Читать книгу Foreclosure Investing For Dummies - Ralph R. Roberts - Страница 17

In real estate, cash is king. In foreclosure investing, cash is the grand, high-exalted mystic ruler. Investment capital enables you to step in at any stage of the foreclosure process and buy out anyone who has a claim on or an interest in the property.

When I say cash, I’m not talking about the money you have stuffed in your mattress. I’m talking about borrowing certified funds from a bank or other lending institution or from a private investor. See Chapter 5 for details.

Cash gives you the upper hand with the four Cs:

 Credibility: With cash, you have instant credibility that you can deliver on your promises without hesitation. In most cases, homeowners need cash to escape their current financial crisis. Lenders need cash to cut their losses. With cash on hand, you can give homeowners and lenders what they need to achieve their goals while you take possession of a profitable property.

 Confidence: Cash provides you the confidence to pitch offers to homeowners and lienholders, knowing that you can deliver in a timely manner.

 Creativity: Putting together a foreclosure deal that satisfies all parties often requires a great deal of creativity. With sufficient capital, you liberate your imagination from financial limitations.

 Competitiveness: Multiple real estate investors often compete for the same property. Cash gives you a competitive edge because it enables you to execute a deal much more quickly. Both homeowners and lenders are eager to put the current crisis behind them. An ability to act quickly often separates the successful investor from the wannabes.

The question “Where am I going to get the money?” often derails the novice investor before the train leaves the station, but many of the most successful investors started with only a few bucks in their pockets, including yours truly.

Don’t let a lack of investment capital discourage you. In Chapter 5, I explain how to estimate just how much money you need to get started; then I steer you toward sources of capital that can fuel your foreclosure investments. At first, the cost of investment capital (mostly interest) may chip away at your profits, but as you develop a stronger financial position, the cost of money gradually decreases.