We are living in unprecedented economic times right now in America. As in all extreme conditions, some people are bound to suffer terribly, while others manage to navigate the hardships and perhaps emerge even better than when they started. Our economy—ripe with poverty, unemployment, defaulted mortgages, and foreclosures—is under such conditions; many can do nothing but ride it out, and hope things improve before they are completely devastated. Others, on the other hand, have realized that the down economy creates a buyer’s market—and what’s more, the record number of foreclosures provides incredible opportunities for investors of any level of experience to find great deals.
While there have always been “foreclosure cleanup businesses”—investment firms which deal only in purchasing, repairing, and reselling foreclosed and other distressed properties—the recent record number of foreclosures have caused a significant chunk of the investing population to follow this route toward success. Like all major investments, however, foreclosures require substantial research before-hand, the ability and willingness to say “no” to a bad deal, guidance of an experienced professional, and commitment to see a major project through to completion. It is no easy task, but the opportunities to profit are often unbelievable.
Once an investor decides to try his hand in foreclosure cleanup, the question becomes, “Where do I find these great deals, and how do I beat the hoards of other investors to the punch?”. The short answer is that the deals are everywhere (advertised online, in newspapers, MLS, etc.). But—as you may have already discovered—everyone has equal access to and awareness of these resources, so using them does not provide any real advantage over the field.
As an alternative to the conventional listing sources, consider using the Chamber of Commerce as a source of information and leads. Chambers are generally local, but occur at every level of government and society—town, city, state, regional, national, international, etc. In general, a chamber of commerce is a network of businesses meeting together to preserve and advance the interests of business (and therefore the condition of the market and economy). Often called a board of trade, the chamber voluntarily assumes the responsibility of watching over the often-local economy like a sort of consortium of super heroes.
And, as it turns out, you’re invited! Practically all Chambers—even the U.S. Chamber of Commerce—are membership organizations, which means that for a modest membership fee, any old real estate investor can attend and participate in these meetings, where first news of any market or community updates is broken and discussed. If you want to succeed in a business with so much competition as foreclosure investments, then you need to be on the cutting edge. When it comes to matters of the local economy (including foreclosed homes), the local Chamber of Commerce is the place to be. Sitting as a fly on a wall in these meetings with a notepad or a smart phone could be your ticket to hearing about the best deals before they are publicly listed. For those investors who take advantage, the head-start on these great foreclosure deals will be well worth the couple hundred dollars paid as annual dues for membership in the Chamber (these costs vary dramatically with the particular Chamber). Information is almost never free; but when the information is good enough, you barely even notice the cost!
Tell us what you think by leaving a comment. If you would like to be notified when new posts are made to this site, be sure to subscribe to the RSS feed.
IndianaInvestmentPropertyGroup.com
InvestmentPropertyMadeEasy.com
Based out of Indiana, Jay Redding is a real estate entrepreneur, with experience in single family and multi-family investing.
