Is it the Bottom of the Real estate Market in Los Angeles?

Foreclosure Investing The secrets to success in 2009! Welcome to the new world! Wow! If you are anything like me your head is still spinning

. In 2007 I was on top of the world. My real estate business was on fire. Investing, selling, buying I had it all. Opps! When things changed they changed REAL FAST. Denial, denial, and more denial. Its kind of like location, location, location except it hurts a lot more. I guess you know the end of this chapter. Me and a few million people got our butts kicked big time. Well, now that Ive got that out of my system its time to get back on the horse. What to do now? If you take the time to really analyze the market there is one word that holds the key both on the way down and on the way back up. Drum roll please..FORECLOSURE! The ultimate two edged sword. The first edge of the foreclosure sword As the market began to unravel foreclosures pushed the sale prices down to 1999 or even earlier prices. This in turn led to a domino effect of catastrophic economic collapse. This also gave us the most profound view of the new global economy in action. As the U.S. goes, so goes the world. The second edge of the foreclosure sword A tsunami of foreclosure properties has created the largest wealth building opportunity of our lifetime! Mark my words. More millionaires will be created in the next three years than ever before! Now it gets exciting. This is The United States of America. Anyone can share in the money. You just have to go for it! Ok. Now I outline the very complicated formula. This is the part where the real estate gurus sell you there $5,000 courses. Dynamic offerings with videos, ebooks, cds, one on one coaching, and even audio recordings while you sleep! Heres my pitch. I have spent millions of hours researching this. Even though this is free Im going to give you TWO formulas. Formula 1. Buy low sell high. Formula 2. Buy low rent high. Not to exciting is it? Not to complicated is it? How often do you think these formulas work? I tell you the answer to that one. EVERYTIME. The key is exactly the same for both formulas buy low. When you buy low or buy right making money is a lot easier. How to find the Holy Grail (Foreclosures) Remember I said anyone can do this? Lets start with the little guy. First let me get this out of the way. The best way to start is to start with some money. I will not give any advice on no down payment real estate investing. If you dont have any money, than go out and get some. Save it or borrow it but start with some money. You dont need a lot. With FHA financing you can purchase with as little as 3.5% of the purchase price. You can find foreclosure properties for as little as $20,000 or less. Using my massive computing skill, that works out to a $700 down payment. The bank will give you the rest! Do research in your area for foreclosure properties. Now your job is to find the best real estate agents that handle the most Foreclosure properties. Its easy, just look for the names that pop up the most in your area. You can use any agent to help you but here is an important insider tip. The bank/seller hires a real estate company/agent to sell the property. This is called listing the property and the majority of the banks foreclosures are handled this way. The real estate company typically earns a commission of 6% which is paid by the bank/seller. The listing agent splits the commission with any real estate agent that brings a buyer in. Now if you work directly with the listing agent than that agent receives the full 6%. In many areas the foreclosure listings are getting multiple offers. The listing agent represents the property for the bank. So if the listing agent is getting the whole commission which offer do you think has the best chance of getting accepted? This is great because you have a leg up and it cost you nothing! Not only that but as you develop relationships with foreclosure agents they will call YOU when they get new listings. Dont underestimate the importance of this. I will give you some examples. I live in Los Angeles. On July 15, 2009 I saw four houses that I knew would work for me as foreclosure investments. I was ready to write offers on all of them. Before I could all of them sold with a minimum of 20 offers on each. I got more aggressive contacted the listing agent on a new listing and got it accepted. I know many agents in this area and they all are telling me similar stories of multiple offers on entry level properties (in Los Angeles thats $200,000 to $400,000). Guess what happens when you get a whole bunch of properties getting multiple offers. You got it. Prices start to go up. Now its time for the big boys. Working the small guy formula works but one at a time takes a lot of work and time. If you have more money, you will want to find a way to do several properties at the same time. No problem! Its the same deal. This time we are going more direct to the bank and buying one of there bulk sale packages or tapes. The bank has the same motivation as you. Selling them retail one at a time takes a lot of time and effort and the properties just keep coming. So the banks put groups of there foreclosure properties together and sell them in bulk. This of course results in even greater discounts. Now this is really for the big boys because you are buying these properties CASH. You can put small group of buyers together and with as little as $100,000 each make this formula work. Generally speaking you will have to show the bank cash assets of $2,000,000 to bid. The minimum purchase amount could be $300,000 or even less. Theres a lot more involved with this formula and I will visit that on my next article. Also coming up in future articles will be discussions on Buy & Flip versus Buy & Hold.

Is it the Bottom of the Real estate Market in Los Angeles?

By: Seth Phillips

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