How To Become Wealthy

How do you know what real estate investing approach is best suited for you?Many years ago, we learned about the power of foreclosure investing.When attempting to explain foreclosure investing, you could cover a wide range of topics from a homeowner missing their first mortgage payment all the way to the house selling at the courthouse steps.

Then came pre-foreclosure investing.  Pre-foreclosures really have everything to do with what happens from the time a notice of default is filled at the local courthouse and whether or not the house ever makes it to the courthouse steps. 

Reason 1 - Sellers Have A Very Compelling Reason To Sell

I don’t know why homeowners who fall into pre-foreclosure do the same thing every time, but they do.  In virtually every case, when you see this situation develop, the homeowner is usually going to fail to make a mortgage payment and the property falls into foreclosure.

When a homeowner fails to make the mortgage payment, it’s usually very difficult to catch up and regain that former financial stability.

The leading factors that cause someone to fall into pre-foreclosure are:
1. Divorce
2. Job loss
3. Extended or prolonged illness
4. Employment transfer
5. Drug and/or alcohol dependency

Homeowners who find themselves in pre-foreclosure almost always have to sell in order to avoid having the house sold off at auction.  Experienced property investors know that when they help sellers first, they are then rewarded with these steeply discounted investment properties.

Reason #2 - Less Competition For The Experienced Real Estate Investor

Many who consider themselves pre-foreclosure investors don’t know a good deal when it’s staring them right in the face.These investors focus exclusively on classified ads and buy investment property at retail prices.  Some of these investors may work with a real estate agent and attempt to find invesment property - but these are still listed properites with retail prices.

You can never really get ahead in the real estate investing business if you’re paying retail for investment property.As an experienced pre-foreclosure investors, you must learn how to buy investment properties at wholesale prices.

Serious pre-foreclosure investors do not pay too much for investment property and normally do not work well with real estate agents.  These investors know how to search out and find the best real estate investing deals on the market.Pre-foreclosure investors don’t wait around for something to happen - they go out and meet these sellers. 

Now some pre-foreclosure investors mail out post cards and make phone calls in attempts to contact sellers in pre-foreclosure.I have found the most effective approach to pre-foreclosure investing is to physically travel out to each house and meet with the homeowner. 

What’s great about this approach is that it offers the higest return on investment with the least compeition.  Pretty good combination if you’re trying to build long term wealth.