How You Can Earn Money As a Rookie Foreclosure Investor

A remarkably simple yet powerful and profitable strategy used by foreclosure investors that requires no investment cash, is called 'assignment' or 'flipping'.

No special license is needed and it can put a nice chunk of cash into your pocket. This type of foreclosure training is available.

Once you've invested the time learning and mastering this type of transaction and find out how lucrative it is you’ll wonder why you ever worked a regular job. Your hourly pay rate can easily be over $100.00 an hour when you analyze how much time you actually put into each deal.

Your critical initial step is first sourcing properties in default that fit specific criteria, and step 2 is learning the step-by-step process of how to approach, structure and close the deal. Again, finding the right foreclosure training is critical (A link to great training manual is provided below, perfect for total beginners.)

The successful foreclosure investor first must source a property that is in the early stage of default, hopefully less than 30 days. Also, you are looking for homeowners that have built up equity but for whatever reasons are unable to continue making payments.

Say for example you've sourced a homeowner in default whose monthly mortgage payment is currently $1,100 but can't afford to continue making the payment. Liquidation is the homeowners best option and decides selling the property to YOU is the best way out.

You'll want to make an offer on the property quickly but no more than 65% of the 'as is' value. To simplify lets say the house is worth $300,000, 'as is'. You know this because of your 'due diligence' performing a thorough comparative analysis of comparable homes in the area. The payoff on the home is $175,000. You offer to buy the home for $195,000 ( 65% of the 'as is' value) which they gladly accept.

And why not? Letting you buy the property at that price would pay off the 1 month owed on the mortgage, stop the foreclosure process and give the distressed owners some dignity in the form of cash and an exit strategy. You've acheived a win-win situation for yourself and the homeowner.

What do you do next? Do you keep the property and fix it up for possible sale or lease?

NO, you know an easier way - which you'll find out is 'assigning the contract' - so you decide NOT to keep the property.

You have something in your hand that is extremely valuable - the contract to purchase a property priced below current market value. This is the basis for 'assigning ' the contract.

Next, you'll need to find an interested investor to 'assign' the property. Since the home will be worth $300,000 on the market, right now, do you think an investor that has more money than timewould pay $195,000 for the right to own a $300,000 property? You bet, and within a short period of time investor cash will be flying at you.

Ultimately the final purchaserwho ends up buying your contract will pay $195,000 plus whatever you charge for your finder's fee. for example, if you charge 6% as your finders fee - you just made $11,700 for only a few hours work!

This translates into a pretty good hourly rate, definitely worth your time.

Why not learn the lucrative art of 'assigning' foreclosure deals? There is no better way to jump into the world of foreclosure investing WITHOUT SPENDING ANY OF YOUR OWN CASH.

You can visit the link below for details and how to get started.

Article Source: http://www.real-estate-article-directory.com

Leslie Collins has executed hundreds of preforeclosure deals in the last 5 years - which actually helped distressed homeowners as well as generated thousands of dollars in profits. Interested in learning about assigning foreclosure contracts for profit? - Visit: Foreclosure training

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