If you are able to take over their property loan, it is a big help to them, and in return for being rescued from a sea of debt, sellers will often accept terms that are very attractive to buyers.

The neighbors, for example, will have great information on the property, including how it was treated by the previous owner, perhaps the owner’s motivations for selling and other information that you can then use to determine whether the home is right for you.

Some key things to ask about whether they concern a single home or an entire community are the level of crime, the quality of local schools, the fluctuations of local weather and perhaps the big events held in the area.

Ask yourself; do I have other income or savings that I could tap into in case my rental properties become vacant or need major repairs.

By using your own labor, you can get paid when you sell the home upon completion, or, you can live in the home, or possibly rent it out, then sell it.

Buying at the foreclosure auction is not for everyone, especially beginners with limited funds, because you need cash, and lots of it, to buy properties at auction.

Don’t bid what you think will be the high bid, rather bid what you want to pay.

Buying foreclosures is one of the greatest wealth building opportunities of our generation.

Banks and mortgage lenders have become much more willing to negotiate and accept lower prices for their REO properties — laying the groundwork for a “perfect investment storm” for savvy investors.

With individual ownership, the profits and liabilities flow directly to you as an individual but you are also exposed to the greatest risk.