Build up your powerful foreclosure investment team

By: Zeng Han Jun. CPCG, Singapore



Being a foreclosure investor is a daunting task and requires lots of different skill sets. It becomes even more difficult if you are going into it alone. There are different kinds of foreclosure investing and mainly falls into three categories:



1)Pre – Auction;




2)Auction;




3)Post Auction.





Each stage of foreclosure investing has its unique set of difficulties and place emphasis on different skill set as well. However, being able to specialize in a certain stage of foreclosure investment normally brings about high returns. To be able to specialize is definitely not a one man show. If you have been to the local auction scene, you will be able to understand what I am saying. The whole auction process does not provide enough information to the bidders and many of them actually act on instincts. Acting on instinct, for a foreclosure investor often leads to the winner’s curse.



A winner’s curse occurs when Mr. Foreclosure Investor walks away happily, full of ego, together with his highly overpriced property. If Mr. Foreclosure Investor were to organize a team, with each member providing their own unique set of expertise, he will be able to make an informed investment decision and increase the probability of hitting a higher return on his distressed property.




What would a powerful team of foreclosure investment team consist of? The most ideal team structure, from my point of view, will run in the following order:



1)The manager, which is also the main principal for foreclosure investment;




2)The real estate lawyer;




3)The mortgage broker;




4)Accountant;




5)Contractors.





Everyone, whom I have stated above, plays a crucial role throughout the investing process. Depending on the stages that the foreclosure investor decides to focus on, he will have to leverage on certain team member’s expertise more than others.



In the local scene, more people focus on the auction process. However having a powerful team of foreclosure advisor will enable the investor to venture into pre or post auction stage and hit upon a normal than average return potential.


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