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.

Published: October 27, 2006

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Ralph R. Roberts, CRS, GRI is an award-winning and internationally recognized real estate agent, author, coach, and speaker. Throughout his career, Ralph has proven his commitment to helping other real estate and sales professionals build upon their past and present success, grow and expand their businesses, and provide a rich and rewarding future for themselves, their customers, their employees, and their families. As president and CEO of Ralph Roberts Realty, Ralph has personally helped thousands of consumers realize their dream of homeownership. While selling over 10,000 homes (and buying and selling over 3,000 investment properties) throughout his 30-year career, Ralph has made the time to mentor and coach hundreds of professionals in real estate, sales, and a host of other fields. Ralph is a recognized authority on Real Estate and Mortgage Fraud; Residential Real Estate; Personal Salesmanship; Sales Force and Office Management, Motivation, Design, and Team Building; and Foreclosure Self-Defense and Loan Modification, fields in which he has demonstrated his commitment to preserving the American Dream of Homeownership. Ralph's numerous websites, blogs, seminars, and speaking engagements engage, entertain, and educate both consumers and professionals. Ralph is also an accomplished author with several successful titles to his credit, including: Power Teams: The Complete Guide to Building and Managing a Winning Real Estate Agent Team Financing Real Estate Investments For Dummies (John Wiley & Sons) Mortgage Myths: 77 Secrets That Will Save You Thousands on Home Financing (John Wiley & Sons) Foreclosure Self-Defense For Dummies (John Wiley & Sons) Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership (Kaplan) Foreclosure Investing For Dummies (John Wiley & Sons) Foreclosure Myths: 77 Secrets to Saving Thousands on Distressed Properties (John Wiley & Sons) Advanced Selling For Dummies (John Wiley & Sons) Flipping Houses For Dummies 52 Weeks of Sales Success (John Wiley & Sons) Walk Like a Giant, Sell Like a Madman (John Wiley & Sons) Cross-Cultural Selling For Dummies (John Wiley & Sons) To learn more about Ralph, visit AboutRalph.com, check out his daily insights on real estate and mortgage fraud prevention at FlippingFrenzy.com, or visit his latest blog dedicated to helping distressed homeowners fight foreclosure, KeepMyHouse.com. You can reach Ralph at or by calling (586) 751-0000.