With an increasing number of foreclosures in all real estate markets, an abundant supply of bargains will soon be available for the shrewd shopper. So how do you find these bargains? I agree with most experts that it takes determination, research, and hard work to find the bargains. You may have to look at fifty or more potential properties to find the one bargain that will yield a substantial profit.

Is it worth it? Absolutely! Since foreclosures are cheaper to buy than other types of property, diligence will pay off in the long run. You can find foreclosures in the legal section of your local newspapers, by calling your local county clerk’s office for a list of lis pendens, or by searching the Internet for foreclosure listings with HUD, the VA, and other such web sites. Realtors are also a good source to find foreclosures and even pre-foreclosures. Developing good relationships with a few Realtors will be one of the important strategies you need to be successful in the world of foreclosure investing.

Just remember, however, that finding the property is only the first step. Once you find the property, how do you calculate the cost? You need to know all the costs, including those for repairs and loans, in addition to the purchase price to calculate the actual cost.

Even after you’ve made your initial assessment and calculated the cost, you have to determine if the property is most profitable to you as a short- or long-term investment. In other words, will you rent it out to create monthly cash flow? Or, will you fix it up and sell it for a onetime profit? Also, if you sell it for a onetime profit, will you take the profit only from the sale of the property or will you also create cash flow by providing owner financing to the buyer?