Inside Information on Buying Foreclosures Like a Pro

“Buying Foreclosed Homes without Going the Auction Route,” a recent article by Kelly Evans and Sara Murray in the Wall Street Journal, is an important one to read if you are thinking about investing in foreclosed properties.

Here’s what I took away from the article:

• Auctions are not the best place to snag bargains today.  Aggressive, experienced buyers frequent them, making competition fierce for any properties that represent good value. Another problem? Some properties are so over-mortgaged that banks are trying to sell them for more money than they are really worth.

• Those factors, however, can make it a good time to look for properties that have not been bought at auction - and which have been put back on the market by the banks that hold them.  Because banks are eager to move those properties quickly, you can see deep price drops.

• As before, pre-foreclosures represent good value, provided you possess the knowledge you need to find them and move quickly.

• According to Lehman Brothers, the number of foreclosures may quadruple in the coming year. That number is so vast, rules will be rewritten fast. So the best current strategy is probably to learn all you can about foreclosures, sit tight, and get ready to take advantage of new opportunities when they arise.

And remember, since laws differ from state to state, a lot of “one-size-fits-all” articles published by magazines and Websites will probably not give you the information you need to buy wisely in your area.

Above all, starting learning and preparing yourself now.  Find one of Trump University’s Fast Track to Foreclosure Investing events in your area.