There are many myths when it comes to foreclosures and foreclosure investing. One is that foreclosure investing is easy money and it is often seen as a get-rich-quick scheme. Another myth is at the opposite end of the spectrum. This myth says that you can’t make any money with foreclosures. Both of these statements, of course, are false.

However, these myths will continue to surface as foreclosure replaces the housing bubble as the next hot real estate topic. Fraud also comes into the limelight when foreclosures increase as scam artists use some of the techniques of legitimate investors to make a quick buck.

The Los Angeles Times looked at one example of foreclosure fraud last month in an article titled “Foreclosure Fraud Finds a Home.” This article looked at one family who had been defrauded back in 2004 and were still living with the possibility of losing their home two years later. Media attention like this makes it critical for the legitimate foreclosure investor to stay current with laws and investing strategies and separate themselves from the scam artists.

Getting back to the myth of easy money and the get-rich-quick scheme of investing, an educated investor learns quickly to recognize these myths and schemes and moves on to the business at hand. You have to invest the time and money into learning the strategies necessary to turn your foreclosure business into a long-term profitable one.

We’ve previously discussed the definition of foreclosures, why they are currently becoming a hot investment opportunity, and how to find them. This is only the tip of the iceberg. Even after you’ve shopped, found your property, calculated your cost, and estimated your potential profit, you still have to figure out the financing and inspect both the physical property and the title to the property.

These steps take knowledge and knowledge comes with continuing education. So how do you make a lot of money in foreclosures? You have to invest in our own education, learn the strategies, and then take action on what you’ve learned.