Real Estate Investment Management Software

Come all ye realtors.

Most realtors and real estate agents only know the "retail side of the business". They don't really understand the foreclosure process and the nuances of making a profit in foreclosures.

This is because foreclosures are typically pursued by investors, as principals, looking to make a profit by picking up foreclosure equity. Realtors work for commissions. They usually don't realize there is potential for both commissions and equity as an agent/broker working this wholesale side of the business.

There are several methods for an agent to play on the wholesale side of the business:

1. Find the foreclosure properties with equity still left in them, and try to get a listing to help save that equity for the homeowner, before it is too late.

2. Find the foreclosure properties with equity still left in them, and help that homeowner obtain new financing (even a hard money second, or third loan) to cure the current default.

• Providing a hard money second can be an opportunity to eventually obtain ownership of the property, if the homeowner defaults on the terms of your hard money loan.

3. Find the foreclosure properties with significant equity still left in them, and lead your investor clients to those deals for their consideration.

• Then help them evaluate the property (market value, condition, etc.). Then get a listing to help them resell it if they are successful in purchasing it.

4. Find the foreclosure properties with equity still left in them, and purchase the property yourself (as a principal, not as an agent).

5. Contact the beneficiaries (lenders) and try to get an REO listing on the properties they have already foreclosed on. Follow the trail of foreclosures through the REO notice stage.

• Then contact the beneficiary offering your services (as a "foreclosure expert") to list and resell the property at full market value.

6. Find the foreclosure properties with equity still left in them, and buy the note on the loan that is in foreclosure, at a discount.

• Then proceed with the foreclosure process yourself.

7. Find the foreclosure properties with equity still left in them and a junior loan(s). Then contact the junior lien holder and buy the junior loan at a discount (advising the junior lien holder that they will likely be wiped out if the senior loan goes through the Trustee's Sale).

• Then step up and cure the senior default, and proceed with a foreclosure action yourself on the junior lien (assuming it too was in default). Either you'll get the property yourself in foreclosure, or you'll get bid up and paid the full balance owed on the junior lien, thereby realizing a significant profit.

There are many ways for Realtors (agents or brokers) to play on the wholesale side of the real estate fence. However, whichever approach you decide to pursue, the key is still knowing which properties have potential equity still left in them. Shark Bait will help you find that equity and follow the entire foreclosure process, analyzing each deal, every step of the way.

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