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Home prices are rising and it is very much an inventory-strapped market. Unfortunately, for those agents and investors using the MLS (multiple listing service), this increase in demand is causing bidding wars on available homes. Fortunately for Foreclosures.com clients, our expertise will guide you through this daunting market, so you can find and close a hidden wholesale foreclosure deal, building in a nice profit for yourself every time…

In a recent NY Times article, Sacramento, CA is highlighted as one of the numerous cities that just can’t keep up with the rising demand for homes. Buyers are willing and able to pay the rising prices for homes, and the limited inventory has thrown buyers into a feeding frenzy. Low prices and low inventory have created a booming housing market that we have not seen since 2005. This is happening everywhere, not just Sacramento. I know, I hear it every day from my clients.

But not everyone is overpaying for property. Smart investors are avoiding getting sucked into the wrong deals, and finding the right deals, even in this competitive market. Are you wondering HOW???

How Do You Find and Close the Motivated Sellers??

This a question I get asked often. First, we can’t rely on searching “available homes for sale” on the MLS, bank websites or any free site offering homes for sale for that matter. That is where your competition is going and overpaying for houses. Smart investors lock in their profit when they buy below market. You can’t do that if your price is being pushed up by competitive offers. You need to find exclusive deals that others are missing. That is what the smart investors are doing – working the UNLISTED motivated sellers and structuring a win-win deal for all.

You will want to focus on deals that are NOT listed for sale. Homes in default, where the owner is motivated, but has not opted to sell yet. You will find these hidden homes on Foreclosures.com under Pre-Foreclosure or Auction status. The key is these homes are NOT on the MLS and are great ways to find deals that your competition are missing!

How Do Foreclosures.com Pre-Foreclosure Listings Get You to the Motivated Sellers?

This is where hard work is rewarded! By contacting the owners in default directly and utilizing the skills taught in my upcoming Strategy Session, you will maximize your profits and close the hidden deals.

Some of these homes will have equity (loan balance is less than the market value) and you can strike a deal directly with the owner, where he gets cash in his pockets at closing. This market has been completely untapped for many years now as very few homes have had equity (declining market = less equity).

In my recent blog “PreForeclosure Homes With Equity Up 425%” I spoke about the big increase in homes with equity. This also equates to an increase in new pre-foreclosure and auction leads with equity on Foreclosures.com. This trend is openning up new inventory of possible sellers that we haven’t seen in seven years – to the tune of 850,000 properties the last quarter alone!

Other leads have no equity (loan balance exceeds the value of the home). In these cases you will strike a deal with the owner before he loses his house to foreclosure, but need to get their lenders approval on the deal (short sale). Either way, both pre-foreclosures and auctions NOT on the MLS are great ways to find deals that your competition are missing!

Next, you need to make sure you “do the math right” and build in your profit when you buy the house. If you haven’t read my recent blog on “How Much Should You Pay for that Foreclosure Home” you’ll want to read that now. Finally we flip the deal either to another investor, or we rehab it and sell it to a homebuyer – and put profits in our bank. Then let’s do it again!

Where Do You Go From Here?

I hope you’re as excited by the opportunities to make profits right now as I am! If you are willing to do the work, to find these hidden deals, contact owners in default and help them with a win-win deal (you get a below market deal and they get cash in their pockets and a fresh start) – then you are going to end this year with a BANG!

I will be explaining more about how to find, contact and negotiate your first pre-foreclosure or short sale deal in my next Live Strategy Session: Wednesday, July 10th, 2013 at 6pm Pacific (9pm Eastern).

In the meantime, keep reading my blogs and keep those comments coming!