Goldie Sommer has been helping her clients short sell their homes for many years.
Buying real estate properties from distressed owners can be very lucrative, but it also comes with a number of complications and special regulations.
While someone’s foreclosure may be an opportunity for you, it is a big problem for the homeowner in distress. Some real estate investors who buy foreclosure properties use strategies that are insensitive, not tactful, disrespectful, and sometimes even outright illegal. While at times you can make a quick profit using such strategies, it is much more effective to conduct business ethically and respectfully. Many real estate investors and agents who build positive reputations while dealing with foreclosures get a lot of new business through referrals and recommendations, which makes life easier for them and their clients in the long run.
The secret to doing business with a party in distress is very simple: treat others the way you would like to be treated in a similar situation. There are several sources of leads you can use to find homeowners in distress. The first one is homeowners who fall behind on their mortgage and apply for a second mortgage hoping to catch up with their delinquent payments. Second mortgages are public records that you can use to obtain leads.
The second source is an ad in which you can promise a fast closing and a cash transaction. You can also partner up with other house buyers and use them as a source of leads. Finally, you can get referrals from bankers, lenders, and your professional network, which can be very large if you spend as much time in the industry as Goldie Sommer did.