Foreclosure investing is easily one of the fastest ways to create wealth. For example, if you want to make a million dollars by investing in foreclosures, all you have to do is flip 50 foreclosure properties that net you $20,000 each. So doing those 50 deals is just a numbers game. You will need to look at a lot of homes so you can close a single transaction. But even that can be fun in itself.
For every 100 home foreclosures that you research, only 10 will be worth investing in. Out of those 10 that are worth investing in, you will probably end up making offers to buy 3 of them. Of those 3 that you make offers on, you might only end up buying one of them. You will be faced with 99 bad ones before you get to 1 good one. You should always remember to never get emotionally attached to any one deal when investing in foreclosures.
So in other words, to do 50 deals at $20,000 net profit a piece, you would have to look at 50 x 100 = 5,000 houses. That may seem like a lot of houses, but relatively it's not. Both savvy and everyday investors can now conveniently browse through a foreclosure database of 500,000 or more properties.
When looking at it from this perspective, it doesn't seem so far away anymore, does it? All you have to do is research 5,000 homes in foreclosure, find the 500 best ones out of those, make offers on 150 of them, and close on 50 of them. And with the help of today's technology, now you can start researching thousands of foreclosures from where you are this very moment. So the big question is where will you get the money to buy 50 houses, since you can barely afford the mortgage on your own home? It's simple. You will use other people's money.
Here are some sources:
Hard money lenders.
Do a Google search on "hard money lenders" and you will find tons of them. These are private investors who are willing to lend you money for real estate projects at a much higher interest rate. It's based solely on the equity of the house and not on your own credit.
Private investors.
Again, do a Google search on "private investor" or "money partner". You can also join a real estate investment club in your local area. Someone there will definitely have connections to a private investor who is in the business of lending you money in exchange for a piece of the profits.
So that's all really there is to it. It sounds simple when you break it down to mere numbers like this, but keep in mind that the greatest obstacle to your success is your very own mental attitude. If you are convinced that you can do it, and you have the determination to achieve this new goal, then you will succeed in your foreclosure investing.
