Home : Huge Profits Loom in the Coming Foreclosure Market

Huge Profits Loom in the Coming Foreclosure Market

Posted by Jay D. Gottlieb on 3/14/2007 at 6:38 AM
Posted in Real Estate

Make no mistake about it. All the best indicators are telling us that the coming months will see a dramatic increase in property foreclosures in the United States.

Just two days ago on March 13, an Associated Press article reported that late mortgage payments and foreclosures had reached a 3 ½ year high. The alarming news even made the front page of the New York Times on March 11, when “Crisis Looms in Mortgages,” an article by Gretchen Morgenson, described some startling realities. Not only are more property owners losing their homes to foreclosures, now some mortgage-lending institutions themselves are beginning to close their doors. They were lenders that were writing sub-prime mortgages to customers who really could not manage their loans - often buyers who were already carrying excessive credit card debt.

It looks as though things will get worse before they improve, which will be a very bad thing for people who cannot carry their mortgages. But it will also be an advantageous time for real estate investors to acquire foreclosed properties.

Buying foreclosures and profiting from them is challenging. If you're new to real estate investing, you need to know what you're facing. Although the profits from foreclosure investing can be huge, there is an awful lot to know in order to avoid the problems that can occur. You need the skills to:

Identify properties with high-profit potential.
Buy at the lowest price.
Strategically finance your investments.
Work the numbers on your deals to be certain that big profits lie ahead when market conditions change.

Remember, too, that buying foreclosed properties does not mean taking advantage of unfortunate people who are unable to hold onto their homes. There are many ways to structure deals and make huge profits. I’d urge you to take a close look at the Real Estate Foreclosure Coaching Program that I have created for Trump University. Opportunities like these don’t come along every day. Act decisively, and you can make significant profits in the months ahead.

Trump University Professor Jay D. Gottlieb is one of Donald J. Trump’s hand-picked real estate experts. In 1994, he co-founded First Home Brokerage, a real estate investment company that acquired, renovated, and sold distressed single and multi-family homes to predominantly first-time home buyers. The company quickly grew to be one of the largest re-developers of affordable 1-4 family homes in the nation, with sales of approximately $100 million annually and with over 3000 homes bought and sold. Currently, Mr. Gottlieb is president and CEO of Tri-State Home Sales LTD, a real estate company that specializes in the purchase, renovation, and sale of residential properties throughout the United States.

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8 Comments

Posted by lightwayvez on 03/15/2007 9:08 AM

While these foreclosures are not a welcomed concept to those who will loose their property, I can remember back in the day, newly married, a bank had described our potential to purchase a home, my then husband jumped on the band wagon filled out the forms and began to dance his way to work each morning.

This whole event brought me little to no comfort since when I crunched the numbers they didn't match. Within days I sat down in the bank's office and with great authority asked this expert to point out where it was we were to actually own this home. To me the home would own us.

I walked away from the bank without a home, however I know I did us all a huge favor that day, because I don't think we would have had dinner on the table for the kids all these years if I hadn't.

Shortly after that we were divorced. I could have been quiet and modest and captured the home in our divorce papers, leaving child maintenance to auto debit the loan but instead I was honest and realistic.

I don't know that my former husband would have had the style Mr Trump had to admire his former wife, however to this day I firmly believe I avoided contributing to what could have been a very messy bank statement for either one of us. Certainly had I not avoided this mistake my former husband could not have remarried as often as he did...

The banks need to stand by their community of families and not just that of the corporate zoo. It looks like this may just happen in the future. Canada has been the leading example when it comes to credit cards, I don't see why we can't be on top of the lending tree as well.

Cheers !

Posted by Harry T. on 03/15/2007 9:53 AM

Excellent article and heads-up to people regarding the current foreclosure concerns. However, for some people, the rule of "caveat emptor (buyer beware)" needs to be considered. I was working with someone one day who was getting ready to foreclose on some tax liens in Jersey and when I asked him what was going to happen to the family that he was throwing out, he asked "What do you mean?". The guy was was so caught up in making a killing in the deal that he forgot that there were actually people living in the house. Of course, he went into a panic, had a morals / ethics brain freeze (can't kick them out but want to foreclose kind of thing - what Mr. Trump refers to as getting caught up in equivocation) when I reminded him that there was money to be made in working out a deal with the family that didn't leave them homeless either.

So for those who are exploring opportunities in this space, go for it. But Mr. Gottlieb raises an excellent point - don't take advantage of the unfortunate and if you have a heart at all, realize that sometimes you will have some challenging questions to answer if you cannot come up with a true win/win and foreclosure is your only option. Be open to creative solutions that work for everyone and be prepared for what could be required of you if creativity doesn't deliver a solution.

Great article, Mr. Gottlieb.

Best regards,

Harry

Posted by user89187 on 03/15/2007 5:10 PM

Where's the Banker? I think the bankers should step up to the plate and help these people manage their money better. The Banker should assist these people in amalgamating their debt load so they can keep their houses and the economy can bloom.

Quit spending people. Pay your house off, sell the car for summer anyway and car pool with the kids and stuff!

Don't let this hot shot steal your house!!!!!!!!!!!!!!!!!!!!!!!

Posted by Real Cashflow on 03/20/2007 10:20 PM

Posted by user89187 on 03/15/2007 5:10 PM
Where's the Banker? I think the bankers should step up to the plate and help these people manage their money better. The Banker should assist these people in amalgamating their debt load so they can keep their houses and the economy can bloom.

Quit spending people. Pay your house off, sell the car for summer anyway and car pool with the kids and stuff!

Don't let this hot shot steal your house!!!!!!!!!!!!!!!!!!!!!!!

I'm sorry, I just don't get what you said. Why should a banker step up to the plate, as you say, to help people manage their money? These people should know or educate themselves before they get themselves into anything. People should learn to be responsable for their actions, their lives and their money.

Posted by member1399493 on 03/22/2007 11:08 PM

Aloha to all , i think it goes down like this back in the early 90s the banks took a beating the goverment tightend the lending requirments and no one had much cash so you would see houses between 5k to 65k at the auction block the host was FDIC and RTC all well and good the problem was that 7 out 9 people decleared bankrupcy a year before and would have bad credit for 7 years so they were out of the pitchure the only way was to have a stedy job with 2 years w2s and to have a flawless credit report but in 1997 to 2005 the banks relaxed there lending standards to stimulate the economy and hear we are again in the same mess. the rule of thumb when buying foreclosure and to determine what the property is worth see what the same house is renting for and go to a mortage chart look up the payment and the intrest rate and call the town for the taxes and you have your value worst case you can collect 1st last and security before you close and walk away with a winner . it is kind of hard to do that in hawii for the time being i need to wait 2 more years stick to retirment areas most bang for the buck . mahalo toby

Posted by member1933748 on 03/11/2009 1:48 AM

At some point in our life, we know that we will encounter problems regarding our finances. With our ailing economy, many people found themselves homeless. The foreclosure rates are still on the rise together with the unemployment rate. The Mortgage Bankers Association issued a report showing that the new foreclosure rate has risen to its highest point in nearly three decades, as falling home prices and tighter credit is forcing more and more people out of their homes. That’s why Citigroup is finding ways to help out troubled homeowners who’ve been hit with hard circumstances. Citigroup is offering homeowners who have lost their jobs some temporary loan modifications on their personal loans and home loans, by lowering their payments until they find new employment. This is a welcome move from them, as many people are struggling due to massive amounts of layoffs and credit being tighter than it has been in decades, and also since government stimulus funding has been allocated for just this kind of program. With all the bailout money they have received, it’s about time <a href="http://personalmoneystore.com/moneyblog/2009/03/03/citigroup-pr... did something to help out.

Posted by member1933748 on 03/12/2009 12:19 AM

Posted by member1933748 on 03/13/2009 12:28 AM

At some point in our life, we know that we will encounter problems regarding our finances. With our ailing economy, many people found themselves homeless. The foreclosure rates are still on the rise together with the unemployment rate. The Mortgage Bankers Association issued a report showing that the new foreclosure rate has risen to its highest point in nearly three decades, as falling home prices and tighter credit is forcing more and more people out of their homes. That’s why Citigroup is finding ways to help out troubled homeowners who’ve been hit with hard circumstances. Citigroup is offering homeowners who have lost their jobs some temporary loan modifications on their personal loans and home loans, by lowering their payments until they find new employment. This is a welcome move from them, as many people are struggling due to massive amounts of layoffs and credit being tighter than it has been in decades, and also since government stimulus funding has been allocated for just this kind of program. With all the bailout money they have received, it’s about time CITIGROUP did something to help out. http://personalmoneystore.com/moneyblog/2009/03/03/citigroup-program-...

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