Newspapers
The most obvious and first place to commence your search for foreclosure properties is the local newspapers. Most classified sections categorize real-estate advertisements as real estate for sale, for rent, and investment properties.
Pick up the real-estate magazines at the local grocery store or convenience store. Most communities have several of these types of publications. Some also have For Sale By Owner (FSBO) publications. Don't limit your search of properties to the advertisements of just one newspaper. Look for advertised properties everywhere.
Pre-foreclosure Versus Foreclosure Properties
As a real-estate investor, there are two types of foreclosure properties you are searching for and attempting to locate: foreclosure properties and pre-foreclosure properties.
So far you have been learning about foreclosure properties. These are properties that have been or are in the process of becoming foreclosed. They are easy to find, primarily through the public notice required by each state's law. You can find these properties easily by watching the legal notices.
Finding both types of foreclosure properties is crucial to the success of your real-estate investing business. Without both pre-foreclosure and foreclosure properties to purchase, you have no method of making income.
Pre-foreclosure properties are not as easy to locate. No one advertises a pre-foreclosure property as such. The owner of a property about to enter foreclosure doesn't announce to the world that the property is for sale because it's about to be foreclosed. However, you can locate pre-foreclosure properties often by inquiring about properties advertised for sale. Some key words in ads might indicate the seller is in financial difficulty. Some examples are:
Motivated seller
Price reduced
Bring offers
Owner says sell now
FSBO — must sell
Take over payments
In pre-foreclosure properties, you will be most successful if you can get to the property owner first
Remember, keep reading the real-estate advertisements. Don't stop after just a few days or weeks. As an active real-estate investor you must constantly be looking for properties advertised for sale.
