Buying Foreclosure Properties

The process for buying pre-foreclosure properties is as follows:

1. Develop an investment system
2. Find properties
3. Confirm pre-foreclosure status
4. Analyze bargain potential
5. Arrange finance
6. Contact the owner in default
7. Negotiate a purchase agreement
8. Close the deal

Investment System

Investing in pre-foreclosures is a business, and a good business always works to a system. Develop a system to:

1. keep track of properties that interest you
2. analysis worksheets to determine the bargain potential
3. sales tracking system to track contact and sales process
4. filing system to maintain all property records
5. accounting system to manage finances and determine revenue and profits

Some online foreclosure data services allow you to save properties to an online preferred listing folder or download properties into a spreadsheet.

NEXT: Finding Pre-Foreclosure Properties