As anyone with even a brief familiarity with national news headlines is aware, the number of foreclosures taking place in a daily basis has shattered all previous records.

Of course this is obviously a disadvantage for the homeowners losing their homes, it’s also a devastating situation for lenders who can’t afford to take so many REO properties back into their inventories.

The real estate investors that know how to apply creative techniques will capitalize on both the opportunity to profit  and a chance to help others at the same time.

Here are three ways you can take advantage of the opportunities available in today’s red-hot foreclosure market:

* Foreclosure

The countdown to foreclosure begins when a homeowner has defaulted on their mortgage loan. It is at this stage that the homeowner has truly faced the reality that there’s a very strong likelihood that they could really lose their home.

Certain homeowners may hold out hoping that a miraculous solution could materialize and magically cure their financial problems, but various others are simply looking for a way out that will allow them to retain some of their dignity and their credit rating of course.

One effective method of identifying these lucrative foreclosure opportunities is by scouring foreclosure filings and then contacting homeowners with a solution to their mortgage problems.  You can approach homeowners in person, but a better way is to send a personalized (even handwritten) letter that demonstrates how you can help them and why you are the best person to help them out of their current situation.

You would briefly explain in your letter -how you propose to help them, but the most critical thing your letter MUST do is make a personal connection with the homeowner with a call to action.

Build rapport with them and ask them to contact you TODAY so you can explain all of the options available to them.

You could greatly improve your chances of success with this strategy by following up with a phone call.

Be relaxed,honest, and willing to help. The homeowner will appreciate your integrity and will be much more willing to choose you to help them out, which puts you in a position for a good deal.

* Post-foreclosure

Upon completion of a foreclosure , the homeowner is out of the picture and the lender has an REO (Real Estate Owned) that they desperately need to get off the books, to get rid of quickly.

As a real estate investor, you’re in the unique position of being a solution to the lenders REO problem.

Many lenders are overwhelmed with so many REO properties and many of them are willing to discount them for as little as 40 to 50 cents on the dollar.

Did you know that?

Offers that lenders would have previously rejected with contempt, just a year or two ago are being accepted with gratitude today.  So be prepared, be professional and be ready to get a good deal.  If you’d like free access to a tremendous resource in locating nationwide REOs and other bank-owned properties, go to www.REIconferences.com

*Pre-foreclosure

A number of real estate investors have had tremendoussuccess beating the competition to the punch by buying distressed property prior to showing up on foreclosure lists.

There are several ways to go about doing this.

One of the best  methods is to advertise your willingness to purchase the home of someone who may be facing foreclosure.  The homeowners are the first to know that they’re in serious trouble,before anyone else knows.

The homeowner is well aware that they’re facing an impending divorce, job loss, or payments they can’t afford, they know before they’ve even missed a payment that something needs to be done.

You might consider advertising for pre-foreclosures in the classified section of your newspaper, on bandit signs, or even Craig’sList.  When disadvantaged and desperate homeowners contact you for solutions you can buy subject-to the existing financing, by utilizing partners, or even by doing a short sale on their property.

Your options are limitless really.  All you need to do is listen to the needs of the homeowner and craft a solution that meets their needs and funnels profit into your bank account!

If you’re looking for a steady stream of real estate deals, Foreclosures are a tremendous way to build a portfolio of properties very quickly in today’s market.  The opportunities are ripe and ready . These types of profits can allow you to generate instant equity and residual income that can help you make a generational shift in your family’s financial future.

For free tips, tools, and advice on how to capitalize in today’s real estate market Bookmark the site and return to http://financialenlightenmentclub.com/blog

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