Michael Murphy at MarketWatch.com lays out the compelling, and concise, case (bullets have been shortened):

1. Desperate sellers. Not the homeowners, of course. It’s the banks that financed the mortgages that are desperate…. That gives the few buyers out there big leverage.
2. Little competition. … those investors willing to be patient and do the work will reap big rewards down the road.
3. Low financing rates. … getting 4-to-1 to 32-to-1 leverage at a low fixed rate of interest is like having someone give you money … rates for 30-year fixed mortgages are an incredible 4.5%. That’s the lowest in 39 years….

To drive his point home, Murphy correctly points out that the real estate summer sales season is almost over. Most house hunters prefer to get settled before school starts and certainly before the holiday season begins to heat up.

Indeed, the time between Labor Day (Sept. 6, 2010) and New Year’s Day (Jan. 1, 2011) is the perfect time to “seriously consider making a low-ball bid on a distressed situation.”

Get a headstart today with a seven-day trial to search Foreclosure.com for the best deals in you’re area — it’s FREE! Click here.

So says Colorado Springs, Colo., real estate agent Shawn Jardine in a recent article from the Christian Science Monitor:

“It’s a feeding frenzy right now. On one property listed for $65,000, I had 15 offers. The best offer won at $20,000 over asking price.”

Wholesalers, which are basically investors with lots of money who can buy in bulk, are “snapping up” a healthy chunk of the best distressed property deals currently available on the market.

It’s common these days for wholesalers to swoop in and make all-cash offers, making it difficult for first-time homebuyers and other “small-time” investors to land their deals.

With the nationwide housing market riddled with bargains, and a volatile stock market, wholesalers are literally banking on the notion that the market will eventually rebound. Perhaps not to pre-collapse levels anytime soon, but nonetheless, it’s bound to happen.

When and where is still a huge question mark. In the meantime, opportunistic wholesalers have the ability to buy low now, renovate their homes (if necessary) and then hang onto them for however long it takes to rent or re-sell at later time for huge profits.

To beat wholeslaers, investors and other buyers to the punch, we always recommend that you consider our FREE email alerts. We send you the hottest deals in your area the moment they hit the market.

Timing is everything … now more than ever!

Foreclosed homes aren’t just great deals for potential homebuyers — renters, too, can enjoy the savings.

More and more homeowners and investors are realizing they bit off more than they could chew with their current mortgage commitments. It’s among the many reasons foreclosures are up across the board.

When the payments become just too much to handle, these homeowners and investors have few options other than to sell, rent or simply walk away and lose their homes to foreclosure.

The latter option, foreclosure, is really the worst of the bunch.

But sometimes it happens so fast — in as little as one to three months in several states — that homeowners and investors are left spinning, wondering what just happened to them.

The good news is that these folks are starting to catch on and realize that these are ideal rental conditions. Why lose a home when you can find someone else to move in and pay all or most of the mortgage bill?

Indeed, homeowners would prefer to rent their homes rather than to lose them outright.

Of course, homes in foreclosure are not necessarily always on the market as rentals. In fact, homeowners and investors may not even know that renting is an option.

That’s where you come in.

Homeowners are generally very attached to their homes, but might be willing to entertain reasonable rental offers if it means salvaging their long term investments.

So how do you approach a homeowner in distress and propose a rent agreement?

Here are some basic pointers:

Learn about the property
Before contacting someone facing foreclosure, find out as much information as you can about the home. Research how much the home is worth, how much the homeowner still owes and the monthly mortgage amount. This information will give you a good starting point to know what to offer in terms of rent.

Expect non-traditional agreements
Any agreement you strike with a homeowner facing foreclosure will probably follow unconventional terms. For example, consider offering a six-month agreement or even a month-to-month. If you are willing to tolerate minor inconveniences in exchange for a lower rent cost, propose showing the house to potential buyers while you are renting. Homeowners in distress will probably slice several hundred dollars a month off the mortgage if it means you are flexible and help them cover some or all of their mortgage.

Tactfully propose a fair exchange
A simple way to approach a homeowner is with a hand-written letter that describes your needs as a renter. Offer to provide references upon request and explain that you are willing to entertain flexible terms. As a negotiator, it is to your benefit that the homeowner be aware that you know he/she is in foreclosure.

Where do you find homeowners facing foreclosure?

First, understand that homes that have been foreclosed are no longer in the hands of the homeowner. These are being resold by the original lenders and are probably already listed with agents. Therefore, the properties you should look at are classified as preforeclosures. This is an important point — make sure you fully understand the differences between homes in foreclosure and preforeclosure (facing foreclosure).

To check out a very comprehensive list of nationwide preforeclosures CLICK HERE. Start your nationwide foreclosure rental search now — it is free to search with a FREE 7-Day Trial.

Join us for a LIVE online presentation tomorrow (February 19) at 4 p.m. ET. and get the most out of preforeclosure deals with insider money-making secrets and tips that are proven to work!

“Turn Pennies into Profits with Preforeclosures” is a 90-minute online real estate investing training presentation with industry guru, entrepreneur and instructor, Lance Young.

Get the inside scoop on how to invest in preforeclosures — widely considered the safest, most profitable deals available in the distressed real estate market — with assistance from an investor (Lance) who has achieved enormous financial success thanks in large part to a preforeclosure approach and philosophy that generates positive results almost instantly.

Lance will teach you:

• The five common mistakes beginners make and how to avoid them
• How to find the right real estate agent and have him/her work for you
• How to find the right buyers for your preforeclosure deals
• Where to find the right homeowners in preforeclosure
• What and what NOT to say to homeowners in preforeclosure

This is an ideal educational experience for aspiring and experienced investors alike who want to get the most out of their preforeclosure deals.

To reserve a spot now CLICK HERE. Spots are limited.

Of course, we will also open the floor up to you during an interactive question and answer session. Remember, if the timing is bad and you can’t make the LIVE presentation tomorrow please remember that we will email you the recorded version as soon as possible … there’s no excuse to not sign-up for this great training opportunity!

Webinars are LIVE 90-minute educational sessions that let participants see, hear and interact with real estate experts right from their personal computer screens. In fact, Webinars are driven in part by visitor feedback and questions that are posed during the sessions. For more information and course offerings click here.

That’s the focus of our most recent edition of “Investment Exchange,” which is our FREE real estate email newsletter.

In fact, we plan to delve into preforeclosures in great detail over the next three editions of “Investment Exchange” in an informative three-part series. And that’s all because we feel strongly about the massive benefits and financial rewards of preforeclosure investing.

What’s preforeclosure?

During preforeclosure, a property still belongs to the homeowner, but the lender has initiated legal foreclosure procedures because payments have not been made and the loan is considered to be in default.

Purchasing preforeclosure deals — many of which are available for up to 50 percent less than current market value on Foreclosure.com — is a lucrative real estate investment technique that is perhaps the smartest and safest option available to experienced and first-time investors alike.

In the first part of our preforeclosure series, we discuss how to find good preforeclosure deals before the “competition.” From where to find potential investments to how to analyze them, our goal is to give you the tools you need to get on and follow the preforeclosure scent.

One quick hint: It smells like money.

To sign up for the FREE real estate newsletter, “Investment Exchange,” click here.

Case in point: Pop superstar and cultural musical icon since the late 1960s, Michael Jackson, is in jeopardy of losing his sprawling 2,800-acre Neverland Ranch in Los Olivos, Calif., to the lender, which recently filed a notice of default in the amount of $23 million.

We sift through countless distressed nationwide real estate listings each and every day. In fact, at press time we had more than 1.5 million listings currently available on Foreclosure.com.

With this massive volume of accurate data it is hard to point out each and every instance. We’ve been doing it more and more with our “Deal of the Day.”

However, we felt compelled to pass along this latest news of the Jackson foreclosure to illustrate that unexpected situations constantly emerge that can trigger a default notice — and it can happen to anyone.

To check out the listing on Foreclosure.com at 5225 Figueroa Mountain Road in Santa Barbara County click here.

It’s important to note that this property is in preforeclosure. Indeed, Jackson still owns it and the bank has not repossessed it … yet. In fact, he has about 120 days (February 2008) to bring the loan current and stop foreclosure.

On the other hand, an independent investor can also work out a deal with Jackson and the bank in the next few months to purchase the ranch while it’s in preforeclosure. He no longer lives there, which means that it may be possible to settle for far less than the $23 million owed to the lender.

Who knows …. someone could be in for a real “Thriller.” That’s because there is no telling if the elephants, giraffes and other animals, as well as the high-end toys that could be included in a package deal.

That’s the reason we decided to bring him back for an encore performance.

During a 90-minute Foreclosure.com interactive educational Webinar, Lance will walk you through his easy-to-follow and wildly successful techniques to quickly make tremendous profits with distressed properties.

In fact, he’ll teach you how to find, negotiate and resell properties for big bucks with just a $10 deposit!

Here are just some of the tips you will learn:

• Where and how to find preforeclosure properties
• How to easily buy and sell preforeclosure properties
• Learn to negotiate with banks to get the best deals
• How to maximize your profit on EVERY deal

Catch this amazing opportunity to learn all about the preforeclosure process on Thursday, November 8, 2007, at 4 p.m. ET. Register online right now — it’s a cinch and spots are limited!

CLICK HERE.

Lance’s expertise in real estate investing is grounded in more than 19 years of independent real estate deals and mentoring of novice investors. His investing techniques require just a $10 contract deposit and 10 hours a week finding the most profitable opportunities.

That’s it!

So if you want to learn the proven tips and investment strategies on how to take advantage of one of the most lucrative investment opportunities in real estate, preforeclosures, then you must check out this one-of-a-kind Webinar presentation.

Space is limited, reserve your seat today!

Webinars are LIVE 90-minute educational sessions that let participants see, hear and interact with real estate experts right from their personal computer screens. In fact, Webinars are driven in part by visitor feedback and questions that are posed during the sessions. For more information and course offerings click here.

Do you want to learn how to find, negotiate and resell properties for big bucks with just a $10 deposit?

Great, because industry expert Lance Young is going to show you how to do just that when he shares his blueprint for success during an online real estate training session called, “Preforeclosure Deals.”

During a 90-minute Foreclosure.com interactive educational Webinar, Lance Young — a renowned real estate investing expert — will walk you through his easy-to-follow and wildly successful techniques to quickly make tremendous profits with distressed properties.

Here are just some of the tips you will learn:

• Where and how to find preforeclosure properties
• How to easily buy and sell preforeclosure properties
• Learn to negotiate with banks to get the best deals
• How to maximize your profit on EVERY deal

Catch this amazing opportunity to learn all about the preforeclosure process on Tuesday, August 28, 2007, at 9 p.m. ET/6 p.m. PT. Register online right now — it’s a cinch!

Lance Young’s expertise in real estate investing is grounded in more than 19 years of independent real estate deals and mentoring of novice investors. His investing techniques require just a $10 contract deposit and 10 hours a week finding the most profitable opportunities.

That’s it!

So if you want to learn the proven tips and investment strategies on how to take advantage of one of the most lucrative investment opportunities in real estate, preforeclosures, then you must check out this one-of-a-kind Webinar presentation.

Space is limited, reserve your seat today!

Webinars are LIVE 90-minute educational sessions that let participants see, hear and interact with real estate experts right from their personal computer screens. In fact, Webinars are driven in part by visitor feedback and questions that are posed during the sessions. For more information and course offerings click here.

The preforeclosure stage is a time when a homeowner is behind on his or her mortgage and the lender has filed an official Notice of Default (NOD) or Lis Pendens (LIS) to recoup the payments.

This will often lead to foreclosure if the homeowner cannot come up with the cash or negotiate a deal with the lender to remain in the home.

Rather than face eviction and endure personal credit turmoil, a distressed homeowner in preforeclosure will often look to sell the property as soon as possible and use the proceeds to pay off outstanding debts with the lender and relocate.

It’s an unfortunate situation — one that is outside the control of anyone but the homeowner and lender. However, working with a homeowner to resolve the matter before foreclosure is one way to help and provide him or her with much-needed relief.

It can also translate into huge savings because preforeclosure investing gives you the most options and highest percentage of profit.

Here’s a tip to get you started:

When working preforeclosures, the earlier you make contact with the homeowners, the more options you have to capitalize on great deals.

How do you do that?

First, you need to identify homeowners in your area who are in preforeclosure. This can be accomplished at no cost or obligation using our FREE 7-Day Trial.

With a solid set of leads it is then smart to drive into the neighborhoods and canvas the homes from the curb to determine which are the most desirable.

The next step is to communicate with the homeowner. This can be done in a few different ways, and we recommend that you try multiple approaches to ensure that you get noticed by the homeowner.

Here are a few quick methods to contact a homeowner in preforeclosure:

• Letters
• Post cards
• Contact the homeowner’s attorney
• Direct purchase
• Short sale
• Mortgage purchase

We expand on each of these strategies in our e-Book entitled “Cash-in on the Foreclosure Process: How to buy a Foreclosure.”

This educational resource is packed with tips and advice that is required reading if you plan to get started investing in distressed real estate.

Best of all, we’ll email it to you at no cost with our FREE 7-Day Trial.

Part 1 | Part 2 | Part 3

This week we’ve discussed myriad benefits of pursuing preforeclosure deals. Basically, it’s a fantastic opportunity to crack into the real estate investment market.

Here are our final thoughts on what makes preforeclosures so desirable:

• Lenders prefer to liquidate a bad loan rather than take property back. Therefore, you can request that a lender discount what is owed on its payoff. This strategy, which can’t be done on a loan not in default, can create a large equity spread on a house that is totally “maxed out