As real estate entrepreneurs, our focus is to buy properties that generate profits. If we can’t make a profit, we can’t survive as entrepreneurs. That means we have to learn how to find great deals. Even better, we must constantly find them. Foreclosures can consistently offer great deals in a buyer’s market, as long as you know how to find them.
It is important to understand that banks are not in the real estate business. They are in the lending business. They lend money to earn interest income, much like a landlord does with tenants. The banks will end the guarantees. They want to make sure that if they lend money, and for whatever reason, the borrower doesn’t pay as agreed on the loan, the bank can get their money back through collateral.
When a bank forecloses on a property, their goal is to get rid of the asset as soon as possible because they want to avoid as much maintenance costs as possible. More importantly, they do not have a business model to rent the asset to support costs or rehabilitate the asset for profit.
And that’s where real estate entrepreneurs come in. There is a proven business model available that can be automated for anyone willing to do the work to earn a hefty income. But keep in mind: This isn’t about searching for perfect homes that have lots of buyers lined up. Too many hobbyists jump at that point and get average deals. To find amazing deals, it’s important to be prepared to look beyond appearances to what really matters. And what really matters are the numbers.
Do you think a borrower who is being forced out of their home will leave the property clean and ready for resale? If you don’t believe it, you’re right. Do you think a bank has the money to take, renovate, clean and bring the property to marketable condition? Absolutely not. And all of this adds up perfectly to the same profit for the motivated real estate investor.
Investing in foreclosures can be a daunting task if you don’t know what you’re doing. It’s crucial to implement a proven step-by-step system that can work consistently every time from the moment we find a deal to the moment we sell 30 years later. Fortunately, there is a program designed specifically for Canadian investors.
You may not be sure about jumping into this new market. Maybe you are worried that everything will go wrong or that you will not be able to do it. Success is a journey that we all must be willing to undertake if we want to achieve results. Every journey always begins with a first step.