SterlingResidential.com | Buying & Selling Residential Properties in Texas | Houses for Rent Houston Area | Humble Atascocita Kingwood & Spring Texas Realtors | Sterling Residential®, Realtors® | Real Estate Broker: Foreclosure investing a competitive, niche market

Foreclosure investment is a competitive niche market requiring specialized real estate knowledge in legal, market, management, and tax matters — a steep learning curve for the new investor. Competing with experienced foreclosure prospectors requires diligent study and practice, but for investors willing commit the time and resources, it represents a challenging and profitable enterprise.

If you’re conscientious, work in a methodical manner, and have the time and resources to employ in your foreclosure business, you can assemble a profitable investment portfolio — because it’s investors who work smartest, hardest, and longest who profit most.

Determining whether foreclosure investing is for you will require some time and effort to learn the basics. As foreclosures have increased, so has investor interest, crowding an already populated playing field. You’ve got to answer some important questions about your goals and motivation to compete in a market with many players.

Questions to consider when evaluating foreclosure investment

• Do you prefer active versus passive investments?
• Do you have the financial resources to buy and manage properties?
• Can you devote adequate time to evaluate, purchase and manage your investment?
• Do you have the time, patience, and resources to work foreclosures over the long term?
• Are you comfortable working in a competitive environment with like-minded investors?
• Can you make purchase decisions with limited information?
• Are you comfortable with numbers and performing financial evaluations?
• Will you be comfortable working with distressed sellers or problem tenants?
• Are you knowledgeable about local market property values?
• What professional resources or affiliations can you rely upon for help?
• Do you have an investment and exit strategy?
• What property types and territories will you target?
• Will you manage your own investment or employ a professional property manager?
• Do you have an understanding of property-related maintenance and repair expenses?
• Are you handy with tools or will you hire contractors for maintenance and repairs?

Investing some time and money answering these questions is a smart way to start. Search Google and you’ll find many national online resources including foreclosurelistings.com, realtytrac.com, and foreclosuredata.com. You’ll also find a large selection of books at Amazon, far too many to recount and review here, but some of the titles I’ve read are linked below. For my money, the best introduction is a foreclosure workshop — preferably a local class focused on the foreclosure process in your city or state.

For Texas investors, a good foreclosure workshop is offered by Roddy Seminars in Addison, Texas. Additionally, they offer other investment workshops for new investors and investor assistance through their affiliated company, flsonline.com. Their “How to Buy Foreclosure Properties” workshop provides an overview of the business and legal aspects of foreclosure investing. Attending a recent workshop, I found the presentation informative and organized, providing enough information to determine whether foreclosure investing warranted further consideration.

John Huval, Broker Realtor® GRI e-Pro Copyright© 2007