The real estate crisis could fatten your bank account

If you're selling real estate in one of the areas hardest hit by foreclosures, think about rental management for a minute.

It could be your way to turn the lemon market into lemonade for you - AND to assure yourself of a good supply of buyers next year and the year after.

Let's start at the beginning - finding and selling the rentals.

First, search out the foreclosed homes that would make good rental properties. You know, the ones that are structurally solid mid-size properties at a price that will allow them to become rentals. In other words, homes whose payments will be less than current rents for comparable homes. (That means you'll have to research rentals just a bit.)

Turn yourself into the encyclopedia of all foreclosures with rental potential.

Next, advertise the fact. Target your marketing toward those entrepreneurs who are actively seeking rental properties. They're people who either have a good chunk of money stashed away, or excellent sources for obtaining financing. They want the best bargains in town, so show them that you know where they are.

Be sure you preview each of those homes and talk with the agents ahead of time. You'd feel pretty silly taking an offer on a home on a Thursday when the deadline for bids was Wednesday night.

As a rule of thumb, Mortgage company REO agents won't look at an offer that's more than 10% under list price - check with each agent and see if that holds true for the company they're representing.

Some of your buyers will try to go 20 or even 30% under - and that is probably a waste of their time and yours - so have your facts before you talk with them.

If you aren't sure how to appeal to that crowd, get in touch. These people could become not just your bread and butter, but your gravy as well - so do what it takes to reach them.

Tomorrow I'll tell you how this down market can create next year's income... And remember, if you need help creating your marketing materials, I'm as close as your email, and helping you make more money through your marketing efforts is what I do. Write me.

P.S. If you're not a Realtor, but could provide services needed in cleaning up, fixing up, and maintaining those REO properties, now is the time to contact every agency in town and offer your services.

Be sure you have a well-written flyer or brochure, and attach a business card. You're going in as a professional offering assistance - so look the part!