What is the Best Way to Profit From Real Estate Right Now?
Perhaps you haven't heard about it but there are around 40 Billion dollars in bad loans from about 30 banks that have been taken over by the FDIC (Federal Deposit Insurance Corporation) over the past year.
There are over 2 Trillion dollars worth of loans still in the pipeline for loan corrections.
What will the FDIC do with all these loans? They will sell them.
This is great news for you and me because you most likely you would like to profit from real estate but you are not so keen to deal with the terrible three- tenants, trash and toilets.
When you buy notes from the FDIC you have the opportunity to be the bank, not the landlord.
Now the $10,000 question is how do I buy notes from the FDIC? Great question! The FDIC was formed during the Great Depression to protect the bank customer's deposits.
When a bank can no longer cover its debt, the FDIC must take over the bank.
Of course, the FDIC does not want to run the bank so it begins to sell the bank's assets and return the deposits to its customers.
At this point, the FDIC can allow a strong bank to purchase the failed bank.
Good banks can buy bad banks.
The FDIC may also hold public sales or create Public Private Partnerships that allow non-bankers like you and me to purchase these notes.
You must have cash to play this game.
There are no loans involved; the FDIC wants to get rid of the loan for cash.
True, you can sign up with an auction site like Debt-X who will just show you where and when to bid for an asset, or you can enlist the services of a private note buying company that will do all the proper due diligence on the assets you are interested in and give you bid guidance so that you can be more successful in your bid.
This is very important when you consider that 40% of all internet bidders end up losing their 10% hard money deposit and fail to complete the purchase of an asset.
A Loan Service Provider can work with you to create several viable exit strategies.
The time to plan your exit strategy is before you bid on a note.
Once you are the successful bidder you will own the note on an asset that you bought for cents on the dollar and you will have several choices of how to profit; you can settle with the current borrower on the loan, take a deed in lieu of foreclosure, foreclose and take possession of the property or flip the deed to another interested party.
Any way you choose to proceed you can make a tidy profit.
There are over 2 Trillion dollars worth of loans still in the pipeline for loan corrections.
What will the FDIC do with all these loans? They will sell them.
This is great news for you and me because you most likely you would like to profit from real estate but you are not so keen to deal with the terrible three- tenants, trash and toilets.
When you buy notes from the FDIC you have the opportunity to be the bank, not the landlord.
Now the $10,000 question is how do I buy notes from the FDIC? Great question! The FDIC was formed during the Great Depression to protect the bank customer's deposits.
When a bank can no longer cover its debt, the FDIC must take over the bank.
Of course, the FDIC does not want to run the bank so it begins to sell the bank's assets and return the deposits to its customers.
At this point, the FDIC can allow a strong bank to purchase the failed bank.
Good banks can buy bad banks.
The FDIC may also hold public sales or create Public Private Partnerships that allow non-bankers like you and me to purchase these notes.
You must have cash to play this game.
There are no loans involved; the FDIC wants to get rid of the loan for cash.
True, you can sign up with an auction site like Debt-X who will just show you where and when to bid for an asset, or you can enlist the services of a private note buying company that will do all the proper due diligence on the assets you are interested in and give you bid guidance so that you can be more successful in your bid.
This is very important when you consider that 40% of all internet bidders end up losing their 10% hard money deposit and fail to complete the purchase of an asset.
A Loan Service Provider can work with you to create several viable exit strategies.
The time to plan your exit strategy is before you bid on a note.
Once you are the successful bidder you will own the note on an asset that you bought for cents on the dollar and you will have several choices of how to profit; you can settle with the current borrower on the loan, take a deed in lieu of foreclosure, foreclose and take possession of the property or flip the deed to another interested party.
Any way you choose to proceed you can make a tidy profit.
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