|
|
|
A Guide To Investing
Everyone seems to have their own secret or strategy or trick to making money in the stock market. Here are two strategies that have helped many people.
1. It's your time, how do you want to spend it?
Some people suggest high risk investments...
Creative Real Estate Investing Techniques
With a job that paid $3.40 an hour, I saved $5,000. I used $3,500 of it to buy my first piece of real estate - 2 acres near where I lived. As you can guess, this was many years ago. A few hours removing brush, and it was ready to sell. I...
Here Come The Real Estate Gurus - Hide The Children
I am stunned when I hear that many of the so called real estate gurus are charging from $3,000 to $15,000 for their seminars and "mentoring". Has the world gone mad?
As a real estate investor and author I am often asked if I can recommend these...
Juggling The Day With A Deal
Doing deals with sellers is why you went into lease purchasing. Again, using organization and time management is very important here.
We find the biggest problem beginners have is that they spend too much time going out to look at property....
The Basics of Real Estate Investing
The Basics of Real Estate Investing By: David Neese Real estate
investing may not be everyone's cup of tea, but some people who
have already tried investing in real estate know that it can be
highly profitable and lead to much better quality of...
|
|
| |
|
|
|
|
|
|
The Durrett Rule Bites Foreclosure Investors
Folks learn that you know something about real estate investing and they eagerly ask you about buying foreclosure property.
The general assumption is that they can buy a beautiful home at a deep discount at a foreclosure auction.
Their smiles fade when you explain that they will have to pay cash on the spot and they must be able to research title to be sure they aren't buying trouble.
But wait... there's more... There is also a little something called the "Durrett Rule".
Oh boy... can that be a like a knife in the back. For example: You spend the time and effort scouting out a nice home scheduled for foreclosure auction. You search title and scare up the cash to have in your pocket when you go to the sale.
Hurray... You have the winning bid at the foreclosure sale and buy the home at about a 40% discount to market value. After doing your happy dance you spend the next few weeks doing needed fix up. Then you find a renter and settle back to collect rents for the next few years.
But wait! Who's that knocking on the door.
Why it's a nice man who says he is taking the home away from you. Who is this pretentious devil? He is the dreaded... BANKRUPTCY TRUSTEE!
Shortly after the original homeowner lost his house he filed for
Associated Websites
bankruptcy. The wheels of the bankruptcy court grind slowly and the trustee just recently learned that the house had been sold at the auction.
And... The foreclosed upon owner had a nice hunk of equity in the home when he lost it. Uh oh.. get ready for this. It is trustee's job to capture that equity so it can be distributed among the bankrupt home owner's creditors.
Can he do that?
Yes! Under the power granted by The Durrett Rule the trustee can show you the door and claim the home in the name of the bankruptcy court.
You, see the bankruptcy court has more power than Edison Electric. It can do about anything it wants when it comes to assets and creditors.
Oh sure, months later, after a battle in the bankruptcy court, you should be able to recover the money you paid for the home. Of course... no interest is paid on the money for the time it is tied up in court and you will not be able to recover the fix-up costs or attorney fees needed to get your money back.
Buying at foreclosure sales is not for sissies! Stick to an easy money tactic... buy in the preforeclosure period.
About The Author
Mark Walters is an investor and author. You can find his
published material at http://www.CashFlowInstitute.com
http://cfiblog.blogspot.com/
|
|
|
|
|
|