A few years ago I was becoming more aware of the opportunity to buy these foreclosed homes very cheap, and the pickings are everywhere! So I started looking for the how to manual for beginners, but what I found was a maze of information and Guru's that teach their system of how to do it.
Let me try to break down a few main points that I have learned after a few years now of learning and 50k invested in my education.
Decide how much you can invest no matter how good of a deal Is this an investment to flip or keep What skills do you have, construction, real estate, etc Time frame of purchase There are several ways to buy these homes at huge discounts, first is to have cash in hand and be able to buy instantly, this is the best way to cease a deal.
Second would be ROI or bank owned properties.
You can easily get to these by approaching the banks directly and asking for a list of their ROI's.
The third way is I think one of the best ways but requires a lot more work on your part.
It goes like this, go down to the local title company and get on their list for homes in foreclosure, they will email weekly a list of homes in trouble.
You can pick from these the homes you're interested in and then go knock on their door.
That's right just knock on the door, tell them you're interested in the home and noticed it was on the NOD list, notice of default.
Tell them what you're willing to give them and you just might get a screaming deal.
You can get all the details on how much is owed on the home from the cities record department and know what you're talking about when you approach them, you'll be amazed how people will see you as a super hero there to save their credit and help them out.
Then of course there is the home that is in foreclosure because of a tax lien, this is another great way to get a great deal, same situation you just need to be able to pay off back taxes and the balance of the mortgage which can be negotiated with a short sale offer and you're in! It's happening everyday all around you, in my little town the streets are lined with great deals, it's amazing and if you can tap into the opportunity then you're going to be years ahead.
You can find more information on short sales, ROI, tax auctions, and that type of thing here [http://yesgood.
Good luck and happy buying.