| When it comes to real estate investing, making | | | | completing your purchase during each of these |
| money off of foreclosed homes is a highly specialized | | | | stages, so you might find that you prefer to close |
| area that can become aggressive as well. This is | | | | the deal at a particular stage. This is entirely up to |
| because investing in foreclosed real estate is a | | | | your personal preference. |
| specific market and those that are involved in this | | | | During the pre-foreclosure stage, the homeowner has |
| form of investment tend to be highly educated when | | | | received a certified letter stating that the home will |
| it comes to making money in this manner. Therefore, | | | | be foreclosed upon if payments are not made |
| before you get involved in real estate investment, it | | | | current by a certain date. You can approach a real |
| is important that you become as educated as | | | | estate owner at this time and offer to purchase the |
| possible about buying and selling this type of real | | | | property before the foreclosure occurs. There is little |
| estate for the most profit. | | | | risk involved with purchasing property during this |
| Understanding Foreclosure | | | | stage and you can also enjoy the satisfaction of |
| When many people think about foreclosed properties, | | | | helping someone get out of a bind, though you need |
| they envision homes that are falling apart or that are | | | | to make sure there are no judgments or liens on the |
| infested with termites or covered in mold. The reality | | | | property before you finalize the deal. |
| is that foreclosed homes can be mansions or pieces | | | | During the auction stage, the property has been put |
| of commercial property that are worth millions of | | | | up for auction or put up for what is referred to as a |
| dollars as well. Remember, properties are not | | | | trustee sale. This step occurs when the owner fails |
| necessarily foreclosed upon because they are | | | | to bring the payments up to date in accordance with |
| condemned or because they were not properly | | | | what was stated in the letter that was received in |
| cared for. Rather, the previous owner simply failed to | | | | the previous stage. During this stage, you can |
| make payments on the property. When this happens, | | | | purchase the property by paying the lender so it |
| the lender takes the property back and sells it in an | | | | does not have to take the property back. As a |
| attempt to regain the money that has been invested | | | | result, you can often receive a discounted price. To |
| into that particular piece of real estate. | | | | buy the real estate at this time, however you will |
| Choosing Your Niche | | | | need to have the cash needed for the purchase. You |
| When you decide to become involved in real estate | | | | also have to purchase the property "as is," which can |
| investment by specializing in foreclosed properties, | | | | be a risk if there are problems with the property. |
| you will need to first determine your niche. In other | | | | If no one purchases the property at auction, the |
| words, you should start off by targeting one type of | | | | lender had to buy it back. It is at this point that it is |
| property. Perhaps you will focus on "fixer uppers" | | | | considered Real Estate Owned. At this stage, the |
| that you will repair and then sell. Or, maybe you will | | | | lender may attempt to make a profit from the |
| specialize on commercial properties. | | | | property. Nonetheless, you can typically get a good |
| Whatever you decide to specialize in, the chances | | | | discount at this stage. In addition, waiting until this |
| are that you will have plenty of properties to select | | | | stage provides you with more time to do research |
| from. In fact, the number of foreclosure properties | | | | on the property ahead of time. |
| available each year in the United States is topping half | | | | Real estate investment can be an excellent way to |
| a million and those numbers continue to grow. | | | | make extra money and to plan for your future. At |
| Picking the Right Stage of Foreclosure | | | | the same time, you need to take the time to learn |
| As you explore the possibility of purchasing | | | | about this type of business and to understand the |
| foreclosed real estate, you will need to learn more | | | | pros and cons of investing at the various stages in |
| about the three major stages of foreclosure. These | | | | order to make sure you minimize your risks and |
| stages are pre-foreclosure, auction/trustee sale, and | | | | maximize your profits. |
| real estate owned. There are pros and cons to | | | | |