You must know your local real-estate market to determine the value of any foreclosed property. Don't trust the opinions of anyone else about the value of the property. Conduct your own market research of any foreclosure you are considering purchasing. By comparing your potential foreclosure deal to recent real-estate deals, you can begin to determine values. This is basic market research. It is not that difficult to learn or do.

As an active real-estate investor, you must watch the properties that have already sold in the neighborhoods where you plan to invest. In many areas the real-estate sections of Sunday newspapers report the recently completed real-estate transactions. Real-estate agents also have this information readily available through their local Multiple Listing Service. The agent can search closed transactions quickly and produce an updated report.

Visit open houses and keep yourself informed of what properties are being purchased for in your farm area.