7 Tips for Foreclosure Property Investing

So many people ask me about foreclosures, if they're a smart investment, how they find "good deals", how to invest in them. I thought this article might be of interest with regards to those questions.

Daily Real Estate News June 29, 2007

With foreclosures rising nationwide, prices falling, and inventories swelling to historic levels, investors with a discerning eye and knowledge of the foreclosure process can build a profitable portfolio of distressed properties, says James Saccacio, CEO of RealtyTrac, which tracks foreclosure data.

Saccacio offers this basic advice to foreclosure investors:

Know your market. The most important tool in your real estate investing toolbox is knowledge of the area where you plan to invest.

Develop an appropriate investment strategy. Find an investment strategy that will work in your market, and then do what it takes to implement that strategy.

Make the foreclosure process work for you. Decide what foreclosure buying technique works best with your investment strategy and your strengths as a person.

Scrutinize each deal. Many real estate investors wrongly assume that if a home is in foreclosure it's a good deal.

Rely on a trustworthy team. You'll be in over your head if you try to do all the work involved in foreclosure investing on your own.

Network with banks and lenders. In a slow real estate market, banks and other lenders are saddled with larger inventories of foreclosed properties and will be more motivated to sell those properties at bargain prices.

Act quickly, but don't be in a hurry. A slow real estate market gives you the upper hand as a buyer, but you'll still need to act quickly to get the best deals.

— REALTOR® Magazine Online