Why You Should Buy Instead of Rent

Realty Robot Newsletter - January 25th, 2011

Big news in real estate.  Months after the “robo-signing” debacle, the foreclosure process is under intense scrutiny once again, this time involving notice of defaults and the foreclosure process in non-judicial states such as California.
 
Many of these foreclosures are currently under review, while a number of banks, including Bank of America and JP Morgan, have put a temporary hold on notice of default filings.  We may see a temporary dip in foreclosures in non-judicial states nationwide.  However, as New Jersey is a judicial state, foreclosures in your local area won’t be affected very much.
 
Link: The Next Robo-Signing Crisis?
 
In other real estate news, the S&P/Case-Shiller Home Price Indices released today showed declines in home prices in 19 of the 20 metro areas between October and November of last year. Only home prices in San Diego increased. Overall, home prices have dropped so significantly that it is currently cheaper to buy than rent in 36 of the 50 largest US cities. 
 
Link: City Where it's Cheaper to Buy Than Rent
 
Link: S&P/Case-Shiller Home Price Indices Report

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The Holy Grail of Real Estate Investment

With foreclosures on the rise this year, you can expect mortgage lenders to only tighten their already strict lending policies. This means real estate investors will find it much more difficult to secure a loan on their investment properties. Even the best credit won’t guarantee a loan. Therefore, now is a crucial time to find other sources of funding for your projects.
 
One of the most useful tools a real estate investor can possess is a list of cash buyers. Having the ability to purchase a property in cash can save you a lot of time and headache. And in times like these it’s almost necessary to have contacts that can provide quick funding. Now is when homeowners are in dire need of money and, therefore, selling super cheap. Investors have a great opportunity here, but mortgage lenders remain a huge obstacle. You can be smart and get over this hurdle just by knowing a few cash buyers.
 
If you don’t know where to find cash buyers, there are plenty of places you can look. For one, the Internet is always a good place to start.

·  Browse through a variety of real estate forums, such as BiggerPockets.com or ActiveRain.com . You’re bound to find cash buyers looking for deals.

·  You can attend an auction sale at the courthouse. Bidders must have a large amount of cash on hand, so just pull them aside and develop some rapport with them. 

·  You can also ask your local realtor if they’ve had any recent cash buyers. Agents work closely with their clients and would have this kind of information. 

·  Finally, you can get in touch with your local apartment association. Do a little digging and you may be able to find a property owner who possesses some investment cash. 

 
Locating sources of cash buyers is not hard at all. Just think about the different types of investors out there, and don’t be afraid to contact them. They need you as much as you need them. So if you want to close more deals this year, go out there and start building your cash buyers list now!

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Realty Robot | Foreclosure Matchmaker

Wholesaling in 2011

Realty Robot Newsletter - January 11th, 2011

Now that 2011 has arrived, some of you may just be getting started in real estate investing. We want to help you get comfortable and maybe get rid of any jitters you might have. One of the biggest concerns of real estate investing is building capital. Well, what if we told you that you could make a few thousand dollars without investing a single dollar? You bet you can!
 
The way to do that is wholesaling. Rather than flipping a property yourself, try flipping a sales contract instead! There are always investors looking for an awesome deal. If you stumble upon an incredible real estate deal but don’t have the investment funds, you can simply put the property under contract and sell the contract to an investor who does have the money for thousands of dollars! This requires absolutely no cash investment at all. Do this a few times and you’re on your way to buying your own investment property!
 
Let’s put this into perspective. If there is a property that will sell for $200k after repairs, it requires $15k in renovations, and you were able to put it under contract for $140k, then you could easily find an investor willing to pay $145k-$150k for that contract, earning you up to $10,000! It is that simple. Wholesaling can be extremely rewarding. The only investment required is your time and effort, and you can walk away from a deal thousands, if not tens of thousands, of dollars richer.
 
If things are tight and you’re in need of a little extra cash, don’t be afraid to give wholesaling a try. A little bit of work can lead to enormous benefits. As we said previously, start the year off with a bang! It will give you the momentum you need throughout the year.

Download your weekly pre-foreclosure list.

Realty Robot | Foreclosure Matchmaker

Happy New Year!

Realty Robot Newsletter - January 4th, 2011

I hope you’re excited to start investing again in 2011! Let us help you out by telling you what you should expect from the real estate market at the turn of the new decade.
 
If you’re an investor with a niche for short sales, then you’re in luck! The number of defaults and foreclosures is expected to increase dramatically this year, up to 33% over 2010! That is a tremendously significant figure. There is, of course, a variety of reasons for this prediction, but two stick out as very noteworthy.
 
The first you should know is that a large amount of adjustable-rate mortgages are set to adjust this year, making interest rates less bearable for millions of homeowners. This includes 10-year, 7-year, and 3-year ARMs. Homebuyers with ARMs who were misled by a low initial interest rate and those greatly affected by the unrelenting downward economy will undoubtedly find themselves in foreclosure this year. So look out for a surge in the number of NJ pre-foreclosures as the year progresses!
 
Secondly, a surprising number of homeowners are becoming much more savvy and have adopted a new method to get themselves out of being underwater, known as strategic default. Although it isn’t a new tactic, it has only recently become more popular. As many as 1 million of these opportunists, though normally current with their mortgage payments, have simply walked away from their underwater properties and allowed them to be foreclosed upon. They instead choose to purchase lower priced homes or rent with the intention of buying low in the future. Needless to say, this homebuying strategy places even greater pressure on the US economy, further depressing home values.
 
These are two reasons that you as an investor should remain highly vigilant in the upcoming year, especially with homeowners, as you take advantage of continuing low property values. So get pumped and look forward to much more opportunity in the next 12 months! Don’t slack off now. Dive in to your first NJ pre-foreclosure lists of the year!

Realty Robot | Foreclosure Matchmaker