If You Have To Think About It, You Will Lose Out

If you are truly interested in purchasing a great foreclosure deal in Loudoun County (or anywhere for that matter), you have to be ready to jump at the opportunity. Immediately. If you have to think about it, you will lose out on every great deal out there. Guaranteed, you are not the only who thinks that the property is a phenomenal deal. Others who think so have already prepared themselves to jump at such an opportunity and have already submitted their offer while you are still thinking about it.

Would you have to think about it if someone was offering 3rd row, 50 yard line tickets to the Redskins/Cowboys game for $50 total including club and parking passes? If you were a true Redskin or Cowboy fan, you wouldn't even blink before saying yes. Everyone knows that those tickets are worth 10 times that and will be gone within minutes.  You have to act immediately or you will lose the opportunity to get them. The same goes for investment opportunities.

If you think we're exageratting, check this out:

• All of the properties we've posted here on Loudoun Foreclosures are sold/no longer available
• All of them sold within 1 week of being listed at that price
• Several had multiple offers (one had four offers on it)
• The majority of the offers were submitted within 24 hours of the property hitting the market.
• Some of the offers were submitted within as little as 6 hours

If you are truly interested in purchasing a foreclosure or short-sale, here's what you need:

• Clear and definitive knowledge of what you want. This includes what type of property, whether you wish to "flip" it or rent it out and what price point you are looking in.
• A recent lender letter or credit statement showing that you are qualified for a loan or have the cash to purchase the property. This should be in your hands prior to submitting an offer because it needs to be submitted at the same time as the offer.
• A significant amount of earnest money that is able to clear immediately.
• The ability to settle quickly. Most banks like to settle as quickly as possible, even in as little as 2 weeks. For example, if you are purchasing a Countrywide foreclosure and it's a cash deal, you have to be able to settle within 15 days of ratification. If it's a non-FHA loan, then it's within 30 days.

The reason why so few investors make money is that very few actually "get it". The successful investor is ready to pounce on the few truly great deals ou there the moment they become available. That leaves the not-so-savvy investors with the "so so" deals, which have a much smaller ROI and may even lose money. To increase your chances of being successful, you have to be at the same level, if not ahead of, the other savvy investors all around you.

Are you?