One of the easiest ways to make money in real estate is to invest in bank foreclosures. Real estate investing has many different angles. But bank foreclosures are by far one of the simplest and can be one of the most lucrative ways to make money.
You don’t have to negotiate with a homeowner. You don’t have to attend an auction. You simply call up a bank’s REO department, which is the department responsible for managing homes that have been repossessed by the bank, and making an offer. Some banks will reject your offer. Some banks may come back with a counter offer. And some banks will accept your offer. It’s all a numbers game.
If you knew that for every 100 rejected offers you made, you would get 1 offer accepted? Would you be willing to make those 100 offers? Especially knowing the profit potential on typically bank foreclosures? Real estate investing is all about playing the numbers game.
If you understand the numbers and how they work, you can be extremely successful at what you do.
And don’t worry about getting approved for financing bank foreclosures. Real estate investing is still a thriving business, despite the downturn in the economy. In fact, real estate investing is on the rise now, as of this writing, despite the crash of the housing market.
The key is to find an undervalued home, rehab it, and flip it. If you can flip the house for well below its market value while still making a healthy profit margin, you should be able to resell the house relatively quickly.