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Investing in Foreclosures Successfully in a Changing Real Estate Market

When I first got started in real estate investing over a decade ago, foreclosure investing was a very different type of real estate strategy than it is today. I would show up at bank auctions with a pretty clear idea of how much money I was willing to spend on a given property. Then, when that property made it to the block, I would maybe compete with one or two other investors – if that – to get my hands on properties that I believed represented potential profits for me and my business.
However, as time passed those auctions got more and more crowded. Increasing numbers of investors started attending auctions, and the auctions were no longer the “insiders” arena that they used to be. That was when I started using other methods to find foreclosures, such as working with other real estate investors and targeting motivated sellers to get the job done and find properties that I could use to make a profit.
Today, the scene is different once again. As you probably are hearing on the news, even with massive auctions banks and lenders are still holding far more real estate than they are prepared to handle and due to the alleged “credit crisis,” they are having a hard time even finding people solvent enough to buy their properties. As a result, these auctions are still often full of interested investors in all stages of their involvement in “the game,” but few are really equipped to fully take advantage of the opportunities that this type of situation represents.
In my experience, changing markets are the best time to get involved in real estate. When a market is predictable, people everywhere figure out how to work the system and generate profits. However, in the newly dynamic real estate investing market of today, there is no permanent “system” that will make you money. Instead, you need a vast array of information at your disposal. For example, I have worked with investors who never pay more than 25,000 Dollars for a house, but buy a minimum of 8 houses at a time. They are able to work with lenders in a way that single-property buyers cannot because they have the ability to take a lot of foreclosed properties off that lender’s hands, and they often sell those houses at a 200 to 500 percent profit by the time they are done with the deal.
Strategies like this one may not work forever, but today that particular partnership is literally generating millions of dollars for all the people involved. Of course, this type of creative thinking requires some pretty serious methodology as well. You need to know what type of lender and what types of properties to target. For example, that particular group has identified the exact characteristics a house needs to sell in today’s market and can spot those characteristics no matter where that property is located or what condition it is in. They swoop in on these properties (which are often really undesirable at first glance) and make offers that the lender really cannot afford to refuse.
The key to success in foreclosure investing in this changing market is making your strategies work no matter what the state of the economy. My experience in real estate investing has never been more beneficial to me personally than today, when a repertoire of experience and education is the only thing that enables me to be flexible enough to keep up with foreclosure investing no matter the state of the economy or the mindset of the times.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit www.CoachingByPeter.com.

How to get double interest on your savings account

If you are the kind who leaves a lot of money idle in your savings accounts, this news is going to make you happier and richer!

The Reserve Bank of India (RBI), in Tuesday’s monetary policy, made the regular repo and reverse repo rate cut announcements. These cuts are expected to bring down lending rates soon.

However, another key announcement that it made was the change in method of calculation of interest on your savings account. This change is effective from April 1, 2010.

Currently, banks calculate interest on your savings account as follows:

3.5 per cent per annum or 0.29 per cent per month on the minimum balance in your savings account between the 10th of the month and the end of the month.

What is a little unfair here is that interest is paid on the minimum balance in your account between the 10th of the month and the end of the month. But how many of us are left with large bank balances at the end of the month anyway!

While the rate of interest has been maintained at 3.5 per cent per annum, the good news is, that from next year, interest will be calculated as follows:

3.5 per cent per annum or 0.0095 per cent per day on the daily balance in your savings account.

If you can’t make sense of these numbers, allow us to explain.

Suppose your bank statement in April reads like this:

Date
Deposit (Rs)
Withdrawal (Rs) Balance (Rs) 1 April
    5,000 2 April
30,000   35,000 3 April
  4,000 31,000 5 April
  4,000 27,000 10 April
  12,000 15,000 13 April
2,700   17,700 18 April
  4,500 13,200 25 April
  5,500 7,700 30 April
    7,700

Now:

Under the current method, you would get an interest of Rs 22.46 for April, that is 0.29 per cent on Rs 7,700 (the minimum balance in your account between the 10th and the 30th of April).

Next year:

Your interest would be a handsome Rs 48.82 for April. That is, 0.0095 per cent everyday on your balance of that day.

Easily, your idle money is going to make you far richer!

That doesn’t, however, give you an excuse to leave your money lying idle in the savings account.

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How Much Information to Give-a-way in your Information Products

I’m often asked how much info you should give away in a free Special Report and other information products. The fear is that if you give-a-way too much people won’t buy more from you. In this article, I give you a simple way that shows you exactly what to give-a-way and what to hold back on so you still give great value AND attract people to buy more from you…

In general, I believe you should give-a-way a lot…enough for your prospect to say, “My gosh! If the FREE information product is this good then the paid stuff must be amazing!” The issue isn’t how much info you give-a-way…your #1 goal is to be perceived as always providing over-the-top value. People want to buy from generous people…in fact they feel obliged to!

* The Law of Reciprocity *

This is one of the most powerful tools in persuasion. The Law of Reciprocity states: we should try to repay, in kind, what another person has provided us. If you get a birthday gift from someone we feel obliged to give them an even better gift on their birthday. If not…our fear is being seen as a moocher – a taker.

This isn’t a bad thing. In fact, renowned anthropologist, Richard Leakey says the essence of what makes us human is reciprocity: “We are human because our ancestors learned to share their food and their skills in an honored network of obligation.”

So when you give away a ton of great value in your information products you actually set in motion a subtle psychological reaction within your audience. Deep down, they will feel obliged to give back to you…i.e. buy your product or hire you.

* The Pyramid Analogy *

Here’s an easy way to think about how much info to give-a-way in your information products…

You know how a pyramid is very dense? It’s heavy! The volume of a pyramid is made with layer on top of layer of dense stones. Well imagine all the knowledge and experience in your head is like the volume of a pyramid. Pretend that 100% of the volume of the pyramid represents 100% of your knowledge and experience.

Now imagine a big, powerful saw blade cutting the very top of the pyramid. That topstone would be, say, 5% of the total volume of the pyramid. That uppermost stone rests on the entire pyramid below it…but it’s only a fraction to the total volume.

In the same way, your free give-a-way information products, like a Special Report, should only give away 5% of your total knowledge. You can give an overview of everything you know…but it’s general information.

To see a good example of this check out my Special Report “3 Secret Steps to Creating Information Products That Makes You Money.” (www.infoproductguy.com) I give away my WHOLE program…in general. I give away enough for you to get inspired…but I don’t get into the nitty-gritty details on how to create information products. For that you have to work one-on-one with me. But because I’m very open with my knowledge, people get to know, like and trust me. You can do the same.

Let’s keep going down the pyramid…

Imagine that huge saw blade took off the top few layers of the pyramid…say 50% of the total volume. This represents 50% of all the knowledge in your head. This could be your $200 — $500 signature information product: 5 CDs and a 200 page workbook. Here you not only tell people what to do…but how to do it. You give them your templates and exercises that you’ve developed over years of doing what you do so they don’t have to figure it all out themselves.

This level can also be your group coaching program. It’s a group so it’s cheaper…but it also means people don’t get as much one-on-one time with you.

Are you starting to see how this works?

The further you go down the pyramid, the more knowledge you give away and the higher the price point you charge.

The trick for your free and low priced information products is to tell the people WHAT to do…not HOW to do it. For them to learn how to solve their problems in more detail you have to share more specific information…you have to even roll up your sleeves and teach them the “How To” one-on-one. That requires more of your knowledge and time…so you charge more.

Bottom line…I encourage you to give more rather than less. People will forget the information…but they’ll remember that you are someone who gives great value. And THAT’S what makes you successful.