important to understand the key role a real estate broker plays on your investment team. Trust Foreclosure.com's broker network to find the broker in your area who suits your investment preferences and is willing to go the extra mile to help you realize your real estate goals.

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Web site search tips

GET LOCAL DETAILS
ON DEMAND

What's the point of using a Web site that can help you find a property you like, but you don't know if the information is current or how to get the support you need to make the deal?

There isn't one ... it's a waste of valuable time and money.

The good news is that Foreclosure.com helps you avoid those all-too-common headaches by giving you the information you need for everything from lenders to contractors, community data to real estate agents and brokers.

We provide this information for every single one of the millions of properties that are listed on our Web site, ensuring the data is current, complete and nearby. That means that if you need a contractor in Newark, N.J., we'll show you who's around. If you need financing in Miami Beach, Fla., we'll put you in touch with the best rates and options.

You don't just get one choice, either.

We've got multiple listings for local financing and other service providers for virtually every property on our site. We want you to interview your candidates and find out which one works best for you and your project.

It's important to have this kind of quality information because it saves you time, money and loads of hassles. This is the exceptional, in-depth service on which Foreclosure.com has built its reputation.

We want you to see for yourself just how easy it is to find the property of your dreams and get moving on turning a profit. So feel free to create a FREE account on our Web site and explore your desired area(s), earmark the properties that catch your eye and get in touch with the people who can help you make it happen.

Remember, if you don't have to struggle to find the right people, you can focus on what's really important: Closing deals fast and putting your stacks of cash in the bank.

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Hot off the press

OH-BAMA:
MORE HOPE FOR HOMEOWNERS

Less than two months into his presidency, President Barack Obama is starting to make good on his promises.

The part of the economic stimulus package that deals with the struggling United States real estate market is being ramped up in an effort to cope with the ever-falling home prices and increasing foreclosure rates.

First, there's the new $8,000 federal housing tax credit for first-time homebuyers buying their primary residences. Unlike the 2008 tax credit, which was intended to do much the same as this year's rendition, the $8,000 does not have to be repaid.

Qualified purchasers have until December 1, 2009, to take advantage of this incentive program, but even those buyers who bought earlier — between April 9, 2008, and January 1, 2009 — may still be eligible for $7,500. These are welcome tax breaks for those struggling through tough economic times.

President Obama also plans to earmark about $50 billion in TARP funds to rescue homeowners from mortgage default and revamp the mortgage industry as a whole.

The money is likely to be geared primarily toward those who have little equity in their homes and/or are spending too great a percentage of their incomes on mortgage payments. The projected result is more affordable mortgages and legislation to prevent buyers from getting in over their heads right at square one.

For investors, these efforts mean that an end may be in sight for foreclosure deals. Although it's probably still quite a few months off, it's a good idea to get started now by building your distressed property investment team and surrounding yourself with experts who can help you profit from this waning real estate situation.

Of course, the question on investors' minds is still, "How long?" The American economic situation has yet to show overly tangible improvement, although it does seem that help — and hope — are on the way.

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Our success stories

BRAD'S BEEN THERE

If you don't know who Brad Geisen is then get ready: You're about to meet one of the nation's most successful real estate magnates.

Yes, Brad is the founder and CEO of Foreclosure.com, but that's not all.

He also has held more consecutive contracts with the Department of Housing and Urban Development (HUD) than anyone in the business. Why? Because his initial contract resulted in more than $115 million in closings, as well as the seedlings of what is now the most successful means of acquiring and marketing distressed properties: Foreclosure.com.

So, how did Brad go from your average newbie investor to having more than 5,000 sales under his belt? The same way that you will: Through education and surrounding yourself with a successful team.

If Brad knows one thing it's that no one succeeds all by themselves. Brad's real estate and mortgage broker training gave him a great start in the field. The people who he learned from and made connections with during those years were invaluable.

Follow in Brad's footsteps by getting some training yourself. You don't have to become a broker, but Foreclosure.com has some great courses and Webinars to teach you the ABCs of distressed property investment. Both of these are excellent options because you'll have opportunities to chat live with real gurus who can help you along the way. The more learning and networking opportunities you have now, the better you'll do later on.

When Brad actually bought and sold his first property, it was as exhilarating as it was or will be for you. It was challenging, yes, and there were problems, but it got easier. Today Brad has an extensive network of reliable and hardworking contractors who do excellent work on tight budgets. It's yet another way to squeeze more cash out of your deals.

Nearly two decades after he begun, Brad's real estate team is now so big that it stretches right across our country and beyond. He's got access to the most accurate and up-to-date information on distressed property listings, low-cost lenders, local contractors and much more ...

... and he's sharing it all with you through Foreclosure.com.

Part of Brad's mandate as a real estate expert is to be an educator. That means sharing his wealth of knowledge with other investors who may wish to follow in his footsteps. Foreclosure.com is committed to fulfilling Brad's mission by making your investment experiences easier, faster and incredibly profitable.

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Real estate tips

DON'T LOSE
YOUR SHIRT

Contractors are key to a successful property rehab and, unless you're a veritable jack-of-all-trades, you'll need to rely on contractors to get the job done.

Unfortunately, contractors in general are notorious for overcharging for shoddy work, not finishing on time and sometimes not finishing at all.

Finding contractors you can trust is one reason many people hesitate to get involved in distressed property investment. However, you don't need to be an expert yourself to find people who will do the job right. All you need is a willingness to do some research and identify a resource or two that you can trust.

Foreclosure.com is the perfect place to start.

Take a look in our Web site forums to find people in your area who have used both good contractors and bad. Many investors share their experiences in the forums for the benefit of their colleagues in the industry; after all, most of us could use the advice of those who have gone before.

You'll also want to do an Internet search for "good contractors in [fill in your desired area]." You may have to sift through some results that don't apply, but often you'll find good information and first person accounts of experiences people have had with the trades in your area.

Big box home improvement stores such as Home Depot can also be a great source of information. Not only can you ask for leads on trustworthy contractors, but many of these stores also offer classes on basic home improvement projects. You don't need to take on the work yourself, but you'll feel a lot more confident when interviewing contractors for the job because you'll have a good idea of how the project should go and how much it should cost.

Finally, don't forget good old-fashioned word-of-mouth. Ask fellow investors or neighbors who've recently had home renovations done. Get as much information as you can on the quality of their work, the price and the timeline. You'll start to get a feel for who's in your area and how good of a job they do.

Remember that there are good contractors out there. Educate yourself, talk to others and do some research into the contractors in your area. Once you've found a great contractor, add them to your investment team and use them on future jobs. Also, ask them who's reliable in the other trades.

It's important to be informed and aware of what's going on with your project. Yes, you need to be careful when it comes to selecting contractors, but don't let a little hesitance in this area stop you from realizing your investment dreams.

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Linda's Learning Lane

Building Your "A-Team"

When building your team the first step is to have a deep understanding of what your own strengths are before you can build a team that complements/compensates your skill set. So if you are investing in distressed real estate you need to understand what your "limiting step" is that holds you back from achieving your investment goals.

For example, if you do not have the funds to purchase properties then you need to surround yourself with individuals who can partner with you as an Angel Investor or Hard Money Lender. On the flip side, if the funding is not an issue but you do not have the time or wherewithal to do the rehabbing then you would need to add a contractor to your team.

Regardless of your strengths or weaknesses, in every real estate transaction your interests are best represented when you have a real estate agent working with you. Foreclosure.com has a great resource that provides a list of agents with their professional information available to you at your fingertips. You can find that list on our Broker Network.

Other team members would be a title company that you trust, as well as a good CPA and Attorney, which are also key in building your business to succeed.

When selecting any of these team members be sure to interview them, asking for case studies, testimonials and/or references. Then it is your job to research the tools they share with you.

Don't know where to start? Your first team member should be Foreclosure.com!

By being able to access information 24/7 and having our property listing alerts sent to your inbox as new properties come up on the site in your selected zip code, you will be able to work smarter and not harder.

Communication will either make or break all of these relationships. By keeping the communication flowing you will be able to reach your investment goals.

Last but not least, select team members who will support you when times may be rough. Whether that is friends, family or colleagues in your real estate investment association, you need individuals that will encourage and inspire you in your desire to succeed at investing.

Good luck on your journey and keep feeding your mind. Knowledge is only power when it is applied. Have a great month!

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