Secrets to Success

The majority of real estate investors are professional business men and women who engage in ethical behavior. In today’s foreclosure-rich environment, many scammers have emerged offering to help borrowers stop foreclosure or the promise of obtaining a loan modification or short sale approval.

Deceitful real estate investors circle like vultures, patiently waiting for their prey. They perch at courthouses, hunting for foreclosure and bankruptcy notices. Armed with contact information, these scavengers shape shift into harbingers offering relief to homeowners desperate to get off their financial roller coaster ride.

Others offer the promise of lining your pockets with handfuls of cash. They vow to teach investment strategies which allow you to purchase properties without using a dime of your own money. These smooth-talkers convince you their $2500 course will have you investing in multi-million dollar properties in a matter of days or buying your first investment property with no money down.

This is not to say all real estate investors are con artists and scammers. However, before spending your hard earned cash on investing courses, contact a local library and see if they have the course available. Oftentimes they do; allowing you to save a bundle of money, along with the stress of trying to return the course if it doesn’t meet your expectations.

The most recent real estate scams involve buying and selling distressed properties such as foreclosures and short sale properties. There is money to be made in buying properties that require repairs and renovations. However, multiple pitfalls and risks exist.

Individuals who are facing foreclosure and approached by real estate investors with an offer to buy their house need to engage in due diligence before signing over the deed to their home. Those who wish to invest in fixer-upper real estate can obtain much of the information they need online or by reading investment books offered through the library.

Investors seeking out distressed properties for sale would do well to work with other real estate investors who specialize in this niche. These investors can help locate properties across the country and save you a fortune in the process.

The secret is to locate private investors who purchase real estate owned (REO) bank portfolios. When investors purchase in bulk they obtain wholesale prices and pass along a portion of the savings. It is not uncommon to buy wholesale real estate for pennies on the dollar.

Another real estate scam involves organizations that offer paid foreclosure listings. Investors pay a monthly fee to receive updated lists of foreclosure properties. Most realtors offer local foreclosure listings at no charge. Foreclosure and bankruptcy petitions are a matter of public record and can be found though the County Recorder’s Office.

Reputable organizations that provide paid foreclosure listing services can save investors time. Experts recommend working with list providers who offer a trial version. Subscribe to two or three trials to compare properties. Be certain to cancel subscriptions before the trial period expires if you are not happy with the service. Otherwise, you will be charged a fee.

Bank owned foreclosure homes are generally published on mortgage lender websites. REO homes consist of real estate that did not sell at auction and were returned to the bank. If you are not familiar with local banks, browse the local phone directory to compile a list, than use the Internet to locate their website. Most lenders publish a link to foreclosure homes on their home page.

Falling prey to real estate scams could cost you time and money. Before purchasing investment courses or selling your home to real estate investors, take time to conduct thorough research. Doing so will ensure you are working with a reputable and trustworthy professional.