Finders Fees – An Unexploited Way to Make a Killing From Real Estate

Finders fees are probably the most underexploited way to make money from real estate foreclosures that exist in the current economy. Why? One main reason is likely the culprit: real estate investors are simply ignorant to the possibilities inherent in helping victims of foreclosure retrieve the equity they’ve lost to the government.

Everyone has seen the websites run by the state where you can kind your name in and see if you’ve got any forgotten bank accounts or stock dividends being held by the state unclaimed funds division. What almost never shows up on those websites are sums of money like tax and mortgage foreclosure overages. Why? Those funds take a while to make it to the state’s unclaimed funds department.

Since most finders fees are capped out by state law at 5-15%, the opportunity to be a specialized money finder seems less than alluring, since you’d have to be successful at collecting a lot of huge amounts to become wealthy. But since these funds often don’t make it to the state level for at the minimum 2 years, there’s a huge opportunity to make unlimited finders fees from those funds while they are nevertheless floating around outside the state level. During that time, they are largely ungoverned.

Also, unfortunately for many tax and mortgage delinquent owners, often state law dictates that their overage equity escheats – that is, lost permanently – to the government before it ever already makes it to the state level, where they’d have a prayer of stumbling upon it.

What does this average for you? It method that first, you are sorely needed as a money finder. People will lose their equity if someone doesn’t help them find it (as many times, they don’t already know they are entitled to it). It also method there’s a wealth of money to be made from finders fees in the 30-50% fee range. With the skyrocketing foreclosure rate, now more than ever, opportunity is present to both help people keep their equity out of the government’s hands, while at the same time fattening your own bank account to the tune of five figures a month.

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