Making the Foreclosure Crisis Pay Off
Archives: Daily Issues
Issue #2619
- WEALTHY: A crash course in a popular real estate investment strategy (Jeff Adams)
- HEALTHY: Reduce your stress in 50 seconds (Kelley Herring)
- WISE: Emily Dickinson on taking advantage of every opportunity
ALSO IN THIS ISSUE:
- The one trait shared by all successful entrepreneurs (Rich Schefren)
- Read this before you whip out that checkbook (Jason Holland)
- It’s Good to Know… how to get your business in the news
- Add “yegg” to your vocabulary
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” Not knowing when the dawn will come, I open every door. “
Emily Dickinson
Foreclosure Investing: How to Wholesale
By Jeff Adams
As a real estate investor, you can stand to make serious amounts of money. But these days, with 5.4 million Americans behind on their mortgage payments and pending home sales dropping, you might think real estate is a bad bet.
Not true.
I’ve made over 350 real estate deals in the past 14 years – many of them in this terrible market. And in my experience, one of the best ways to cash in on real estate is by wholesaling foreclosures.
I remember one house that had a value of $1.9 million but had been standing vacant for four years. I ended up buying it for $1.2 million and wholesaling it for $1.5 million. In just a few days, the seller was relieved of a crushing financial burden, the buyer was patting himself on the back for getting a great bargain, and I was on my way to the bank with a check for $219,797.58.
In real estate, wholesaling means entering into a contractual agreement with another party for the purpose of purchasing a property, and then assigning your interest in that contract to another investor in exchange for compensation.
The business of wholesaling is not just a trend in the real estate market. It is progressively gaining momentum and popularity with both new and experienced investors. No license is needed, so just about anyone can do it. Plus, turnaround time is quick. The basic idea is to get in, get out, and get paid.
Foreclosed property is especially attractive to wholesalers because it’s owned by a bank, not an individual. The bank wants to get rid of it as soon as possible – and that gives the investor an advantage.
The foreclosure process varies depending on whether the state is judicial or non-judicial. In judicial states, foreclosure requires legal action; non-judicial states do not deem it necessary.
In non-judicial states, the borrower can grant the power of sale directly to the lender. After the borrower fails to make several payments on his loan, the lender files a Notice of Default (NOD) and the foreclosure process is put into effect. After about three months, the lender files a Notice of Sale (NOS). The property is now in control of the bank – listed on its books as Real Estate Owned (REO) – for 21 days until the actual foreclosure sale.
Depending on where the property is in the foreclosure process, you can buy it by approaching the homeowner directly, purchasing it at a public auction, or buying it from the bank.
Approaching the homeowner directly gives you the ability to negotiate terms and offers the potential for huge profit margins. But you have to deal with title, liability, and legal issues.
Public auctions, too, give you the potential for huge profit margins. But, again, there are some significant negatives. For one thing, you have to make the purchase with cash (unless you are purchasing from a real estate disposition company, such as the auctions you see put on by USHomeAuction.com and HudsonandMarshall.com). For another, the property is sold “as is.” If you want to have it inspected by a professional, you have to incur that expense before you even bid on it.
The profit margin can be substantially higher when you buy from a bank. You can (usually) get the property inspected after you’ve made the deal and void the contract if the inspection uncovers anything seriously wrong. Plus, there is no need to worry about title assignment or other legal issues.
When you are making an offer on a bank-owned property, you can write up the offer in the name of a land trust, and then simply assign your beneficial interests in that trust to your wholesale buyer. Or you can write the offer in your own name and, at the bottom of the contract, include this clause:
“Vesting to be determined at close of escrow.”
This allows you to take title in any entity, including your wholesale buyer’s name. The reason you want to do that is because banks will not let you assign your contract to a specific person. If you put “and/or assigns” on your contract, your offer will not be accepted.
The deal is now complete, and you can go on to the next one that is just waiting to be found.
[Ed Note: Jeff Adams is a self-made multi-millionaire who has bought and sold more than 350 properties in the last 14 years. Over the last 10 years, he's found and sold his deals using the Internet. You can get more of his advice and his free course for a limited time by visiting www.ForeclosureProfitSystem.com.
If you can't (or don't want to) take on real estate investing full-time, Jeff's system of attracting buyers, sellers, and investors with automated websites can still help you make big profits by leveraging the power of the Internet. Get all the details at ETR's upcoming Profits in Paradise wealth-building summit. But hurry! Our Early Bird Discount ends today at 5:00 p.m. Eastern.]
Economic Uncertainty = Deep Profits for YOU This Year?
Don’t let the talking heads of the mass media frighten you into inaction!
A troubled marketplace means MASSIVE opportunities for those in the know. Yes, I’m talking to you…
This April in sunny Orlando, Florida, Early to Rise will prove that YOU can enjoy passive income streams that profit regardless of what the economy does.
Join us at our exciting “Profits in Paradise” Wealth Summit. You will learn how easy it is to set up a variety of income streams that churn out cash month after month – and these profit streams are NOT dependent upon what the market does.
Moreover, we’ve lined up a “Dream Team” of experts in their respective fields, based on a documented track record and ability to teach and share what they know.
You get it all – soup to nuts – action steps for everything from boosting your present income… to quickly setting up profitable online businesses that throw off profits – even in economic downturns.
Plus, once you’ve got a system for setting up passive income streams, we will hand you proven, actionable strategies for swelling your portfolio in record time.
Nothing will be left to chance when your success is on the line. And every idea and action step is presented in clear, “beginner friendly” language you can immediately use.
Hurry and you will lock in the low price for early bird registration. Don’t wait until the price jumps tonight at 5:00 p.m. Eastern. If you are serious about quickly amassing great wealth – even during uncertain economic times – this is your best opportunity.
Register today and you will lock in the lowest possible rate for early bird registration.
The Importance of Being Urgent
There’s one thing that all successful Internet marketers and business owners I’ve come in contact with have in common.
A sense of urgency.
Successful entrepreneurs look at practically every moment of every day as a challenge -and they attack it accordingly. This need for achievement motivates them to turn their ideas into action.
On the other end of the spectrum are “passive” entrepreneurs. They live every day pursuing their dreams safely, never taking risks or pushing the envelope, and hoping something good will happen.
I’m not just talking out of my keister here. I’m a living, breathing example of a former passive personality.
It wasn’t until a mentor shook me from the doldrums and forced me to take that first step into the unknown that I started to see some serious results.
Why? Because successful people act from a sense of urgency.
So today, I want you to do exactly what I did. Ditch the passive nature and begin looking at your dreams with a SENSE OF URGENCY.
Tell yourself, “Today, I’m going to make a change and act from a sense of urgency. And these are the first two actions I’m going to take…”
[Ed. Note: Rich Schefren - one of the world's best small-business strategists - knows a thing or two about what it takes to be successful. The businesses he coaches have done over $500 million every year - piling up more than $1 billion in sales every two years. Visit his blog to learn how to streamline your business while skyrocketing profits.
The ability to sell is another trait shared by successful entrepreneurs. If you don't know how to sell, you're LOSING money. It's time to amp up your selling skills. You can learn how to do it from Gene Schwartz, one of the world's best copywriters. Get the details here.]
Past Due Bills of the Deceased
The death of a loved one is tough enough. But hearing from debt collectors just weeks after the funeral makes it much worse.
Before you make any promises to “settle” your relative’s accounts, whether a cellphone bill or credit card debt, know this: You probably don’t have to pay a dime out of your own pocket. The debt can be paid with the deceased’s estate and whatever you have inherited from it. But, although laws vary from state to state, heirs are not usually required to pay off the deceased’s bills with their own money.
That doesn’t stop collection agencies from asking you to do just that by using carefully worded language. Some even position themselves as helping you with payment plans.But if you ask them directly, they should admit that you do not have to pay.(Source: The New York Times)[Ed. Note: How to deal with unsavory creditors is just one of the dozens of tricks and techniques to improve your life at work, at home, and everywhere in between that you'll learn with ETR's Unscrew Your Life newsletter. Sign up today and get a valuable free guide to getting past hundreds of life's little irritations.]
Stressed? Try Vagus
The effect of stress takes a nasty toll on your life. But it doesn’t just damage your psyche. It harms your body too.
Stress increases dangerous inflammatory factors called cytokines… damages the hippocampus, causing memory loss and mood disorders… reduces the brain’s ability to repair itself… increases abdominal fat… interferes with thyroid function… and even increases the stickiness of the blood (which can lead to dangerous clots).
But there’s something very simple you can do to help alleviate the effects of stress. Stimulate your vagus nerve.
The vagus nerve controls the relaxation response through the neurotransmitter acetylcholine. And this anti-stress machine can be turned on in a matter of minutes.
Here is the exercise.
Take a deep breath into your belly to the count of five. Pause. Breathe out slowly to the count of five. Keep your belly soft. Repeat 5 times.
With this simple and effective exercise, you instantly reduce your levels of cortisol and help your body get back to a peaceful state of balance.
In addition to a few minutes a day of soft-belly breathing, you can bolster your body’s defenses against stress by engaging in regular vigorous exercise, eating a clean diet of healing foods, and enjoying fresh air and sunlight.
[Ed. Note: These days, you've got more stressors than ever before. If stress doesn't kill you outright, it most likely WILL plunge you toward all the diseases of aging, much faster than you deserve! Learn how to make your body more resilient to stress, so you can have the health and energy you need to build a brighter future.
Eating right goes a long way toward making you feel better. Pick up a copy of nutrition expert Kelley Herring's collection of recipes for dozens of delicious and guilt-free desserts. Pick up your copy today.]
It’s Good to Know: How to Get Your Business in the News
Coverage by the media can give a great boost to your business. But reporters and editors are a picky lot. Here are six ways to convince them your “story” is worthy of a mention.
• Make sure all your contact information is included in e-mails, press releases, and other communications with the media. If a reporter has to spend more than a minute figuring out how to reach you… she’ll move on to the next candidate.
• Have your elevator pitch down pat. You should be able to tell an editor, in a minute or less, why your business should be in their publication.
• Figure out how to tie “hot” news of the day into something you are doing with your business. Pitch your story with that angle.
• Check thoroughly for typos, grammar, and factual errors on all communications. Nothing irks editors more than sloppy writing.
• Make sure you contact the right media niche. If your business is in pet supplies, don’t send press releases to an automotive trade journal.
• Make it easy for a reporter to write a story about you by including plenty of quotes, facts, and examples in your press release. And put the most important information near the top.
(Source: Inc.)
== Highly Recommended ==
How to “Unscrew” Yourself from Life’s Little Frustrations
(and the Big Ones, Too!)
When you get stuck in a royal mess – and we all do sometimes – here’s how to get out of it looking squeaky clean and grinning like a Cheshire cat…
Got a speeding ticket and afraid your insurance premiums are about to skyrocket? Don’t sweat it. I’ll show you the smartest way to legally beat the ticket – without hiring an expensive lawyer to plead your case.
Hate jury duty? Let me show you how to escape it – even if the court clerk refuses to grant you an exemption. Frustrated with airport waiting times due to tightened security? I’ll reveal how to cut your airport waiting time in half!
Listen: No matter which of life’s frustrations come your way, there are clever ways to easily get out of most of them. I’m even willing to share them all with you – FREE! Click here to learn why.
Word to the Wise: Yegg
“Yegg” (YEG) is slang for a safecracker.
Example (as used by The New York Times): “‘A train robber is better than a public yegg’ has been the campaign slogan of A.L. Jennings, train robber and member of the famous Dalton gang, who was nominated in today’s [August 8,1912] primaries for County Attorney over a half-dozen opponents.”
[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]
Copyright ETR, LLC, 2009
The “Profit Foreclosure System” just happens to be closed while they process all orders. Of course they want your email address. Probably to hit you up on some other offer that is not what was initially offered in the ETR newsletter.
The “Profits in Paradise wealth-building summit” event looks like a platform marketing upsell live infomercial. The usual cast of ETR wealth builders will be pushing their books and tapes.
Hey, if all these techniques are so profitable, why go through the hassle of seminar promotion?Just use your own material and make money.
Great articles