Multiplying Foreclosure Profits
Daren Blomquist
Investor plans to triple his money with first-time foreclosure purchase
Glenn Downs has been investing in real estate for years, but he never considered a foreclosure purchase until his son landed a job at RealtyTrac.
Downs signed up for RealtyTrac’s online foreclosure database and soon discovered that the primary lesson he’s learned from investing in the mainstream real estate market also applies to the foreclosure market: patience and persistence pay off.
“Anyone who’s new at this, they get all excited. They think they have to close the first deal,” he said. “Just be patient and let the deal come to you.”
The first measure of patience and persistence came when Downs was searching for properties and making offers to homeowners in default.
“I had my real estate friend make three different offers on properties that I found on your website (RealtyTrac),” he said. “They didn’t pan out. The people didn’t accept them.”
But then he found an owner in default who wanted to sell — just two weeks before her property was scheduled for public auction. That meant he and his realtor had to act fast to close the deal. They submitted an offer, which was accepted by the homeowner, then executed a quick closing through a local title company.
“We had two weeks and that’s how fast we went through it,” he said.
The payoff for Downs’ patience and persistence? He purchased the Anderson, Calif., property about 35 percent below full market value. And he helped a financially distressed homeowner avoid foreclosure and net a substantial amount of cash from the transaction. Downs also allowed the owner to remain in the property free of charge for several months to help her get back on her feet.
But that’s not the end of the story.
The property Downs purchased comprises three units sitting on six acres of property, but it is zoned as one parcel by the county. Downs plans to divide the property into three parcels and sell them separately to maximize his profits. Such a division must be approved by local government, an approval process that also requires a healthy dose of patience and persistence.
“For someone just starting out with distressed properties, I would not suggest this,” he said, noting that he’s spent thousands of dollars in fees since he purchased the property 13 months ago. “I’m not sure that I would buy a complicated piece of property like this again.”
Downs said that even if he’s not allowed to split up the property and resell it as three separate parcels — a worst-case scenario — he’ll still double his money. He’ll at least triple his investment if he is able to sell the property as three parcels.
“I knew going in that it was going to be a long process,” he said. “But the end result is going to be worth it.”
Thursday, March 15, 2007
Thursday, March 8, 2007
Texas, California, Florida post most new foreclosure filings
Texas documented the highest foreclosure total of any state for the second month in a row, with 14,728 new foreclosure filings in January — a 4 percent increase from the previous month but an increase of less than 1 percent from January 2006. The state’s foreclosure rate of one new foreclosure filing for every 547 households was sixth highest among the states and 1.6 times the national average.
California’s foreclosure total of 14,430 was the nation’s second highest and represented a 14 percent increase from the previous month. The state’s foreclosure rate of one new foreclosure filing for every 846 households registered slightly above the national average and 14th highest among the states.
Florida reported 11,709 new foreclosure filings during the month, third highest among the states and a 40 percent increase from the previous month. The state’s foreclosure total was up 13 percent from January 2006, and its foreclosure rate of one new foreclosure filing for every 624 households was the nation’s sixth highest.
Other states with foreclosure totals among the nation’s 10 highest included Michigan, Ohio, Georgia, Illinois, New York, New Jersey and Colorado.
California’s foreclosure total of 14,430 was the nation’s second highest and represented a 14 percent increase from the previous month. The state’s foreclosure rate of one new foreclosure filing for every 846 households registered slightly above the national average and 14th highest among the states.
Florida reported 11,709 new foreclosure filings during the month, third highest among the states and a 40 percent increase from the previous month. The state’s foreclosure total was up 13 percent from January 2006, and its foreclosure rate of one new foreclosure filing for every 624 households was the nation’s sixth highest.
Other states with foreclosure totals among the nation’s 10 highest included Michigan, Ohio, Georgia, Illinois, New York, New Jersey and Colorado.
Texas, California, Florida post most new foreclosure filings
Texas documented the highest foreclosure total of any state for the second month in a row, with 14,728 new foreclosure filings in January — a 4 percent increase from the previous month but an increase of less than 1 percent from January 2006. The state’s foreclosure rate of one new foreclosure filing for every 547 households was sixth highest among the states and 1.6 times the national average.
California’s foreclosure total of 14,430 was the nation’s second highest and represented a 14 percent increase from the previous month. The state’s foreclosure rate of one new foreclosure filing for every 846 households registered slightly above the national average and 14th highest among the states.
Florida reported 11,709 new foreclosure filings during the month, third highest among the states and a 40 percent increase from the previous month. The state’s foreclosure total was up 13 percent from January 2006, and its foreclosure rate of one new foreclosure filing for every 624 households was the nation’s sixth highest.
Other states with foreclosure totals among the nation’s 10 highest included Michigan, Ohio, Georgia, Illinois, New York, New Jersey and Colorado.
California’s foreclosure total of 14,430 was the nation’s second highest and represented a 14 percent increase from the previous month. The state’s foreclosure rate of one new foreclosure filing for every 846 households registered slightly above the national average and 14th highest among the states.
Florida reported 11,709 new foreclosure filings during the month, third highest among the states and a 40 percent increase from the previous month. The state’s foreclosure total was up 13 percent from January 2006, and its foreclosure rate of one new foreclosure filing for every 624 households was the nation’s sixth highest.
Other states with foreclosure totals among the nation’s 10 highest included Michigan, Ohio, Georgia, Illinois, New York, New Jersey and Colorado.
Wednesday, March 7, 2007
Three Reasons to Invest in Foreclosures in 2007
Three Reasons to Invest in Foreclosures in 2007
(with or without your own money or credit)
1. We Have More Motivated Sellers than Ever.
Foreclosures are up over 65% in 2007 versus the same period for 2006. This surge has come as those Creative Mortgage "teaser periods" expired and homeowners now have to make fully amortized payments. If their income didn't rise to meet those new payments, they are in a world of trouble. And you can help them.
2. The Real Estate Market is Healthy.
Former Fed chairman Alan Greenspan was right when he said the worst is behind us... "Weak housing markets aren't over yet, but they're getting stronger with the help of a drop in unsold inventories and interest rates at 45-year lows."
3. Investors: This is as Good as it Gets!
"Although it's impossible to know exactly when we hit the bottom on this price correction, I firmly believe that when the market heats up again this spring, we'll look back at this winter season as our best buying opportunity in six years, and wish we bought more property..." Alexis McGee.
(with or without your own money or credit)
1. We Have More Motivated Sellers than Ever.
Foreclosures are up over 65% in 2007 versus the same period for 2006. This surge has come as those Creative Mortgage "teaser periods" expired and homeowners now have to make fully amortized payments. If their income didn't rise to meet those new payments, they are in a world of trouble. And you can help them.
2. The Real Estate Market is Healthy.
Former Fed chairman Alan Greenspan was right when he said the worst is behind us... "Weak housing markets aren't over yet, but they're getting stronger with the help of a drop in unsold inventories and interest rates at 45-year lows."
3. Investors: This is as Good as it Gets!
"Although it's impossible to know exactly when we hit the bottom on this price correction, I firmly believe that when the market heats up again this spring, we'll look back at this winter season as our best buying opportunity in six years, and wish we bought more property..." Alexis McGee.
U.S. Foreclosures Up 19 Percent in January
A total of 130,511 new foreclosure filings were reported in January, an increase of 19 percent from the previous month and an increase of 25 percent from January 2006. The report also shows a national foreclosure rate of one new foreclosure filing for every 886 U.S. households.
“January’s foreclosure number represented the highest monthly number we’ve seen since we began issuing this report two years ago,” said James J. Saccacio, chief executive officer of RealtyTrac. “The month-over-month increase is similar to what we saw last January, when foreclosures shot up 27 percent from the previous month; however, the year-over-year increase of 25 percent is well below the 45 percent annual increase we saw in January last year.”
“January’s foreclosure number represented the highest monthly number we’ve seen since we began issuing this report two years ago,” said James J. Saccacio, chief executive officer of RealtyTrac. “The month-over-month increase is similar to what we saw last January, when foreclosures shot up 27 percent from the previous month; however, the year-over-year increase of 25 percent is well below the 45 percent annual increase we saw in January last year.”
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