November 2009

Investment Exchange

An educational real estate newsletter

STAGING FORECLOSURES

Is anything such as flipping foreclosures ever as easy as it looks on television?

Unfortunately, the answer is a resounding "no" more often than not. The good news is that Foreclosure.com is here to make the property investment process as easy (and lucrative) as possible.

This month's newsletter takes you from finding the property of your dreams to rehabbing it to selling (or living) in it.

You'll learn how to zero in on the properties that may be of interest to you from square one, which means no more sorting through hundreds of listings that just don't meet your investment criteria.

You'll also get the scoop on getting your property fit to live in so you can either call it home or sell it for serious profits.

This information and more is all available to you in this month's edition of "Investment Exchange." No, a property flip/renovation is not the cakewalk that the media would like you to believe it is, but the financial rewards are more than worth the effort.

And the tools that Foreclosure.com can provide you will give you the leg-up you need to make the whole process as straightforward and as simple as possible.

So get ready to get educated. Remember also to always make sure you stop by Foreclosure.com to get your property search underway while there are still lots of deals to be had.

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Site feature spotlight

GET THE STRAIGHT FACTS

Thanks to television, not only does getting into the foreclosure business look fun and profitable, but it also looks super easy.

Not so ... at least it isn't as easy as those "Do It Yourself" renovation shows would have you believe.

Sure, we can help you find that perfect property that just needs a few upgrades to make you thousands. Yes, we can put you in touch with a Community Expert to give you the facts about the location, community and profit potential.

We can even put you in touch with reputable contractors in the area to get the job done.

But that doesn't mean you're off the hook when it comes to doing your homework. You've got to figure out what renovations your property needs most, which ones will stretch your dollar furthest and which ones will "wow" the most potential buyers.

That's where the Foreclosure.com e-Books section comes in.

With an entire library of titles designed to take you through foreclosure investment A-Z, you're sure to find just the information you need to navigate a successful and profitable flip.

You can start right now with our FREE starter guide entitled The Beginners Guide to Personal Wealth. It takes you step-by-step through the process, from finding that property to selling it for big bucks and everything between.

There's even a special section on the renovation process itself in the chapter "Flipping in the Real World." You get the best information on:

• What and what not to repair
• How to create your renovations timeline
• Preparing your project budget and estimates
• Tons of "Flip Tips" straight from the experts who've done it before
• ... plus much more!

With lots of pictures and helpful advice from the industry's leader in foreclosure investment, you can't go wrong with this free e-Book.

Simply sign up today for a FREE 7-day trial to receive your digital copy of The Beginners Guide to Personal Wealth. It's designed to get you started the right way on your road to riches.

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Web site search tips

ADVANCED SEARCH TOOLS MADE EASY

You're on our homepage (Foreclosure.com). You've clicked on a state and county you're interested in scoping out.

Depending on the area you've chosen, you may have thousands upon thousands of listings to sift through. And just because you've got a lot of options in front of you doesn't mean you've got a lot of options that are right for you.

This is where our advanced search options become incredibly helpful.

At the top of every search results page, you'll see a number of tabs and boxes underneath. Click on the desired tab and fill in those boxes, and you'll be taken straight to the listings that appeal to you most.

For example, let's say you're interested in preforeclosures only. Once you're on the search results page, just click on the "Preforeclosures" tab and — bingo! — your initial results have been filtered down to preforeclosures only.

That's good, but what if you only want the preforeclosures listings with photos within a certain zip code?

No problem.

Just enter the desired zip code and click on the "Search" button. Then in the "Advanced Options" area check the box next to "Photo." You can find all of this just underneath the tabs.

Foreclosure.com has customizable search options like these for every type of distressed property listing in our massive nationwide database. Simply click on the tab of your choice — whether it's bankruptcies, FSBOs, Sheriff Sales, etc. — and then fill in the boxes to shoot straight to the exact types of properties you're after.

Depending on the listings you want to see, you can search by number of bedrooms and bathrooms, price range, approximate value, city, auction date ... the list goes on and on. You can even search by defendant or debtor name, listing ID and more.

In this business, time is money. Don't waste a single second trudging through scores of listings that you already know won't appeal to you. Foreclosure.com makes it that much easier — and quicker — to find that diamond in the rough.

Practice makes perfect.

Need help capitalizing on the search capabilities of Foreclosure.com? No worries! Just watch our FREE Webinar entitled "Cha Ching! Finding Money with Foreclosure.com" for a guided tour of the very best our site has to offer.

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Hot off the press

FIRST-TIME HOMEBUYER TAX CREDIT EXTENDED

With this latest news, we here at Foreclosure.com are happy campers and you should be too.

The Obama Administration has recently announced a five-month extension of the $8,000 tax credit for first-time home-buyers.

That's right, new buyers (that's you) will be able to claim up to $8,000 in tax benefits until April 30, 2010. And if you owe less than $8,000 in taxes, the Internal Revenue Service (IRS) will cut you a check for the difference.

The latest iteration of this effort to stimulate the housing market has a few added perks, as well.

For one, the income cap is higher. Under the old rules, you had to make less than $75,000 a year as a single or less than $250,000 if you were married. This version's limits are $125,000 and $225,000 respectively — a welcome jump that will encourage even more folks to get in on the action while it's scorching hot.

In addition, as of Dec. 1, 2009, existing homeowners who've had their properties for five years or more may be eligible for up to $6,500 in credits if they purchase another property. More good news for buyers who don't fall into the "first-timers" category!

The five-month extension is great news, especially if you've got a hot property on the horizon. It can take quite a few months to close on a real estate deal, so even though we've been given a bit of leeway, the time to act is now.

And don't be lulled into thinking we're going to get extension after extension until the housing market actually picks up.

Says Senator Johnny Isakson:

"Tax credits like this only work by creating the sense of urgency to take advantage of it."

In other words, if the credit is around forever, it carries no real motivation to buy.

We hope that this latest extension has, in fact, given you a definite sense of urgency. There's no telling just how much longer these unprecedented market conditions will last.

It's a buyers' paradise like no other with mind-boggling profit potential that probably won't be witnessed again in this lifetime.

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Our success stories

YVETTE'S GETTING FOUND

Yvette Wilkinson, a real estate professional and Certified Short Sale Agent in Naperville, Ill., never regretted her decision to get involved in Foreclosure.com's Community Expert Program.

"First, it has provided me with extensive exposure for distressed property inquiries," she states.

Yes, even in a sluggish market, Yvette is benefiting from the massive exposure Foreclosure.com provides her.

"Second," she adds, "I have filled my pipeline with about 25 buyers who are actively seeking property purchases. I am currently working with a large investor group that submits six to seven offers every couple of weeks."

Six to seven offers a week can translate into a lot of sales, especially when, like Yvette, you've got a whole bunch of buyers lining up to work with you. It's this type of exposure that makes our Community Expert Program hard to beat for agents and brokers.

Yvette shares her experience with many of her Foreclosure.com leads.

"When a prospective buyer calls me from Foreclosure.com, they say, 'You are all over this site so I thought I'd better give you a call because you must know what you are doing.'"

Yvette's leads actively seek her out because her own reputation is enhanced by that of Foreclosure.com, but it isn't just her involvement with the Community Expert Program that's got them excited to work with her.

"I have received my Certified Short Sale Agent Certification [through Foreclosure.com's Agent University] and as a result, Foreclosure.com has registered me as a QuickSale^SM preferred broker," she explains.

What that means is that in Yvette's Community Expert profile, people can see that she's a short sale expert and are naturally more anxious to choose her to work with.

Better still, she's registered to bid on QuickSale^SM properties — the fastest, easiest way to get your hands on property deals for a fraction of the time and money that can be spent trudging to and from the courthouse. If you want to snap up that gem of a property before someone else does, Yvette can get it done.

Yvette's also getting ready to publish "Real Estate Short Sales: A Step by Step Approach that Gets Results!", a cutting-edge new book geared toward realtors, attorneys and homeowners who need to fine-tune their approach to pursuing short sale approval from lenders.

There is an art to the approach of getting your short sales approved at least 99 percent of the time, and Yvette is getting ready to show you how. Stay tuned for her book in 2010.

In the meantime, if you're an interested buyer in the Illinois area be sure to connect with Yvette through our broker network. She's one of the most knowledgeable, experienced and helpful community experts in our program.

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Real estate tips

TOP ADVICE FOR STAGING

Foreclosure.com Founder and CEO Brad Geisen wrote the book on foreclosure investment.

Literally.

In his book, "Get Rich Buying Real Estate Foreclosures," Brad emphasizes the importance of staging your home. It's the seventh and final step of your property rehab and you shouldn't underestimate its importance.

If you've ever watched a home-staging television show or been through some open houses yourself, you know what a difference a little thoughtful attention to detail can make.

This is especially true in a market full of reluctant and budget-stretched buyers.

To make your property shine, Brad recommends a number of practical but often-over looked tips:

1. Cleanliness. It may sound obvious that a clean house will sell better than a dirty one, but you might be surprised by how many people just don't bother to give their properties a good scrub before putting them on the market.
2. Brightness. Repair broken fixtures. Replace broken light bulbs. Add lighting to dreary corners. Most importantly, open the curtains and turn on those lights! When it's time for a showing, don't distract your potential buyers by making them fumble around in the dark for light switches.
3. Curb appeal. The best way to chase off a sale is to have the exterior of your property look awful. A dying lawn and unkempt gardens instantly lower the perceived value of your property, so don't neglect the outside when you've worked so hard to make the inside look good. Lay sod, trim overgrown trees and hedges and make sure the siding is in good shape — or your potential sale may never even get out of their car.

Keep in mind that many people simply can't envision what a house could look like with their own furnishings, effective lighting and even a basic level of tidiness. That's the reason you've got to do all the imagining for them and showcase the house as a warm, welcoming environment suited to the type of people who'd be interested in buying your property.

To get the complete list of insider secrets on how to stage your property like a pro, as well as get an in-depth look into the secret of Brad's success with real estate, check out "Get Rich Buying Real Estate Foreclosures" today.

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Deals of the Month

HOT FORECLOSURE DEALS!

Olathe, KS
$222,000
4 beds/2.5 baths
2,145 sq. ft.

Crowley, TX
$124,000
3 beds/2 baths
1,945 sq. ft.

Colfax, WI
$130,000
4 beds/1.75 baths
2,500 sq. ft.

Linda's Learning Lane

Setting the stage

Bright lights, fresh-baked cookies and cozy corners that invite you to linger:

This is the power of effective staging.

When scouting a distressed property, whether it's to live in or flip for profit, your buying decision will most likely be affected by its visual appearance. Potential questions that could run through your conscious (and possibly subconscious) include:

• Is it clean?
• Does it need paint?
• What kind of repairs will the property require?
• Will the flooring do?

As an investor, the "uglier" the property can often relate to the better the deal.

So when you think about staging a property you need to be mindful of who your buyer is and what his or her goal might be over the long term.

Accordingly, working with an agent who is certified in selling short sales and/or foreclosures will be a smart tactical move on your part. Your agent should understand that the appearance of the property along with the comparables will help determine the profit for you and them.

When staging a property stick to your budget — there is no need to go overboard.

As was mentioned previously, cleaning your property and throwing out the debris is a great first step in staging a foreclosure. The goal is to have your property stand out from the competition. As more and more foreclosures hit the market the competitive edge will go to those who make the investment in staging.

After you have sold your property, be sure to keep records of how long it was on the market, as well as take before and after pictures. This will help enable you to systematize your process, and, as you continue to buy and sell foreclosures, you will increase your profits while decreasing the energy spent.

I can taste those chocolate chips coming out of the oven now!

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