An Overlooked Way of Finding Real Estate Notes

Most real estate investors overlook this little used method of gaining real estate leads. I’m talking about telemarketing! Finding real estate notes at a great price can be done this way.If you can manage to get a note seller interested on the phone itself,and if he even sends you the copy of documents then you can consider almost 2/3 of those that are interested. Most real estate investors avoid telemarketing for fear of knowing what to say to a real estate note holder over the phone.The truth is that telemarketing in real estate investing is just like telemarketing in any other type of business, as in it is a numbers game. So the more real estate note leads you call, the more likely you are to find someone who wants to cash out their real estate notes. Follow these four steps when making contacts on your purchased list of real estate note holders:Create personal credibility with each real estate note holder. You have to do that the minute they get on the phone and the best way to do that is to be like everyone else. You have to find common ground with the person, whether it’s in the way you say hello, or the way you talk about local areas. When an individual shows a liking to you, you may get a good deal on the real estate notes you want to find.Studies have shown that people can tell whether you have a positive or negative attitude by the way that you come across on the telephone. So keep the phone atmosphere warm and friendly.To begin, you send people information about how they can make money on their real estate notes. This kind of information is free for the asking if they have any interest.Approach them as if you are only there to do a study of the market of note holders.When you want to know about real estate notes through telemarketing, you will have to tell as to what you can do for the note holder. If you have been attentive and have understood then you can confidently go and close the deal. You just need to take an interest about why he needs some cash.The most important part of finding real estate notes over the phone is not getting the prospect to sign a contract at this point, but to go look for the original note and mortgage and agree to either fax you a copy, see you, or mail you a copy.Usually when note buyers can get a seller to locate the original contract, then they are more likely to close on the deal. Any person who is interested enough to look for a real estate note will be more interested than you think in selling that real estate note.

Residential Real Estate Investing

This is the flip side of homeowners that have found themselves unable to pay for their mortgages payments during the recession. Many individuals with the knowledge, and resources have been able to capitalize on the situation in the form of residential real estate investing. Real estate has long been one of the best vehicles to wealth for many individuals in history. More millionaires have been created in the United States through the investment of real estate than in any other industry.Since the beginning of the recession in 2007 real estate investors have seized on the opportunity in residential real estate investing throughout the US at discounts prices up to 50% off the properties markets value. How are these prices created you might ask. When the recession started many employers reduced their work forces in large numbers this created a domino effect in the market place. After several months of unemployment many homeowners began to stop making monthly mortgage payments on their homes. Banks and mortgage companies suddenly found themselves with massive amounts of delinquent mortgage payments on their hands more than they could handle all at the same time. In an effort to resolve this problem these mortgages companies and banks started issuing homeowners notices of default in an attempt to get the homeowners to begin paying on their loans again.This effort was not successful, and on top of that some mortgages that were originated several years prior to the recession had adjustments in interest rate built- in to the mortgage that automatically were scheduled to increase the monthly mortgage payment on homeowners for some $1,000, or more per month which added more troubled mortgage payments as homeowners were not able to pay the increased payments on their houses. This nearly brought the US financial system to a complete standstill which had not happen since the Great Depression of the 1930’s. So, with banks and mortgages following through with their normal practices of foreclosing on delinquent homeowners this created a large supply of homes at a bad time for the real estate market as a whole.Real estate values that had increased from 2003-2007 took a large drop in value almost overnight with an unsteady housing market new homeowners were unwilling to take the chance in getting caught up in the devalue real estate market. This is where residential real estate investing opportunities presented itself. Many of these individuals had been buying, and repairs homes through the boom period of 2003-2007 and had made a lot of profit in the process.So, they were fresh with cash ready to take advantage of this declining market. Banks had to sell this oversupply of properties as the US government bank regulators requires them to get these defaulted loans off of their books. As the only real buyer in the market banks began one by one selling off inventory at large discounted prices to residential real estate investors. These investors in turn made repairs to the homes, and as months went by some potential homeowners started hearing that there were lower prices available in the market place so they decided that they would take a chance at home ownership. The residential real estate investors started selling their properties that they had purchased from the banks at discounts up to 50% to these new homeowners. The new homeowners were happy as they were able to buy homes that were far less than they were able to buy that same home just a year before, and now they were getting new upgraded amenities that the real estate investor had thrown in such as new stain less steel appliances, upgraded cabinetry, freshly painted property through the home, and new flooring that was used to entice the homeowner to purchase.The residential real estate investing segment of investors continued to put more in more money into the market to purchase more discounted properties from the banks. They were making money hand over fist some properties were sold to profits of up to $200,000 to $300,000 per unit depending on where the house was in the country. This was good for business for these residential real estate investors. This trend continues to this very day, but the banks who found out how much these investors were making have made changes to their ways of selling the properties. Big profits are still available, but just not quite as big as the beginning days in 2008 through 2010. When the word got out how much money was being generated in the resell residential real estate market for distressed real estate properties new investors joined the group many of whom had never been in the real estate business prior to the recession. If you have ever thought about making money outside of your current employment there are still opportunities to make money in this avenue sometimes without the need for any of your own money or credit.The opportunity of the large money may not be there anymore, but what is wrong with making an extra $20,000 to $50,000 off of the sale of one property. Two or three property sells per year can put an extra $60,000 to $150,000 in your pocket up and above your current income without you having to leave your current job. This makes the residential real estate investing market alive, and well in 2013.