Real Estate Foreclosure: Getting Wet With Your First Deal
After sitting on the fence for a while you've decided to jump on board and either have been trying to make foreclosure investing work for you or you're still on the fence and wading in the pool trying to get a feel for the process before committing yourself fully.
You feel inundated by the seemingly endless supply of strategies and jargon involved in foreclosure investing and in real estate in general.
One of the number one factors in determining your success in foreclosures and in business in general is in the market research. Let me put it this way: you have to be able to spot and examine whether a deal is a deal or not. Now I can probably ramble for hours on all the different nuances, strategies, opinions, schools of thought, gurus, books, etc.
But in the end market research is something that it highly tied into your own experience. Try to get some good books on real estate market research it as much as achievable to a point (without overanalyzing) get a handle on it so that you may get involved and practice and learn and eventually you will become a master deal analyzer. It's like riding a bike.
So that was one factor of the foreclosure investment approach. Now the second big aspect of it is in how to finance the deal in question. Are you going to pay for it out of your own pocket or are you going to try to find wealthy investors and work out a deal with them involving coownership, etc.
In this is an incredible topic in itself which is sometimes labeled as a creative financing. Alternately the funds has to come from somewhere either from yourself or from others.
And eventually putting the circle in full-bloom, you'll need to figure out your primary goal. In other words, how are you going to profit from this property now that you have the rights to it?
Of course it's impractical to teach you everything about foreclosure or investment in one little article but if you were to study those three major components: market research, creative financing, and exit strategy. Then you will be well on your way to having at least having a guideline to learn and study from and construct upon as you increase you're real estate expertise.
There's no one right way to do things, just get a good system and begin applying it. Within a few months or a years time (depending on your determination), you will probably surprise even yourself with how masterful you've become with real estate foreclosure investing.
About the Author: Government foreclosures provide a strong alternative source of potential foreclosure leads for you to profit from.