Posted by Charles Parrish on May 28, 2006 at 20:59:37:
This is a bond that the trustee pays. It has nothing to do with you trying to control an equity.
Welcome to real estate investing. You are in for an exciting rewarding and sometimes disappointing venture into the unknown and at the same time familiar business of real estate.
They call it real estate, but I see it as ?People Estate?. It is all about people, everything is negotiated by people. Real estate is not human, it is judged by its location, cash flow, potential and other innate virtues. It will fall apart if not taken care of, and will disappear if the taxes are not paid. Real estate demands that profits from it be paid to lawyers, insurance companies & maintenance-people, even when it does not produce income. Real estate is tenuous; the value could be gone by the stroke of a zoning pen, a storm or a decline in value. Real estate is brick, mortar, 2x4?s and drywall. Real estate is what we make it and how we value it.
There are many venues to get involved in; you have chosen pre-foreclosure and short-sales. Your choice of pre-foreclosures is like writing your final doctorate thesis before graduating from high school.
I hope you do not interpret my response as ?hype? I assure you it is not, but only my observations to your comments.
Pre-foreclosures can be an emotional negotiation. You are dealing with owners who are about to be put out of their homestead. You will be attempting to capture equity from a family who are deeply distressed, and ready to lose their home.
Even for the most experienced investor, this is a hard venue in real estate investing. The regulatory agencies are watching foreclosure investors. They are looking for fraud, misrepresentations, and unethical conduct.
By suggestion to you is to learn and master the skills required to be on top of the heap in the real estate foreclosure market.