Real Estate Investor? How to Locate Potential Properties For Real Estate Investment

Real estate is probably the most reliable and risk-free path to wealth for most of us but a very important part of investing is knowing how to locate the best properties.  Knowing this can help you have a successful career in real estate investment.

The natural choice for investment properties is close to home unless you live in a depressed area.  The only time to invest in a depressed area would be when you have information that indicates the area will be turning around soon.  In that case, that may be the best choice for you.

Why is the best choice close to home?  When you invest close to where you live, it makes it much easier for you to check on your properties, your tenants, the status of renovations, and to develop relationships with the realtors and contractors who can help you.

You must also consider your financial situation. 

  • Can you afford to hire a management company to collect rents and maintain your investment?  If you will have to do this yourself, the closer to home the better. 
  • Can you afford to fly out and check your properties?  If not, the closer to home the better. 
  • Would driving an hour each way to service each property take too large a chunk of of your time and gas?  If the answer is yes, the closer to home the better.

Right now, here is the question many people are asking:  Is buying a foreclosed property a good potential investment?

Foreclosures may or may not always mean a bargain.  There are, however, bargains out there and in many cases they are foreclosures.  You can find foreclosed properties through a realtor who specializes in them or through a local foreclosure data bank either online or printed.  Some banks advertise their foreclosures and some list them with realtors.