June 2009

Investment Exchange

An educational real estate newsletter

ONLINE REAL ESTATE AUCTIONS

"Going once ... going twice ... SOLD!"

It's a familiar clich?? still heard at many live auctions, but we won't be hearing it for much longer.

That's because as with many industries in the world, the real estate investment industry is saving time — and making money — by taking advantage of the information superhighway.

It started with listing properties on the Internet and has now moved into its latest, most exciting phase: Online real estate auctions. And, unsurprisingly, Foreclosure.com has teamed up with the best and brightest on the Web to bring you this revolutionary to way to shop for investment deals.

Not only can you search for auctions online, but you can actually bid on properties, too. You can literally search for, bid on and purchase properties in your bathrobe with your morning cup of coffee in hand.

Perhaps the most beautiful thing about online real estate auctions is the time you save. No more scouring newspapers and courthouse records, looking at the exact same properties that everyone else is looking at. Instead, you can use Foreclosure.com to find the latest and greatest deals and be ready to bid with just a few clicks of the mouse.

Searching for real estate auctions online will also give you a competitive edge because you have easy access to hundreds of thousands of additional listings across the country. You can customize your search so you only find the results that interest you — nothing more, nothing less. It's much easier to stay on top of the competition when you don't waste your energy looking at lists of properties that aren't worth your time or money.

Online real estate auctions: it's the direction that the industry is heading and the nation's leading source for distressed property listings and education, Foreclosure.com, is at the forefront of that industry.

Visit us today to see how easy it is to get started bidding online for
real estate deals!

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Site feature spotlight

KNOW YOUR
STATE LAWS!

When you've got a bunch of undervalued listings in front of you, it can be tempting to blindly dive-in head first to seal the deal before someone else does.

Of course, this can turn into a big blunder. Not doing your due diligence ahead of time can mean some seriously expensive mistakes down the road.

One of the biggest areas of difficulty is the laws governing distressed real estate investment. Not only are there books full of them, but individual laws vary from state to state. You've really got to do your research before you make any big financial commitments.

A prime example is the right of redemption. This law, which exists in many states, protects a homeowner in default by giving him or her a window of opportunity after the sale of his or her property at auction to get back on track with the mortgage and reclaim the property.

It's an added investment risk because you could waste a significant amount of time and effort that you put in if the previous owner manages to pay back all the late payments, interest, lender's fees etc. Some states' right of redemption laws give homeowners in default as much as a year to reclaim their properties.

Foreclosure.com wants to protect you from situations like these by helping you know the law inside out and backwards (no law degree required!).

When you search for a property on our Web site, a search results page will come up that has a list of all the properties in your desired area that fall within the criteria you specify. At the bottom of that search results page, you'll find two important links:

• one that tells you the foreclosure laws of that state, and
• another that tells you the steps to purchasing a property in that state.

Every single results page on our Web site has these two links. We encourage you to read them carefully and double-check them before you sign on the dotted line. It will help you navigate the legal waters of your deal much more smoothly.

... and it might just save you a boatload of grief!

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Web site search tips

Find your dream home 'quick' and
for less

QuickSale℠ is the absolute best place on the Internet to find the hottest distressed real estate deals in your area.

What has that got to do with Foreclosure.com? As of this month ... everything.

Along with all the other amazing investment opportunities available in our database of more than two million nationwide listings, Foreclosure.com recently added QuickSale℠ properties into the mix.

These homes are aggressively priced to sell fast. That means you won't find a better selection of great, affordable homes anywhere else ... period.

QuickSale℠ works direct with banks, lenders and other financial institutions throughout the nation, negotiating the lowest possible home prices to help them move inventory fast and help you achieve the dream of homeownership.

Its experienced team of real estate professionals is able to slash home prices drastically for your benefit, representing tremendous money-saving opportunities to you as the buyer.

Why overspend or even pay fair market value for a home when you don't have to?

In fact, when it comes to QuickSale℠ properties — all of which are available to purchase via online sealed bids through Foreclosure.com &mdash we encourage you to bid the amount that you feel a home is worth or what you can afford.

ALL OFFERS ARE CONSIDERED! Wait ... it gets better.

Potential buyers are invited to attend one or all of the scheduled QuickSale℠ open houses to inspect a property — we don't expect you to buy blind! There is also no pressure to submit a sealed bid on a QuickSale℠ property if there is no interest in purchasing it.

When you do come across your dream home, we make it so convenient to purchase it, ensuring that the process is as simple and enjoyable as possible. From helpful agents to complete financing options, we take you by the hand and walk you through the entire process step-by-step.

Purchasing a home is a big deal and among the most important investments that you will ever make in your lifetime. That's the reason we are committed to helping you find your dream home at the lowest price possible thanks to QuickSale℠.

So what are you waiting for?

Head over to Foreclosure.com today and check out all the awesome QuickSale℠ deals hiding right in your backyard. Just perform a quick search from the Foreclosure.com homepage and we will automatically retrieve all the QuickSale℠ properties available in that area.

Hurry! QuickSale℠ deals sell fast ... be sure to catch them before they disappear! CLICK HERE.

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Hot off the press

ECONOMISTS FORECAST TURNAROUND

The first quarter of 2009 experienced an incredible 19.1 percent drop in housing prices across the country, according to the latest Standard & Poor's Case-Shiller Home Price Index, as well as a record-setting 342,000 new foreclosure actions.

These staggering figures are part of the steady slide we've become all too familiar with since mid 2006, but it isn't going to last forever.

Many economists believe that housing prices are now so affordable that people will start seeing the logic in becoming homeowners and finally start buying again. And more buying, of course, means stability for the market and an end to rock-bottom home prices.

But not all "experts" share that school of thought about the housing market's poor first quarter performance. Sliding prices, they assert, are not an indicator of a healthy economy, much less an imminent turnaround.

The turnaround, they predict, is more likely to happen closer to the end of 2010. That's when some expect housing prices to really be at their lowest, giving the market a chance to stabilize and then rebound.

Regardless of which analysis you decide to follow, one thing is certain: Buyers and investors are holding the real estate cards right now and need to pounce on the great deals available in their areas before it's too late.

So when the cycle does start its upswing, it will mean significant profits for investors who chose to get in on the ground floor. Smart buyers and investors are striking while the iron is hot — and right now, it's never been hotter.

You can visit Foreclosure.com for the latest in real estate news, as well as hundreds of thousands of quality distressed property listings just waiting to earn you serious returns.

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Our success stories

All Homes
Must Be Sold!

Real Estate Disposition, LLC (REDC) has sold more than $5 billion of real estate assets since it launched nearly two decades ago, establishing the company as the pre-eminent online auction house on the Web.

In fact, just last year, REDC moved a staggering $3.4 billion in assets, staging 300 auctions and selling 32,800 homes, during one of the most sluggish periods in recent market history.

When the deals are this hot they tend to sell fast ... real fast.

REDC operates under the mantra that "All Homes Must Be Sold." It's a simple concept, but one that would not be effective unless buyers felt comfortable with the process. Buying a first home or investment property is a big deal that typically costs a significant amount of money. More often than not, buyers want to inspect and do their due diligence on homes before purchasing them — they do not want to "buy blind."

And that's what often happens at traditional foreclosure auctions — the window of opportunity to get inside these homes is small ... and sometimes shut entirely. REDC, on the other hand, encourages buyers to visit and inspect all of the properties under consideration before bidding on them to ensure total confidence.

In fact, REDC has streamlined the bidding process into easy-to-understand steps:

1. Review
2. Visit
3. Register
4. Attend
5. Bid
6. Close

It really is that simple. For a more detailed breakdown of this process be sure to visit the "How does it work?" section on the REDC Web site right here.

So how do you get started searching for and bidding on the most amazing foreclosure deals in your area? All you have to do is visit Auction.com and click on an area on the map of the United States in which you are interested. There are several other search options on the main homepage that are designed to help you find the home of your dreams faster and at the lowest price possible.

The best part is that you don't have to be an experienced real estate expert to search or purchase a property through the REDC system. In addition, REDC works with top lending partners that offer easy financing at today's low interest rates! That means you can find, buy and finance homes all in one convenient location. It is safe, easy and compliant with all legal regulations.

If you're still unfamiliar with the online auction world then REDC (www.auction.com) is a great place to get up to speed — this is the future of how homes will be purchased ... don't get left behind!

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Real estate tips

DO YOUR HOMEWORK!

Yes, the advent of online auctions is making buying distressed properties that much easier. However, that doesn't mean that the process is a total breeze.

If you've never been to a real distressed property auction, you need to go. Why? Because even the most successful investors had to start somewhere, and that "somewhere" is education.

Educate yourself about the foreclosure process and, once you've done that, educate yourself about how an auction actually works. All of this information and more is available on our Web site in the Learning Center, but once you've done your reading, it's time to actually see what's going on for yourself.

The bottom line is that although an online auction is more streamlined than a live auction, the fundamentals are the same, and it pays to understand the climate of an auction, the competition you'll be up against and the pitfalls that you want to avoid in order to make top dollar.

Even Foreclosure.com employees, who work for the industry's leading online firm, visit courthouses to make sure they understand how the "real world" is working. The only way to stay at the forefront of your domain is to keep educating yourself and that's why we ensure that everyone from top management to employees to Foreclosure.com members has access to the best information out there. (Click here to read more about the Foreclosure.com staff field trip/refresher course on the auction process.)

The idea is to do your homework, stay sharp and make sure you know the ins and outs of auctions, both in person and online, so you can make the most of your investment prospects.

... and who knows? You may just walk away a new homeowner!

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Deals of the Month

HOT FORECLOSURE DEALS!

Los Angeles, CA
$469,900
5 beds/4 baths
3,218 sq ft.

Richmond, VA
$104,900
4 beds/1.5 baths
2,214 sq ft.

Charlotte, NC
$244,800
4 beds/2 baths
2,640 sq ft.

Linda's Learning Lane

BIDDING IS FUN!

The "World Wide Web" is absolutely amazing! It has made the search for that perfect real estate deal easy and fast.

Online auctions have been around a long time — from ebay to UBid, buyers can find great deals on books, jewelry and cars. Real estate is no different ... especially if you are educated and understand how to bid on real estate in an auction environment.

Let me take you through some high level steps to be successful.

First, you need to do your homework. You have to spend time researching the properties on the various auction companies lists. Use this time to get the answers to your questions. Even online auctions give you the opportunity to physically view certain type of properties if you desire and can readily visit the open house.

Your preparation should be the most time consuming step because it is the most important — do not take it lightly.

Second, you need to register to bid during the auction. Typically, online real estate auction Web sites will make you enter your information so that they confirm you are a valid bidder. Once you place your bid on a property that you are interested, the auctioneer will notify you whether or not you are the winning bidder.

Keep in mind that companies handle this notification process in different ways. For example, when you bid on a HUD property online you need to keep checking to view the status of your bid. On the other hand, other auction houses will notify you electronically via email within 48 hours.

So, again, do your homework on the process for the different auction houses so that you are educated and aware. Spend time reading their frequently asked questions (FAQ) sections on their sites so that you are prepared and not surprised.

Bidding is fun and can be highly profitable if you do your homework and get educated. It's the reason we are committed to providing you with timely education. We care that your experience be successful.

In fact, one of our internal commitments is to our staff at Foreclosure.com. We actually take our staff to live auctions each week and teach them the foreclosure process so that their understanding of the value we bring our subscribers is deeply ingrained in their individual responsibilities.

If ever you are in South Florida, let me know and we will invite you along. Happy searching and bidding!

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