If someone asks you 'what's the BEST way to profit from foreclosure auctions'? what would your answer be?
I BET you can't tell me and that's why you're reading this article right now, aren't you?!
Here's the real 'TRUTH' on how to profit from foreclosure auctions...
First of all, you must know exactly what a foreclosure is.
A foreclosure takes place when the owner (borrower) is unable to pay his lender the monthly mortgage payments; the lender will notify the borrower and let him know to find the money within a specified amount of time (varies in each state) otherwise the lender will be forced to repossess the home and begin the foreclosure procedure.
A foreclosure auction is held so that the lender can try to sell the home at a public location to the highest bidder for a price lower than the actual market value of the house simply because the lender wants his money back.
Secondly, you must understand how and when to bid for a foreclosure sale auction.
FACT: The property is publicly auctioned off to the highest bidder and the procedure moves fast. You'll have to compete against the lender and other investors.
Fortunate bidders often obtain unbelievable bargains far below the actual market value of the property.
Bidders can achieve up to 35% savings off market values and earn a fantabulous return on investment (ROI)
Sometimes bidders pay too much and later discover the property is in bad condition.
I bet you can't tell me what one of the major disadvantages of buying property at the foreclosure auctions is?
I will reveal that secret right now ... CASH is required, your credit card is useless in this situation.
However, here's a major advantage of buying property at the foreclosure auctions: junior loans and encumbrances are cancelled out.
What will you do if you don't have enough cash to buy at the foreclosure auctions?
The solution is to buy after the foreclosure auction, but that's covered in my NEXT article.How To Buy Bank Repossessed Houses For Big Profits.
Here are 5 major STEPS you should take if you want BIG PROFITS NOW from foreclosure auctions:
#1 STEP
RESEARCH properties prior to the sale date; find out everything you can about the properties that interest you.
#2 STEP
HUNT for real opportunities; seek those properties that really interest you and you think will bring you the results you want to achieve.
#3 STEP
DO the math; estimate the rates and possible profits if you consider to bid at an auction for a certain property.
Be persistent and work SMART, not hard!
#4 STEP
CHECK each bid price and determine how to earn a higher return on investment (ROI). Don't panic, take your time!
#5 STEP
Go to the auction and participate. Bid on the properties that interest you and that you have done your research on.
REMEMBER - do your homework first, take the 5 STEPS above and the sooner (rather than later) you'll succeed in foreclosure auctions.
Buying at the auction is your opportunity to GREAT property discounts, so INVEST your money and time wisely.
Let me finish this article with 2 quotes, I found them very interesting and useful:
1. Pierre Abelard - "The beginning of wisdom is found in doubting; by doubting we come to the question, and by seeking we may come upon the truth."
2. William Saroyan - "Good people are good because they've come to wisdom through failure. We get very little wisdom from success, you know."
Mike Upshaw operates http://www.BigProfitsInRealEstate.com
Sign-up for his *FREE* Real Estate mini-eCourse to DISCOVER the 'Secrets' to making Big *Profits* in Real Estate. Click HERE mailto:BigProfitsInRealEstate@getresponse.com or send a blank email to: BigProfitsInRealEstate@getresponse.com
