How Seasoned Real Estate Investors Research Homes in Foreclosure

Any reputable foreclosure resource will tell you what you need to do your research before buying foreclosed real estate. How can you research effectively and quickly to find the information you really need to know? Fortunately, you can use some of the same techniques millionaire investors use to find all the information you need to know about foreclosures.

Your first goal should be to talk to other investors and learn from other investors. Find out who in your area invests in foreclosures. Who has had much success with foreclosures? If these investors give talks, attend them. Try to get a mentorship with these investors or other successful foreclosure investors. Read books and articles written by successful investors or take classes with these professionals. Real estate investors who are already successful at foreclosures can teach you a lot about how to be successful. From these experts, you can learn how to structure great foreclosure deals, how to shop for the best foreclosures, and more. The most successful investors have mentors so they always learn more. You also should.

Once you’ve learned about the foreclosure process in general, you can start looking for specific foreclosed homes that you might be interested in buying. This is a good time to visit your local public library. Your local librarian can help you find a wealth of information about a specific community or household, including past tax records, a community’s criminal record, and much more. You can even gain insight into a home’s past that can help you make a great real estate deal. For example, what if you discover that a specific house is much older than you thought? The foreclosed property could qualify for historic status, and that can also help you get certain tax advantages. The library is a treasure trove of information and this is one resource you won’t want to overlook.

You will also want to start talking to people about your foreclosure. Call the police station and local insurance companies, for example. They will be able to tell you about crime rates for a specific area, as well as the insurance costs you can expect for a specific foreclosure home. This should be an important part of your research. If you know someone who lives near a foreclosed home you are considering buying, call that person and ask about the positives and negatives of a neighborhood. Meet a local neighborhood group to learn how to live in the community. Be sure to put on your walking shoes and walk around the neighborhood. If there is a community in which you are considering buying a home, take frequent walks around the area. Take walks at various times too: on weekends, on weekdays, in the evenings. How does the neighborhood look? How friendly is he? If you see someone working in your yard, stop to say hello. You never know: they can be full of information about the community.