Advice From A Millionaire: Get It On The Boom In Foreclosures

Dr. Harsimran Singh is an immigrant from India who came to America with $8. And is now a millionaire. He did it by teaching himself to buy foreclosed properties. He has written a book, "A to Z of Foreclosures-Real Estate Worth Millions Acquired with $101". We asked him to sit down with us and give us an overview of his strategies.

" There are three stages of foreclosure," said Dr. Singh. "One is a pre-foreclosure whereby the person who owns the house still has a mortgage, but is late making the payments. Most people outside of investors don't come to know about it because there is no public record, or a lein on the house. It's very difficult to find a property, and buy a property, on pre-foreclosure stage.

" The second stage is the auction or default stage, that stage is the bank has already put the lein on the property now everybody knows about it because it becomes a matter of public record. There is a bit more competition at this stage but it's possible to buy a property at this stage. The auction stage is mostly a waste of time.

" Most people tend to think they're going to buy a house at auction. But follow the advice in my book and you'll find it's much easier to find a property, and at much cheaper prices, than trying to buy in auction.

" The third stage is the bank already owns the property, so at this stage there's a bit more competition but it's possible to buy it. Often the house is vacant and it's easier to do it.

" Aside from these stages, the best time to buy a house these days is a short sale. In a short sale everyone is is a win, win, win situation. The homeowner is in a win win situation because he has a mortgage on the house which is more than the appraised value of the house. The bank doesn't want to own the property, the bank would like to get rid of it so the bank is in a win win situation. The investor is in a win win situation because he can buy the property at a discounted rate by negotiating with the bank.

" You don't have to make friends with the banker. It's the brokers you want to approach. Go around a neighborhood you are interested in. Go through a list of brokers. Find the of houses that are being foreclosed upon, and it's a matter of public record, so you can find them.

" An important thing to remember. Many people feel guilty or unethical about trying to buy the house in foreclosure but there is no need to do so. Especially in short sales, when the bank is willing to take the best price a homeowner can get from a potential buyer. The bank is willing to take the lower offer rather than have to foreclose on it.

" The person living in the house really doesn't want to spoil his credit so he wants someone to buy the house. The bank doesn't want to own it, and a person like us would like to buy it at a discounted price and fix it up and either rent it to someone else or sell it and make the profit from it.

" So everybody wins.

" The beautiful part of the real estate business is that even if you don't have any money you can still buy the houses.

" You need one of two things, either money or time.

" In my book, "A TO Z OF Foreclosures" I have given 14 techniques of how to buy houses with no money down. It's not possible to use all of them but let me explain one of them.

" Let's say you don't have the money but you have the time so you go and find the house and you bring it to the investors. You tell that person, it is a house with a market value of $200,000 but I am able to buy it at $20,000 dollars, would you put in all the money for me and make me a 50% partner. Any wise investor would want to do that. Rather than getting the full price he is getting half the price and he's still getting a good percentage of the profits from it.

Helpful websites on buying foreclosure homes:
www.Drsinghbooks.com
www.preforeclosurefortune.com
www.foreclosure.com
www.foreclosureproperty.reply.com
www.foreclosurefreesearch.com
www.realtystore.com
www.homes.bankforeclosureslist.net