St. Augustine, Florida (PressExposure) April 26, 2008 -- "There is also an added benefit of helping a distressed homeowner who needs to sell. From a market standpoint, this can be a beneficial experience for both parties. Many people, in fact, make a full-time profession of purchasing pre-foreclosure homes and reselling them," explains Kaller in a recent interview.
Pre-foreclosures are houses in the default phase of foreclosure; where the bank has filed initial foreclosure papers. Buying during the pre-foreclosure period, before the Sheriff Sale or Trustee Sale, is one of the best ways for anyone to get involved in real estate investing.
Jeff also explained that buying houses in pre-foreclosure enables the investor to create unusually large equity spreads. Clearly the sub prime mortgage crisis has produced economic uncertainty and has caused a lot of foreclosures which are investment opportunities for Kaller and his students.
Current reports indicate this is true. Recent studies show some of the best bargains in the foreclosure market are realized in pre-foreclosed properties. Training and education are essential to recognizing pre-foreclosure opportunities.
Jeff Kaller teaches his students to negotiate with the lender to discount what is owed on the mortgage; large spreads of equity can be created on houses that are over leveraged with loans. His students have learned how this type is done only on homes where loans are in default. Because lenders are under pressure to liquidate bad loans rather than take the property back, large discounts can be negotiated. After becoming familiar with the issues that cause lenders to discount, larger discounts can be achieved as investors develop their negotiating skills.
"Once you find how easy pre-foreclosure makes it to buy houses cheap and resell for five figure profit checks, it makes little sense to pursue real estate investing any other way in today's market," says Kaller.
This Press Release has been submitted by PREasy.com