ForeclosuresMass - ForeclosuresMass Monthly - Investor Interview - The Reason Why I Do This! (October 2005)

A. I got into it by way of investigation. I read plenty of books on real estate investing that covered when best to buy, and I recognized foreclosures as an avenue to pursue. What I found was that there are several ways to try and succeed with foreclosures. It's best to gather information and speak to those in the know first, then try on your own. As I continue in the market, I continue to learn.

A. After learning and actively investing in real estate part time for three years, I recently quit my pharmaceutical sales job to focus full time on investing with my wife. We've expanded our interests to consulting others to help launch their real estate investing careers.

* Next 37 17 investors only!

A. Sure! Last April, I downloaded the listings from ForeclosuresMass.com and promptly did some follow-up marketing. We received a response and set up an appointment to visit the homeowner. The goal, as always, was to see if we could find a mutually fair and equitable solution to her troubles.

When we sat with the distressed homeowner, she admitted that she no longer could handle the house and the payments. I asked her where she thought we could help. She said that after thinking it over before we arrived, she believed that if we could stop the foreclosure from going through, make up the mortgage payments and pay off a lien, then she would split her equity with us. We agreed on this approach and went to work.

We tried to work with the bank first - they stalled until two days prior to the auction - and looked at trying a short sale. The bank even tried to foreclose on the property by giving us a false auction date. We found this out and talked to the attorneys, who gave us the reinstatement amount two hours before the auction.

The auctioneer and lawyer showed up at the auction, along with 15 hungry investors. With the woman and her children inside the property, and me outside with a bunch of disgruntled investors, I paid up in full to stop the foreclosure.

Returning to the house, I told the homeowner that her she had time to do what she needed to do to get a place and move without losing her home, her dignity, her credit, and her equity. We both felt grateful to have worked this out.

After coordinating two months of work on the property, I received a call from the woman. She told me that the lawyers had sent an overage check to her for the money I had used to stop the foreclosure. She was so grateful and trusting that she wanted to give me that check! I thanked her, but I felt she should have it and the rest of her money, as per our agreement. We sold the house and everyone profited. For me, the situation meant much more than making a profit. I was able to save a person from destitution and get her money when no one else would have given anything but an eviction notice. And this instance helped me remember the reasons why I'm in this line of work!

A. Whenever I am visiting with homeowners who are behind on their house payments, I rely on what I have learned about people through the years. That is - no one wants to be in this situation and often times, they are hoping we can help.

A. The biggest challenge is time. Foreclosures is a fast-paced industry. If the homeowner is not proactive about getting the help he or she deserves it can be too late to do anything. In these cases, you can't help them and you may make the decision to go to the auction. The other challenge is other inexperienced investors. They may actually hurt homeowners by not knowing the best way to handle a distressed property.

A. I enjoy offering a fair and equitable solution to homeowners who probably wouldn't have one otherwise. You know, the investor gets the bad rap sometimes in the public eye, but a fair, knowledgeable, and professional investor can help where no one else can.

A. Potential investors really need a clear idea of why they want to get into the industry. If you are drawn only by the chance to make money, then you will end up doing it for the wrong reasons. It's about helping people and how you run a business. That's what I keep in mind while I'm working on a tough case.

Q. What is the biggest mistake that new investors make and how can they avoid making it?

A. Making it all about money is the biggest mistake investors make. Do not let money be your master. Know what you can and can't do for the homeowner. Chose a mentor who is fair and ethical. Their experience can get you along further and help you in your success to becoming a real estate investor much sooner.

Michael Ouellette is president of Integrity Investors, LLC (www.888HomBuyR.com). He can be reached at (888) Hom-BuyR or via his web site.

Did you like this article? You May Also Like:

	Negotiation Skills: Developing Strong Relationships... A Key to Success with your Contractors Richard Cohen, Negotiation Coach and Consultant As a property investor, you're challenged by the sheer number of contractors with whom you must negotiate. It can be a struggle, but as Richard Cohen explains, it doesn't have to be. Build strong relationships with these folks and watch your negotiations go smoothly.
	Success Strategies: The Top Three Fears That Prevent You From Making that First Deal Kelle Sparta If you've yet to close on your first deal, it could be that something is blocking you. According to author, trainer, and coach Kelle Sparta, people usually have the following fears when it comes to real estate investing: they think they don't have enough information, they're afraid they'll lose money, or they believe they aren't the real estate investing type. Read her article to find out how to conquer these common, yet debilitating, fears!
	Interview with the Expert: The Nitty-Gritty Rehabbing Tips You Must Know Kevin Lacasse What's the biggest mistake real estate investors make when it comes to rehabbing properties? According to expert rehabber Kevin Lacasse, it's paying too much for a property! Read his tips for figuring out how much you should pay - and how to budget for those unexpected cost overruns.
	Interview with the Expert: Using Syndication to Fund Multi-Family Transactions Kate Dobens, Clear River Partners, LLC In the fall of 2006, Kate Dobens attended a training seminar about owning and operating apartments. Now, a year and a half later, she and her husband manage $18 million in multi-family assets - thanks to syndication. Read her advice about getting started in syndication - and how you can use it to consider deals that are double or triple in size.
	Interview with the Expert: Helping Families Get Back on Track Financially After Foreclosure Jennifer Matthews, Founder, Creating Financial Literacy, LLC You can play a key role in helping clients get back on their feet both financially and emotionally by understanding the challenges they face. According to Jennifer Matthews, an advocate for those who have been through foreclosure, often times people lack basic financial literacy and management skills - the lack of which contributed to their financial woes. In this livley article, Jennifer Matthews provides the essential tools consumers need to increase their financial literacy, repair their credit, and recover from foreclosure.
	Interview with the Expert: Know How to Use Your Contingencies David Camiel, Attorney If you think you can use an escape clause to get out of a real estate contract, think again. Because the courts look unfavorably at escape clauses, contingencies are a better way to protect your interests - as either the buyer or the seller. Veteran real estate lawyer David Camiel explains the legal ins and outs of real estate contingencies and how they can work to your advantage.
	Feature: How Real Estate Investors Make Big Money with Syndication Eileen Schwartz, Real Estate Investor Want to get in on a little "secret" real estate professionals have long known to offer a very considerable return on investment? Eileen Schwartz shares her knowledge of real estate syndication, a potentially lucrative strategy that involves forging a partnership with a group of shareholders to invest in multi-million-dollar properties. This introduction to real estate syndication provides everything you need to know to get started.
	Success Strategies: What Banks See When They Look at Your Credit File Tammi Koza and Carl Phinney, Family First Mortgage Corp. Most people know the credit score is the first thing the bank looks at when reviewing a credit file, but did you know lenders also look at a host of other data? In this article, Tammi Koza and Carl Phinny explain why you need to view your credit file the way a bank does if you're serious about investing in real estate.
	Technology Corner: Generate More Leads With Text Messaging Dylan Schleppe You know the problem with flyer boxes - you're forever filling them up only to find out two days later they're empty again. Wouldn't it be great if you could eliminate the flyer box problem - and give your prospects property info when they want it? Now you can with SMS (also known as text messaging). In his article, SMS technology expert Dylan Schleppe talks about the state of SMS and how real estate companies and investors are using this technology to generate leads 24/7 - without breaking the bank.
	Feature Article: Talk Like a Contractor to Explode Your Rehabbing Profits Paul Esajian What's the number one fear that prevents investors from rehabbing properties? The potential nightmare of working with contractors! The star of A&E's popular "Flip this House," TV show, Paul Esajian gives you three steps for establishing expectations with contractors up front. Learn how to talk their language - and reap the benefits!