Many people these days are looking for a new work at home opportunity and real estate investing could be just what they need to achieve their financial goals. Many people think real estate investing is only a rich man’s game and that it takes big bucks to play. The truth of the matter is that if you buy right it is nearly impossible to loose.

One of the secrets to real estate investing like any other business, is that if you work hard and do your research you will make money. You have to be willing to work harder than the other guy, but this often isn’t really that difficult when you consider how lazy many people out there are.

Getting your start in the real estate market is the hardest part of the game. There are definitely barriers to entry but with some hard work and determination you can overcome these barriers and make them a thing of the past.

My first suggestion is that you avoid becoming a jack of all trades in the real estate business. The success stories come from those individuals that specialized in one area and became experts. That said using the pre foreclosure market can be a great way to break into the real estate investing business. Here are a couple of reasons why the pre foreclosure market can be great place to start.

Everyone is motivated

No one wants the pre foreclosure, not even the bank that is trying to take possession. The homeowners probably just want out, and the neighbors don’t want a vacant house sitting there collecting weeds for the next 6 months. Foreclose cost everyone money. If you can offer a solution you can be a game changer.

As I already said, the bank doesn’t want the property

This is no secret, but why then do the foreclose? Simple, it cost them more to hang onto a nonepreforming loan than it does to go through the hassle of foreclosure. That said foreclosure still cost them a fortune. A single foreclosure can cost a bank tens of thousands of dollars and restrict their ability to loan out more money. Banks are not in the property management business and don’t want liabilities sitting on their balance sheets.

This is a specialized area of the market

Pre foreclosures represent a very important part of the real estate cycle. The area effectively the start, meaning that when you deal in this market you are dealing in the wholesale market. This means that you are dealing with investors. Investors are more savvy than retail buyers and are also more willing to buy property as is. This is a niche that you can exploit.

Avoid the competition

Ever heard of buying a foreclosure at auction? I am sure you have and so has everyone else. That is why buying at an auction is possibly the worst way to buy. IN some situations you may have to pay for the entire house on the spot without actually looking inside. Getting the good deals before they even go to auction will ensure that you don’t have to deal with this level of competition eating into your profits.

Real estate investing can be a lucrative business, the hardest part is getting started.

Granted there were a lot of people hurt in the last real estate crash but this does not mean real estate is not a good investment.  Long term it is very hard to beat the returns on property if you are investing in places which will give you a return on a monthly basis.  By this I mean rental or leased properties.  If you are buying raw land and waiting for it to appreciate to a point where you can make some money you are better off putting your cash in a bank.  People who make money real estate investing buy properties that will pay for themselves and then when the property appreciates it is like getting free money.

One area really hit hard by the recent bubble was Florida.  This area, along with California, Nevada, and Arizona was drastically overbuilt.  There was no way all the homes and condos were going to be sold as fast as the developers claimed.  So the developers lost their shirts and now the people who really understand how the market works are swooping in and buying great places for a fraction of the building cost.

In particular, Miami Beach condo deals are working out very well for people who stayed out of the market until there was “blood in the streets” and then they started to pick up distressed properties left and right.  The fact is people still want to live in these areas like Miami Beach.  So if you can buy a condo for a more realistic price than they have been offered for in the last few years, and you can rent it out for a year or two, then as properties appreciate again, you can sell it for a profit.  The old adage “buy low and sell high,” is at work here for people who are in the know.  Most experts agree we are at or near the bottom for residential real estate so now is a time to start looking around for deals.