Learn to Operate Outside your Local Foreclosure Market

By shaye • June 25th, 2010

Working your local foreclosure market can be tough, especially when you’re competing with literally hundreds of other people just for one property. On top of that, potential investors are covering every phase of the foreclosure process hoping to a buy a property for pennies on the dollar. But interestingly, there are other cities where foreclosures are being unloaded because the banks can’t carry them anymore!

One thing I notice as a real estate investor is that most investors tend to do deals in their local marketplace – in the areas where they live. The problem with that strategy is that not everyone tends to live in a place that is best suited for foreclosure investing or is the most optimal foreclosure marketplace. The honest truth is that while just about every place has foreclosures, not all foreclosures will be killer deals. When new investors don’t see the results they originally hoped for, they’ll give up on their dreams thinking that investing doesn’t work!

The problem is not that investing doesn’t work, but that the marketplace in which the investor lives is not the best possible place to make money with foreclosures. In fact, not only does a real estate investor have to find a deal that makes sense numbers wise, but part of that deal includes knowing what your exit strategy will be.

Let me give you a better example of what I mean. Let’s say you have a potential deal and your intention is to fix it up and rent it out. One thing you might want to ask yourself is, “How strong are rents in the neighborhood where that deal is located?” If the rental market isn’t strong, you might consider another exit strategy.

There are many market areas where foreclosures are booming. The key is to find out where these marketplaces are and capitalize on what’s already going on in that particular area. There are actually several places where the market is hot and to give you a taste of where these markets are, I’ll just mention three here for you. They are Atlanta, Georgia; Denver, Colorado; and Houston, Texas.

In order to make investing outside your local market area work for you, you’ll have to learn to do your research virtually online. One of the great things you’ll notice is that a lot of information is already available online as public records. Here’s a list of a few of the tools and resources I normally use in my Internet research system:

*County website

*City website

*Real property tax records

*Tax bill search

*Planning & development

*Police department

*Fire department

*City data

*Tax assessor’s office

*Chamber of commerce

I also check out a couple of online real estate investor clubs and see what they have to say about these areas. I will also look for local newspapers and other websites that have general city information.

Once you start doing the research in these areas, the research will become easier to do. You’ll find that you’ll be able to quickly analyze a property because you’re already familiar with a particular area just as if you lived there!

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foreclosures! This is your opportunity to discover the 7 golden foreclosure

marketplaces, where banks are unloading foreclosures for pennies on the dollar.

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