6 Big Reasons To Invest In Pre-Foreclosures

1. In their mortgage when people are in default they have to stop payments paying to banks. So when you are negotiating towards seller, and the bank, where you buy until you must not provide payments.


2. One of the most deadly mistakes done by rookie investors are that they try to be a jack-of-all-trades, going after any and everything they can lay their eyes on ,so it leads to lack of focus to get back at their jobs. By being a very defined market, preforeclosures allow you to develop focused marketing campaigns and standardized processes to get deals completed and closed.


3. Contacting and Talking is the one of the fundamentals of real estate investing to motivate sellers, and avoid risk. Sellers in preforeclosure are some of the most motivated sellers that you find. Buying houses from people in preforeclosure, creating 30%+ equity spreads on houses often in good condition without any difficulty.


4. Purchasing houses in preforeclosure enables you to create large equity spreads.The economic uncertainty is the reason for the foreclosures, and rising rates will cause more in coming years. If banks takes all the properties that went into foreclosure then FDIC would shut them down. They know this, so they try not to take properties back they don't have to.


5. The lenders are put under pressure to liquidate bad loans rather than taking the property back, large discounts can be negotiated. If you want to buy and hold the property, you must need enough credit and financials to get bank financing excludes a great many people from getting into real estate.


6. If you get a bank loan, your financial exposure is at it's maximum when everything is in your own name and personally guaranteed. Buying houses in preforeclosure will allow you to simply take over the existing financing already in place. You can provide title to your property by making payments on the existing mortgage, with all facilities such as tax advantages, appreciation, depreciation without any of the risk of being personally liable for the mortgage and the property.