I would agree with the previous posts. For a professional investor/contractor yes because they can get repairs and other work done quickly and efficiently. You really need to sit down with your lender and have substancial reserves to comfortably work through any issues that spring up. In the real estate world, risk should = reward, big risk should mean big reward but can mean big headaches. Most of the foreclosures I've seen lately the routine maintenance became a victim when the owner couldn't afford the home. Be very cautious and research everything you can to make the most informed decisions. Good luck with your endeavor.

As long as you are represented by an experienced and professional real estate agent, a competent attorney and a trusted very thorough home inspector, you can save significant cash on your investment. Many foreclosures are currently available through our company and through HUD registered brokers. Remember, many of these foreclosures were once on the traditional market and didn't sell, causing the lender to foreclose. The easiest place to gain profit in an investment is to buy low.

No no no no no.
If buying a foreclosure was such a guaranteed money maker with minimal risk, more people would be doing it, which would also cause forclosure prices to be closer to Market price anyway. As we can see this is not the case.

As an investor and a Realtor, I caution you on short sales and foreclosures. And...they are not always the best deals. I've always been one to close quickly and rehab/rent or flip the property ASAP. There are a lot of great deals on the market now.....by regular sellers. Also....to preserve capital....get the seller to carry a 5-10% second mortgage for you.....advantages...it does not show on your credit report and potentially gives you more buying power. Good luck!

First of all may I suggest to you "The Millionaire Real Estate Investor" by Gary Keller. This is a great book for investors and realtors alike.

Foreclosures are not always the best deals and they come with a lot of unanswered questions. Expect to make repairs including cosmetic improvements. You can be stung by liens placed on the property. My recommendation to you especially since you are starting your investing career is to contact a local agent that specializes in working with investors and foreclosures. The best deal could be a property that is listed which is not a foreclosure. Your agent will do their research and take you to the deals. They will not only be able to negotiate the best deal but they will be able to guide you with repairs and staging to sell the home for maximum dollars. If you are looking to rent the properties you buy your agent can help find you a renter.

I have seen many investors make HUGE mistakes that cost them a lot because they did not allow anyone to help them. Most successful investors use professionals to assist them. Do you have your team ready? A Realtor, a Lender, an Appraiser, A Contractor, Home Cleaners, Carpet Cleaners, An Accountant, and An Insurance Person or Company.