Day 3: How To Pick Deals That You Can Get

Once you have a list of homes going into pre-foreclosure, how do you pick the houses that you can be absolutely sure you can get?

Let me tell you what everybody does - most investors try to find deals with the most equity and get them.

The problem is with that strategy is very simple - what you can see obviously in couple of hours, so can everybody else, so these homeowners are getting 10 letters and postcards every day, with a language which is dumb and threatening most of the time.

After some time, they just stop opening these letters and throwing them in the garbage.

Phone calls - GOOD LUCK! Either they have already disconnected the phone because of all the creditors calling them every day or they have switched to cell phones and don't even answer their home phones anymore. Also if they have a unlisted phone number?

I don't care what equity they have - what equity they don't have, I can create EQUITY out of thin year - it is not something that I can teach in 10 minutes because if you can pull a “Short Sale” off , you are looking at $30,000 - $50,000 of extra profit on just ONE deal . This is such a powerful concept that it takes me almost 4-5 hours during my Real Estate training workshops.

So lets not worry about the what equity these houses may or may not have - Equity is easy to CREATE! Instead focus on the building the list of houses you want to market to.

Also stay focused on the areas that you initially picked (BE LOCAL) and more importantly, look at the amount of default that houses are going under. So big amounts that are over $300,000 - unless you have somebody lined up already that will take these homes off your hand.

The best and easiest homes to sell once you have bought them are in the range of $100,000 to $175,000 - ideal Starter Homes for first time home buyers.

Next: Day 4: Mining County Clerks Office For Gold