If At First You Don't Succeed, Wait

There are many properties on the market you can get for pennies on the dollar. The problem is the lenders want to make their money as well. This can lead to a potential problem when it comes to investing in bankruptcies or foreclosures. The key to success in these cases is to wait. This does not mean you should not make an offer when you find a good deal. It means if the offer you make is rejected, give it time.

The lenders are having problems because there are so many distressed properties hitting the market. They can not afford to have so many loans in default. This actually gives the financial institution a bad reputation and could potentially scare off any investors they would gain. Many times a smart lender will recognize the problem and be willing to deal. Sometimes the lender can play hard ball and try to stick to a fair market value for the property.

One thing which has worked for many investors is to make an offer for the property which is very low. Many times the investor knows the lender will reject the offer. Their secret is knowing the property. Investors will choose a property which has been empty for quite some time. Many times it has sat for a year or more with no electric or heat. This makes many other buyers leery of the potential repairs when the utilities are back on in the property. The interest in the property has diminished. This gives the investor the advantage.

By keeping an eye on the property, the investor will see the price being reduced. The lender does this in hopes of generating more interest. This rarely is the case. The smart investor will again make an offer. This time usually lower than the first one. At times the lender will accept the new offer. The smart investor will have a contingency clause stating if there are major repairs needed when the utilities are on then the deal is null and void. This gives the investor the ability to back out should the plumbing or heating system need a complete overhaul.

Many times there is nothing wrong with the property. It has great potential, but looks in disrepair because there has been no upkeep or maintenance for a year or more. This will also make any other potential buyers to shy away.

There are properties on the market which can be bought for pennies on the dollar when you know what to look for. Choose properties which are vacant. Find the ones which have been on the market for quite some time. Make note of the ones which have had the asking price reduced. Check to make sure there are no other offers which have been made on the property. The lenders will then consider your offer instead of immediately giving a rejection. There are properties on the government repossession list which can be bought for as little as $3,000. In some cases, by investing in bankruptcies, you can get them for even less.

Mark Moebius
CEO
MILJONAIR Development
MiljonairDev.com
636.300.9000

3451 St. Albans Rd. Suite 5B
St. Albans MO 63073