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New investors should be learning short sales and branching out from this key investment method.
The real estate investing market has taken a huge hit in recent years.
Everyone knows that the economy will return to high levels again.
Nothing stays down forever.
The amount of foreclosures on the market means more and more people have flocked to that style of investing.
They're working with banks to earn their trust and gain deals on foreclosures.
New investors should look at the process prior to foreclosures.
A short sale takes place between an investor and the lending bank.
The seller must be in compliance with the process.
They should want to receive help from the short sale investor.
The investor will be their partner, of sorts.
They're going to help them achieve something they didn't think possible - getting out from underneath a suffocating debt.
When a home owner falls behind on their mortgage, banks typically begin the foreclosure process.
To prevent that process from happening, the seller must either pay the outstanding balance or sell the home.
When they sell the home on the open market, they're often looking at losing quite a bit of money and it often doesn't happen soon enough to appease the bank.
The short sale process can prevent the foreclosure from happening and save a lot of hassle for both parties involved.
To find short sale prospects, one must somehow market their interest to the community at large.
As an investor, you're looking for people who need help and are willing to work with you so they don't have their house foreclosed.
Sure they will lose the house, but you're saving them time and their credit score.
Where do you think the best places to advertise to these people would be in your community? Finding the sweet marketing spot can lead to hundreds of leads from a single ad.
While you won't be able to service all the leads, you can do research and find out the juicier deals for your business.
And running an investing company is a business.
You're looking to create relationships with these people and turn the ultimate short sale into easy profit for you.
The process can be a bit daunting for newcomers.
Those who have a background in investing should take to it quickly.
Like anything else, it just takes doing it a few times to really become comfortable with the process.
It is work though.
Don't expect thousands of dollars to fall into your lap.
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