Whether you are a beginner or an “old pro” investor in foreclosure properties, “Quick Cash in Foreclosures” by Chantal Howell Carey and Bill Carey shows how to use unique methods to earn profits from foreclosures. This isn’t the old “buy and hold” approach. The authors recommend sometimes not even taking title to the property.
The book begins with an overview of the real estate foreclosure market, the opportunities, and how to best profit while also helping the distressed property owner. The Careys explain the four foreclosure purchase situations and when each should be used or ignored.
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“Another name for the quick-cash strategy is flipping. Flipping is the fastest way to make money in real estate. When you flip a property, you get in and out of a property in a short period of time,” the authors explain. Then they emphasize their “top 10 advantages of the quick-cash strategy.”
These 10 advantages include no repair and maintenance costs, no monthly mortgage payments, no landlording, no property taxes, no hazard insurance, and quick cash. However, they then explain sometimes it pays to minimally fix up a property before profitably reselling it, thus requiring a holding period of several months.
The book is filled with lots of personal examples from the foreclosure experiences of the authors. They even include several examples of mistakes to avoid, based on their errors.
Throughout the book, the authors explain that investors in foreclosure properties are really acquiring the owner’s equity (difference between market value and total amount owed against the property). When there is little or no equity, details of purchasing at a “short sale” below the mortgage amount owed, with the lender’s cooperation, are explained in detail.
Heavy emphasis is placed on finding foreclosures before they become public knowledge. The authors discourage buying at the lender’s foreclosure auction, primarily due to the competition from other bidders. But they caution such purchases are sometimes advisable when the property is over-encumbered with too much total debt.
Details of foreclosure auction purchase strategies are shown. But the Careys do not favor this acquisition method. Their reasons include cash requirements (they prefer to acquire foreclosures with little or no cash), taking title is usually required, and potential unexpected problems.
The authors favor negotiating foreclosure purchases direct with the defaulting owner before the property goes to foreclosure auction. They show how to meet with the owner and explain their eight alternatives, including doing nothing and losing their equity. The many personal examples from the foreclosure experiences of the authors spice up the explanations.
Chapter topics include “Quick Cash in Foreclosures”; “What is a Foreclosure?” “Why Buy Foreclosures?” “How to Buy Foreclosures”; “When to Buy Foreclosures”; “How to Find Foreclosures”; “Negotiating with the Owner”; “Buying the Equity”; “Negotiating with the Lender Pre-Foreclosure”; “FHA and VA Foreclosures”; “Fannie Mae, Freddie Mac and FDIC Foreclosures”; “IRS Foreclosures”; “Buying on the Courthouse Steps”; “Flipping Foreclosures”; “Assigning Foreclosures”; “Optioning Foreclosures”; and “Buying from the Lender.”
This ultra-complete foreclosure book is the best of the many foreclosure books. Every serious foreclosure investor should study it, especially the techniques for assigning foreclosure purchase contracts rather than taking title.
The book’s format is easy to understand, yet the authors provide lots of essential details without being boring. On my scale of one to 10, this outstanding new book rates an off-the-chart 12.
“Quick Cash in Foreclosures,” by Chantal Howell Carey and Bill Carey (John Wiley and Sons, Hoboken, N.J.), 2004, $19.95, 221 pages; Available in stock or by special order at local bookstores, public libraries and www.amazon.com.
(For more information on Bob Bruss publications, visit his
Real Estate Center).
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