Has anyone here actually made a nice profit from foreclosures and preforclosures?

Question

If so, what sources would you guide a novice investor to, thanks for everything. If I got rich, I wouldn't do it greedily, I actually have plans to help others who are in need.

Answer 1

Be well advised that most of the profits in foreclosures are made by those selling programs on how to make profits in foreclosures. Becoming involved in buying and 'flipping' foreclosures is not a game for the inexperienced.

One must know the real estate market thoroughly and be aware of actual values of the properties involved. The fact that a property is a foreclosure does NOT mean that it can be purchased at below market values. As a real estate broker, I have guided several people through such purchases, and some have discovered that, by the time they have the property readied for resale, values have fallen to less than they have invested in said property.

Contrary to all the advertising you see, lenders do not sell for 'pennies on the dollar'. My real estate brokerage firm markets foreclosures for several national lenders, and these lenders want top dollar for the properties they own, and ARE willing to sit on them for six months or more until the correct offer appears.

Before you become involved, insure that you know exactly what you are buying and what you might gain from resale.

Answer 2

If you're not an expert in real estate you'd be a fool to try this.
Read "The Richest Man in Babylon." There's a whole chapter about this very thing. You don't put money into something unless you REALLY know what you are doing. Do you expect the banks to sell properties for a lot less than they are worth? If you can sell them for more they can too. Besides that prices are going down. Do what you know how to do.