Top 10 Foreclosure Investing Tips by Jeff Adams

With the steady improvement in the economy, US property prices have been increasing as well. The good news is that banks still have a huge stock of foreclosed homes that they are trying to sell. For investors, this is a cheap way to find good homes. New homes are not yet available on a large scale as the construction industry has yet to recover from the 2009 recession. The only available, low budget homes are foreclosed homes. Investors can buy at below-market rates, renovate the homes, and rent or flip these properties for a neat profit.

So Easy?

Yes, the process is easy says Jeff Adams, the #1 real estate trainer, but there are a few industry secrets that no one is going to share. Before you step into the real estate investment market, here are a few things you should know:

  1. Find an experienced local agent – Local realtors know their community well. They know properties that will come up for sale, properties that are in pre-foreclosure, etc. and this will put you ahead of anyone else in the area.
  1. Avoid bidding wars – Most real estate buyers advertise their properties at well below-market rate to pull in buyers. Once the buyers are invested in the purchase, they start a bidding war and this hikes the price up. Prevent this by planning a budget and sticking to it.
  1. Hire an experienced property manager – As an investor, you won’t have time to renovate and rent out your property. Finding a good property manager will mean that your property is maintained, bills are paid, repairs are done and all other complaints are managed by the management company.
  1. Get your finances ready – Before you start investing, you have to pre-approve your loan. However, you should know that obtaining financing for these properties is very different. Higher down payments and above-market interest rates are common.
  1. Keep careful records – Buying and selling properties will catch the interest of the IRS. Make sure your documents and financial records are in perfect condition.
  1. Property condition – Most buyers do tend to underestimate the condition of foreclosed homes. Even new homes may have hidden issues. Before you buy a property, hire a property inspector to check the house over from top to bottom.
  1. Get a general contractor as a partner – Having a general contractor as a partner can really save you a lot of money. They can act as unofficial property inspectors and renovate the property fast and cheap.
  1. Determine fair market value – Yes, a local realtor is helpful but you have to do your research. Make sure you check the local market value of a home, its condition, repairs required, reputation, etc. before you invest in the property.
  1. Pre-Foreclosures – Look for properties in pre-foreclosure as you can get the property at a lower than market rate.
  2. Finally, proceed with caution – Buying and selling properties is a huge rush but always use restraint. You are investing money in a property that should bring in a profit.


Make sure you do your research before spending a single penny, says Jeff Adams.

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