With foreclosures on the rise, particularly in economically distressed areas, real estate investors can scoop up properties at a bargain. You can dip in at any stage of the foreclosure or bankruptcy stage:

• Pre-Foreclosure: Approach the homeowners with a proposal prior to the foreclosure sale.

• Foreclosure Sale: You can bid at the foreclosure sale against other investors.

• Post-Foreclosure: Buy the property from the lender's REO (Real Estate Owned) department after the foreclosure sale.

• Bankruptcy: After the foreclosure sale, the owners still retain control of the property through the redemption period (typically 3 to 12 months in most states). The owners can file for bankruptcy to buy themselves additional time. As a real estate investor, you may be able to step in at this stage to acquire the property.

If you don't know what you're doing in the foreclosure arena, don't step into the ring. Losing money in foreclosures is a lot easier than making money. Do your homework before you lay down your cash.

Probing for Probate Properties

Death often leaves behind property that ends up in probate. You can find out about probate properties in any of the following ways:

• Contact a probate attorney

• Check for probate auction notices in local newspapers

• Contact estate auctioneers

• Network in the neighborhood

• Spotting a dontwanner in your neighborhood and contacting the owners

Discovering Deals in Divorce

Finding the real estate remains of a divorce settlement requires a moderate amount of research. Look into the following resources:

• Your local newspaper's divorce announcements

• Divorce lawyers

• Real estate agents

• Church members

• County courthouse (Divorce decrees are public records)

Going for Gold with Government-Seized Properties

Government authorities often take possession of a property because the previous owners paid for the property with ill-gotten gains or failed to pay their taxes. To find government-seized properties, contact the following agencies:

• State department of transportation

• State or county drug enforcement agency

• County sheriff's office

• IRS at this site

Buy It, Fix It, Sell It

To ensure a profit, you have to buy a property for the right price and terms, renovate it fast and within budget, and then sell it for a profit. This real estate investment strategy, commonly referred to as flipping houses, requires substantial know-how and labor. If you're ready to make a rewarding commitment, however, flipping houses is a great way to begin building your future fortune in real estate.