By Nathan Stitt
Mike Watson Investing

Foreclosures around the country are still happening at an increasing rate. Foreclosures.com recently reported that foreclosure fileings have risen 93% from January to November 2007. They also reported the number of REO properties up 41% from a year ago. Given all the factors that have led to more foreclosures, this is no surprise.

To make honest profits in the foreclosure market, we are obligated to create win/win deals. As members of the MWI community, we have the training to find and profit on amazing deals. We can never use this knowledge to take advantage of someone in a distressed, foreclosure situation. Let’s look at some great ways to ethically create profits in our current foreclosure market.

First, the current market is presenting some very unique opportunities to buy REO properties in bulk. On a recent Training Call, Mike Watson talked about a portfolio of over 400 foreclosed homes he was looking into. Some of these properties’ reason for delinquency was less than $500 in back taxes. Purchasing portfolios like this allow investors to put large amounts of entry-level housing or housing with low rents back into the market.  With all the foreclosures putting more renters into the market, there is a huge need for affordable housing and rental properties. When we fill needs, we make money!

Second, there are so many foreclosures nationwide, that many investors are now fleeing from this type of investing. This presents some unique opportunities for investors that are educated and know what to look for. If we look at foreclosures as more than just a property behind on a mortgage payment, we will find higher profits. That leads us to the most important strategy for making money with foreclosures.

Third, and most importantly, if you find the highest and best use of a foreclosed property -You WILL profit! The vast majority of foreclosed properties are single-family residences with bad financing. For most of these properties the only options are traditional foreclosure techniques. These are not the type of properties we are looking for. However, there is another large segment (15-20%) that have upsides most investors don’t see.  When a foreclosed property has an unexposed Highest and Best Use, THAT is the kind of foreclosure we want! An example is a single home on half acre of land. Another is a home on a lot actually zoned for a much higher density. Foreclosures can be a great way to find deals with this kind of potential.

To learn much more about new and ethical foreclosure strategies make sure to be at the “Any WHERE! Any TIME!” Super Camp this January, in San Diego. At this event, Mike Watson will extensively teach about creating opportunities in the foreclosure market, as well as other strategies to find, evaluate, and profit on investing deals in our current market.

Get more information on the “Any WHERE! Any TIME!” Super Camp.