How to Make Money on Foreclosures »

Denise L. Evans received her law degree from the University of Alabama Law School, with a concentration in real estate, tax, and finance. While a law student, she served on the Board of Editors for the Journal of the Legal Profession, published two scholarly articles, was Director of the Legal Research Department, and clerked with a law firm that had a large real estate practice. She graduated at the top of her class, earning the prestigious Henderson M. Somerville Prize. Afterwards, she spent s

A foreclosure purchase is a great way to buy property at below-market price, rent it out to others or fix it up and sell it for a profit. How to Make Money on Foreclosures covers everything from finding properties in foreclosure, to negotiating with sellers in financial distress, to reselling the properties with a healthy profit. Written from a real estate expert's point of view, How to Make Money on Foreclosures gives valuable information regarding investing in real estate, keeping the profit and maybe even quitting your day job.

Introduction
Chapter 1: Choose to Be a Hero
Become a Professional
Help Others
Your First Steps
Meet Jim
Chapter 2: Learn to Talk the Talk
Instant Credibility
Income Stream
Land
Due Diligence
Property Types
Commercial
Flipping
Chapter 3: Buy a Property for Your Personal Residence
Evaluate What You Want
Screen Your Choices
Determine if You Can Afford It
Chapter 4: Decide What You Want in Investment Property
Do you want to immediately supplement your income?
Do you want to concentrate on building future income?
Do you want the equivalent of a savings account?
Do you want to buy and sell properties fairly rapidly?
Put the Tools in Practice
The Bottom Line
Chapter 5: The Inside Scoop on Real Estate Loans
Individuals
Financial Institutions
Governmental Sources
Institutional Lenders
The Paperwork
Grading the Property Owner
Chapter 6: When Good Loans Go Bad
Loans in Securitized Pools
Work the Workout Department
The Bank’s Prepwork
Chapter 7: Find Troubled Properties, Early
Get to Those Who Need You
Enlist the Lender
Sample Letters to Create Name Recognition
Other Groups of Referrers
Seminars
Lead Services and Advertising
Sample Ads Promoting Your Services
Other Ways to Find Distressed Properties
Sample Contact Letter
Chapter 8: Find Borrowers from Public Notices
Ask for Help
Torrens
Lis Pendens
Court Actions
Nonjudicial Foreclosure States
The Notice
Chapter 9: Eliminate Potential Problems, Quickly
Make the Easy Cuts
Going to RoundTwo
Chapter 10: Interview the Borrower
The Initial Contact
Before the First Meeting
The First Meeting
Make the Meeting a Success
When You Can’t Help
Chapter 11: Legal and Practical Due Diligence
Priority of Liens
Sample Estoppel Letter
Buying a Lien Search
Title Insurance
Doing a Lien Search Yourself
Chapter 12: Estimate Fair Market Value
Calculate a Value
Profile of Comparable Homes
Comparable Home Sales Analysis
Chapter 13: Rental Properties and Cash Flow
On Paper
Profit vs. Cash Flow
NOI and Cash Flow
Chapter 14: Additional Costs to Factor into Your Planning
Property Acquisition Expenses
Closing Costs
Calculate Closing Costs
Holding Costs of Investment Property
The Fixer-Upper
Repair Calculation Worksheet
Sales Cost
Put the Pieces Together
Chapter 15: Structure a Deal with the Borrower
California and Consumer Protections
No-Equity Asset Purchase
Equity Purchase
Value of Equity Worksheet
Equity Repurchase
Equity Repurchase Worksheet
Chapter 16: Structure a Deal with the Lender
Maximize Assets and Income
Minimize Risk and Expenses
Protect Themselves
Chapter 17: Go to Foreclosure Sales
Practice First
Go to Sales
The Anxious Lender
After the Auction
Redemption Rights
Possible Changes
Deficiencies
Chapter 18: Buy after Foreclosure
Local Lenders’ ORE Departments
Property Magazine
Following Up on Foreclosure Notices
Government Foreclosures
Property Search at Courthouse
Chapter 19: What Happens after the Purchase
I won’t have anyplace else to live.
I can’t afford a security deposit someplace else.
I can’t afford to move my stuff.
I have too much stuff and it won’t fit anyplace else.
I’m sentimentally attached to this place.
My dog is buried in the back yard.
I don’t want the neighbors to know I’ve been forced out of
my home.
I don’t want the children to change schools until the end of
the year.
Keeping the Owner as a Tenant
Renting to a Former Owner Worksheet
Problems at Closing
Manage the Move
Chapter 20: Tax Considerations
Deductions
Depreciation
Income Taxes During Ownership
Income Taxes on Home Sales
Deferring Taxes
Chapter 21: Go Out and Be a Hero
Glossary
Appendix: Understanding the Real Estate Contract
Index
About the Author