Real Estate Foreclosure: Getting Wet With Your First Deal

Real Estate Foreclosure: Getting Wet With Your First Deal

So you've taken the plunge and either have been trying to make foreclosure investing work for you or your still on the fence and wading in the pool trying to get a feel for the waters as it were.

You do not feel overwhelmed by the seemingly endlessly supply of strategies and terminology involved in foreclosure investing and in real estate in general.

One of the primary 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 analyze 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 extremely 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 possible 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 component of the foreclosure investment process. Now 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 co-owner, etc.

In this is a huge topic in itself which is sometimes labeled as a creative financing. Alternately the money has come from somewhere either from yourself or from others.

And finally putting the circle in full-bloom, you'll need to figure out your exit strategy. In other words, how are you going to profit from this property now that you have the rights to it?

Of course it's impossible 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 build upon as you increase you're real estate knowledge.