Setting Up Your Pre-Foreclosure Investment Team
Investing in pre-foreclosures can be a very profitable niche. Unfortunately at this time foreclosures are approaching an all time high. The increase in foreclosures is due to many factors, flexible loan programs, adjustable rate mortgages used incorrectly, job loss, health issues, etc. This situation puts pre-foreclosure investors in a position to make a lot of profit working in this market.
The opportunity exists in this market, however that doesn't mean that it is an easy market to work. To be successful you need to be organized and have a team around you.
Who should be on my team ??
To achieve top level success in the pre-foreclosure market you may want to consider having the following resources or team members available to you:
Bird Dogs
Bird Dogs are a valuable team member because they can do a lot of leg work for you and potentially bring you a lot of deals. To successfully use a bird dog I would educate them on what you are looking for and provide them with any tools you can to help capture those leads.
Realtors
As an investor you always need to have a realtor on your team. In working the pre-foreclosure market realtors can do many things for you. They can bring you potential pre-foreclosure properties to make offers on and they can help you resell the pre-foreclosure property. It may be a good idea as well to have a realtor on staff so that you can capture realtor commissions on those short sales you work that were found by a bird dog.
Mortgage Broker
Mortgage brokers are a very important piece of your team. You need to have a broker so that you are personally ready to take advantage of an opportunity, but you also need them for your potential buyers. Mortgage brokers can also be a great source of leads for you ---- if someone is in trouble with their house, don’t you think they may try to refinance it??
Credit Repair Specialist
Having a Credit Repair Specialist available provides you with something else to offer. If someone is approaching foreclosure more than likely their credit has suffered and they are in need of assistance to repair it so that they can move on with their life and be able to rebuild.
Title Company
Having an investor friendly title company is critical in order to be a successful investor. You need to locate a title company that you can work with and establish that relationship up front. Having this relationship will provide you with a lot of benefits.
Short Sale Expert
Working a short sale is not the easiest thing to do. The package is typically the same, however it takes a lot of work to go back and forth with the bank in order to come to the needed price. It is a good idea to have someone available in your team that has a knack for this and can handle your negotiations.
Other Investors
Often we look at other investors as our competition, however you really should look at them as a resource. Another investor may come across a pre-foreclosure that requires a short sale to make it work and they don’t do these so they pass the lead to you. Other investors are also critical for your success because often they will buy your pre-foreclosures and short sale deals from you. Make them your friend and be sure to network regularly.
As you can see your team is a very important piece of your success. Spend time on cultivating this team and you should see an increase in your success.
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