Welcome to The Mentor Network’s Real Estate Investing Platform.
This platform is open for you to participate by asking questions, sharing knowledge and networking with other individuals that are building their real estate business.
It’s an ideal place to explore what’s working in today’s market and for discussing the market conditions throughout the nation- to keep moving forward as it pertains to all techniques related to real estate investing.
This platform offers various courses with awesome content, articles, home study materials , videos, mp3, podcasts, various forms, checklist, tools and techniques, and many more.
Check out RealtyTrac, the nation’s leading online foreclosure marketplace and the most trusted source of foreclosure information:
Nationwide Foreclosure Listings –
Foreclosure News & Trends – monthly and quarterly foreclosure rates
Foreclosure Education – extensive knowledgebase and learning resources
Foreclosure Help – assistance for those facing foreclosure
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Courthouse Auctions: Mining Foreclosure Gold By Octavio Nuiry
Every week, tens of millions of dollars worth of foreclosed real estate is sold nationwide at sheriff’s sales and trustee’s sales, and savvy investors are finding a few golden bargains mixed in with many lumps of coal at these public foreclosure auctions. Investor Gregory Metcalf in Orange County, Calif., said sometimes he’ll scoop up five or six properties in a day.
“This is a highly specialized area of real estate,” warned Metcalf,the dean of the auction bidderswho buys 500 to 600 properties a year and shows up daily at each of the Orange County trustee sales in Santa Ana, Orange and Placentia, Calif. “You would be foolish not to get training to learn how to work courthouse auctions. Spending $3,000 or more on training is nothing, because if you make a mistake here you’ll get killed.”
Last year, the auctions were largely deserted, with only a handful of the “regulars” attending the sales.
Not anymore. Now, from Malibu to Manhattan, courthouse auctions are attracting large crowds of bidders and gawkers — and investors are snagging bargains left and right. With the housing market enduring one of the largest declines in housing prices since the Great Depression, Metcalf and other regulars have an unrelenting cascade of foreclosures to select from. Sales are stalling, however, because delinquent borrowers are renegotiating the terms of their loans with lenders, working out new payment plans with banks. Some borrowers are filing for bankruptcy, delaying the foreclosure process. Others sell their distressed dwellings ahead of the auction via short sale. The rest go back to lenders.
Shrewd auction buyers won’t bid on underwater properties unless there are huge discounts and a potential to make a quick buck.
“In a declining market, you have to be very cautious about what you are buying,” warned attorney Ward Hannigan, owner of InnoVest Resource Management, a San Diego-based firm that specializes in buying courthouse auctions and a private, one-on-one foreclosure trainer. For one thing, cautions Ward, buying a house at auction is far different from buying a house through a broker. And though auctions offer a real opportunity to find a house at a lower-than-market price, the risks, he said, are real.
Mining the Minefield
As Hannigan, Metcalf and other regulars have learned over the years, no minefield of American real estate is as explosive and dangerous as foreclosure sales. Buying at the foreclosure sale is plagued with risks. Most defaulting properties have multiple loans, and buyers need to verify that they are bidding on a property that has no senior liens. For protection, buyers should hire a title search company to make sure the property is not encumbered by liens.
Experts said the most important rules when buying at auction are to have an exit strategy, don’t get too greedy, and be patient waiting for the best deals.
Understanding and Navigating Your Way Through the Foreclosures Process By Rick Sharga, RealtyTrac Vice President of Marketing
Foreclosure properties can be a terrific investment, or give home buyers a much more affordable option than traditional properties in this time of escalating prices. But, before you jump in assuming this is “real-estate for dummies” or the next get-rich-quick scheme, think again! You really need to know your stuff when it comes to navigating your way through the process and making sure you’re getting the most bang for your buck.
“For people willing to do some homework, the foreclosure market offers some of the best opportunities in real estate today,” explains James J. Saccacio, chief executive officer atRealtyTrac, the leading online foreclosure marketplace.
Web-based services like RealtyTraccan help investors and homebuyers tap into this previously hidden market by providing access to foreclosure and pre-foreclosure information typically available only to professional real estate brokers and investors. Today, homebuyers can use these services to identify and research potential home purchases, as well as to find the tools and professional resources they need to help them close the deal.
When offering advice to buyers interested in taking advantage of the foreclosures market, Saccacio stresses the importance of educating oneself about the types of properties and the processes involved. Even seasoned real estate investors have something to learn when it comes to approaching this market. It’s important to go in with the appropriate knowledge.
Types of Properties Available at Various Stages of the Process
Serious buyers must first understand the difference between the varying types of foreclosure properties. It’s important to review the basic types of properties, each representing a different stage in the foreclosure process.
Pre-foreclosure Properties
A property enters pre-foreclosure after a default notice is filed by the foreclosing lender against the borrower who owns the property. The different notices that are filed during pre-foreclosure include Notice of Default (NOD), Lis Pendens (LIS), Notice of Trustee Sale (NTS) and Notice of Foreclosure Sale (NFS). For most consumers, buying a pre-foreclosure property from a private homeowner is the most favorable of options. This is a best-case scenario because the seller is able to get out from under a mortgage without destroying his or her credit rating, the lender is saved the time and expense of foreclosing on the property, and the buyer gets a below-market price on a home. In addition, buying at this stage of the process allows you, the buyer, a chance to fully evaluate the property before making an offer.
The disadvantages associated with purchasing a property during the pre-foreclosure stage are few, but worth mentioning. As with any major purchase, negotiations between the buyer and seller can be difficult, especially since the seller would typically prefer not to have to sell the property in the first place. Secondly, transactions are time-sensitive, since there is pressure to complete a sale before the property goes to auction.
Auction Sales
Foreclosure auction sales are typically the domain of the professional investor. These properties are formally in default, and sold to the highest bidder at an auction. Buyers are required to be physically present at the auction and must be prepared to pay 100 percent of the sale price in cash on the spot.
Though foreclosure auctions can offer significant savings as well as immediate property ownership, they are not for the faint of heart or the uninformed! Unless the buyer is already familiar with a particular property, there is usually little time to examine it. And, the buyer will be competing against professional investors—and sometimes even the lender—at the auction.
Real-Estate-Owned Properties
Once the lender officially reclaims a home, it is classified as Real Estate Owned by the lender (REO). While REO properties typically offer more time for evaluation and a more standard bank-managed transaction, their prices are usually very close to full retail market value. Therefore, they offer buyers the lowest potential savings.
It’s definitely possible to find great deals in the foreclosures market. You just need to know where to look and be able to differentiate exactly what you’re looking at. With an understanding of the pros and cons of buying at each stage of the process, you’ll be well on your way to a successful purchase you can be proud of.
Five Tips for Buying a Foreclosure Property Below Market Value
By Jim Saccacio, RealtyTrac Chief Executive Officer
If you feel like the escalating costs of real estate have priced you out of the market, think again. It may be time to investigate the vast opportunities available in the foreclosures market.
For people willing to do a bit of homework, the foreclosure market offers some of the best opportunities available in real estate today. Experts point toward significant growth in available foreclosure properties, so there’s never been a better time to line up your resources and educate yourself about this previously hidden market. It’s not unusual to save from 10 to 30 percent of the market value on a foreclosure property, and certain properties offer savings of 50 percent or more! There really are bargains out there. You just have to know where to look.
Web-based services such as RealtyTrac give consumers access to foreclosure and pre-foreclosure information that was previously available
only to professional real estate brokers and investors. Today, homebuyers can use these services to identify and research potential home
purchases, as well as to find the tools and professional resources they need to help them close the deal. RealtyTrac, which provides all
the foreclosure data for both MSN House and Home and Yahoo! Real Estate, has already compiled a list of over 550,000 foreclosure
properties across the country.
The keys to a successful foreclosure property purchase are diligence and patience, along with taking an educated approach to investing in this market. RealtyTrac CEO Jim Saccacio offers five tips to help you close a deal on a foreclosure property:
1. Learn about the different types of properties and the foreclosure process.
Not all foreclosures are the same! You need to educate yourself on the difference between the three basic types of properties, including notice-of-default (NOD), notice of trustee sale (NTS), and real-estate-owned REO, as well as the positive and negative aspects of buying at each stage of the foreclosure cycle.
As a rule of thumb, the best savings can be made at the pre-foreclosure stage, where home owners can avoid a foreclosure and lenders can save the time and cost involved in going through the process. Another critical point in the process is immediately prior to the auction date, when all parties might be most open to a last-minute solution.
2. Secure financing early
It’s important for a buyer to be pre-qualified before engaging in discussions with a seller. This ensures that the buyer is in a financial position to purchase the property, and is in the strongest possible position to negotiate.
3. Engage a real estate agent as a “buyer’s representative”
There’s a distinct difference between a buyer’s and a seller’s representative. Buyer’s representatives have the home buyer’s interests at heart, and are charged with finding the right property and negotiating the best price for their clients. Picking the right real estate agent will make your life much easier. Ideally, select an agent who specializes in the foreclosures market and has specific experience in REO properties.
4. Do your homework
Purchasing foreclosure properties is somewhat more risky than buying traditional real estate properties. But, with that risk comes reward in the form of much higher potential savings. With the right examination and due diligence, buyers can significantly reduce the risks. As with any purchase, timing is everything! But, it makes sense to give any property under consideration a thorough examination, including determining its condition and value, finding out the amount in default and the remaining loan balance, and running a legal investing report to make sure the property is free of any financial liabilities. Of course, it never hurts to foster a positive relationship with the seller!
5. Make a realistic offer
If you want to be taken seriously as a buyer, you must be realistic when preparing an offer. Lenders aren’t likely to give properties away, particularly in a real estate market where prices continue to rise. Additionally, homeowners in financial distress may be difficult to deal with, particularly early in the foreclosure process. An educated buyer—one who knows how much is owed on the property and what its market value is—can usually come up with a realistic offer; one that offers significant savings, while meeting the requirements of the lender.
Welcome to The Mentor Network’s Real Estate Investing Platform.
