Article #2 from Foreclosure Articles
by David Whisnant Editor, Real Estate Investor, and Attorney

Foreclosure:

Thinking Outside Of The Box And Buying More Foreclosures


a comparable area to where the foreclosure was.

It was a duplex unit, and the total monthly payment was around $900 a month with expenses for the entire building. Instead of offering him increasing amounts of money to win his business that day, I offered him a foreclosure solution.

Not only would I give him some money for his equity, stop the foreclosure and save his credit, but I offered to let him move into my duplex rent-free. He wouldn’t have to worry about living expenses for an entire year. It would allow him to save some money, get his other bills paid off in full, and even create a nice cushion of cash after that year. That piece of mind that I provided was worth far more to him than the money it cost me.

What if you have no duplex to offer a foreclosure seller? No biggie. Don’t you think you could sign an apartment lease and pay the rent for a year? Isn’t that more powerful than just offering more money like your linear thinking foreclosure competition?

Since I love the foreclosure business, I am always coming up with new ideas. By the time you read this, I probably will have tested this out, but here is something that I am just dying to try out.

You are probably familiar with the Lexus LS 400 sedan. It’s been around since 1990, and prices for the early models are pretty cheap. Decent examples can be had for $7,000 or so.

I am going to purchase a one owner 1990-1991 model that is cosmetically in good shape, put sheepskin covers over the front leather seats, and have it fully detailed. I will then drive it to my foreclosure seller’s home. In the contract, the foreclosure seller will receive my Lexus LS 400 for free at closing.

I KNOW that this is really going to close tons of foreclosures for me this year. Plus, I can have fun driving a different car all of the time.

If they don’t want the car, they can substitute cash. But, when they walk out and look at it in their driveway and get excited about the car, they will also get excited about my foreclosure deal. I’m not offering just a business transaction, but the excitement that everyone feels when they get a new/different car. My foreclosure competitors are not even competing against me, because none of them are offering anything other than money. The seller probably will feel that the car is worth far more than it cost me, so for someone to beat me out they would need to offer a significantly higher price.

Buying foreclosures is the most competitive area in real estate investing. You had better be doing something different if you want your share, or more, of the great profits that can be made in foreclosures. In my course on foreclosures, I share many more ways to get sellers to say yes that will cost you far less than bidding against other foreclosure investors. Your foreclosure sellers will love you, and you will make your competition green with envy.

Foreclosure |  Page 2

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