Important Tips When Investing in Foreclosures

By: Robert Lam

If you decide to invest in foreclosure properties, it's important to have the right resources. In this article I'll outline three (3) essential resources you'll find invaluable in helping you find and buy promising foreclosure properties.

1. The Internet

You'll find the Internet to be an incredible time saver. All kinds of property investment resources are literally at your fingertips. From helpful information... To the names and locations of real estate agents... to educational resources... you'll find them all on the Net. In particular, you'll find the county recorders' sites and the various foreclosure listing sites invaluable. The county recorders list the notices of default issued by lenders to defaulting mortgagors. The foreclosure listing sites list the homes that are being foreclosed.

2. The Law

You certainly don't need to be a lawyer to invest in foreclosures... but a sound knowledge of the foreclosure laws of your state is essential. This area of property investment is heavily regulated - with lenders, home owners and investors all subject to particular rules and regulations governing their rights and responsibilities. Knowing what you can and can't do... What you need to do, by when... and what your rights and obligations are with regard to negotiating with home owners, bidding on a property at a foreclosure auction or trustee sale, and such matters as property liens and taxes are all things you need to be familiar with.

3. Your Team

Although it's about buying, selling and renting properties, property investment is very much a "people" business. You'll be dealing with all kinds of people, at all levels, throughout the foreclosure process. So too, if you assemble a crack team of people to HELP you, you'll do much better in terms of quickly identifying, valuing, buying, financing and monetizing a property foreclosure. Some of the people you might work on your team are your:

-- Property finder or "bird dog" - someone to spot foreclosures for you;
-- Buyer's agent - someone who is highly experienced in the area in which you're planning to invest, and can assist to value the property and negotiate terms with the vendor (whether it's the home owner or lender);
-- Financier - the person who will provide you with the financial wherewithal to invest in the property you want;
-- Property manager - the person who will manage your property (collect rent, organize repairs, etc) if you plan to rent out a given foreclosure home;
-- Tradespeople - skilled, efficient and cost-effective tradespeople to perform repairs and/or renovations; and
-- Seller's agent - someone who can get you the best price for the property if you decide to sell it.

Armed with the Internet, a knowledge of the law, and a reliable, high performance team, you'll be well placed to profit from your foreclosure investments. For even more essential information for your foreclosure investing, consult .

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