| The number of real estate foreclosures rose | | | | By signing up with the appropriate foreclosure sites |
| dramatically in 2006, and all indications are that in | | | | and having the right contacts, you can get lists of |
| 2007, that number will continue to rise. This presents | | | | foreclosed properties, then hunt for potential |
| some great opportunities for people interested in | | | | moneymakers. With this type of foreclosure |
| foreclosure investing. While late-night infomercials and | | | | investing, people often look for run-down homes that |
| real estate gurus might try to convince you that | | | | are discounted way beyond what they should be. An |
| through foreclosure investing, you can buy properties | | | | experienced investor will know what to look for, then |
| for pennies on the dollar, the truth is that usually, you | | | | buy these homes, fix them up cosmetically, and sell |
| will be only get a slight discount, if any. The reason | | | | them for a huge profit. |
| for this is that often, many people, including real | | | | While there are other ways to profit from |
| estate agents, have access to lists with foreclosed | | | | foreclosure investing, such as purchasing |
| properties. | | | | non-performing mortgage notes and then foreclosing |
| That said, savvy investors can still make good | | | | on the property, the two methods above are some |
| money with foreclosure investing. Here are some | | | | of the most common and popular ways that people |
| tactics that are commonly used. | | | | take advantage of foreclosure investing opportunities. |
| 1. Approaching sellers before the actual foreclosure | | | | Foreclosure investing is not rocket science, but you |
| This can require some work, but is probably the | | | | will need to know what you are doing in order to |
| most lucrative way to profit from foreclosure | | | | avoid problems. One trap that beginners in |
| investing. By going to the local courthouse, you can | | | | foreclosure investing often fall into is ending up with a |
| learn who has defaulted on their loans. Then, you can | | | | property that has huge problems that are not known |
| approach people who are about to be foreclosed, | | | | at the time of purchase. This happens because many |
| and try working out a deal where you bail them out | | | | foreclosed properties are sold "as is" at auctions |
| by buying their property at a discount and paying off | | | | where you do not have the luxury of having an |
| their loans. Why would they sell you their homes at a | | | | inspection done. |
| huge discount? Because if they don't, they face | | | | The best way to avoid potential problems with |
| foreclosure and stand to lose a lot more. You will | | | | foreclosure investing is to put some time and money |
| need some patience to work at this stage since you | | | | into a foreclosure investing program or course, read |
| will be dealing with financially desperate people. | | | | many books, and join foreclosure websites that list |
| 2. Buy run-down foreclosed properties at big | | | | foreclosed properties and provide useful information |
| discounts, fix, and sell. | | | | on each one. |