How To Buy Foreclosure Homes And Flip Them For Profit.

April 22, 2010 - PRLog -- You can easily understand the notion that following one the biggest and fastest real estate market declines that the upside of the next appreciating market cycle is HUGE.

Is there a chance to make money right now? Yes, this is a good time to buy homes at greatly reduced prices and re-sell (Flip) them for profit. Thousands of homes are sold at trustee auctions everyday and anyone can buy them.

The trustee sale is the last part of the foreclosure process. All notices have been given and the owner has not been able to get current on the mortgage payments. Now the property is sold at a public auction to the highest bidder and the lender sets the minimum bid up to but no higher then the actual amount owed on the existing loan.

It most areas these sales are all cash only. Unlike a traditional sale these auctions are as-is, where-is, buyer beware sales. Of course you must do your home work or you can get hurt. The most important upside to that's the competition is greatly reduced thus the substantial discounts.

Here is a partial list of the items you should evaluate before buying.

• What are other similar homes selling for in the immediate area

• What title conditions exist such as back taxes owed

• What will it cost to refurbish the home to get maximum value

• Is there a good re-sale market in that neighborhood

• What are all your costs such as closing costs, taxes, commissions

• If you make a mistake can you afford it

I hope you get the picture that this is simply not a risk free strategy. You most do your home work. You must have some money to work with. And you most have courage.

That said there is big money to be made if you carry it out right. As an example in my primary market (Los Angeles) every day there are many properties sold with $100,000 to $150,000 margins between the buying price and the now market selling price.

This is no exaggeration. You can check with public records to verify this. Realty Trac is a national company that gathers extensive information on foreclosures and this can be an invaluable tool in your success. Among the services they offer is notices of upcoming auctions. You will need this information to be able to pick out the homes of interest to you and begin your research.

Once you are confident you know your numbers you will go to the auction site and bid. You should visit the auction site several times before you want to bid to obtain a feel for the process. The auction sites are regularly in one or two different locations and you may see the same auctioneers representing the trustees for the lenders there. You can ask them questions and the nice ones can be very helpful.

You will likely be required to have cashiers checks and you most register with the auctioneer before bidding. Pay attention as the property can be called at any moment and when you miss it you will have to find another home and start once again.

If you win one congratulations. And if you don’t there will be another opportunity and then another. The foreclosures will keep coming for some time but eventually they will dry up and the opportunity will go away.

There are lots of ways to make money investing in real estate. There are various more ways to lose money investing in real estate. There is one strategy you can count on perhaps the most simple of all. Buy At the bottom. When you buy at the bottom the only way is UP!

So look it over look over and jump in. This could truly be a once in a lifetime opportunity to make some great money flipping homes.

Please visit our web site for more information http://www.SmarteRealEstate.com

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Smarte Real Estate is the industry leader in foreclosure auction investing online. We work with investors from large institutional clients such as Fidelity National Title, Prudential, and SCI to small private investors in one off transactions. We can help you find the right properties for the right price. You can click on this link to view some recent acquisitions that are now available for purchase. http://www.SmarteRealEstate.com/treo-properties

You can also visit our blog for the latest news http://www.SmarteRealEstate.com/blog