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Do you have a strategy for Buying San Diego foreclosures and REO's? A good foreclosure Realtor can help, but first, you have to help yourself by knowing exactly what your goals are before buying San Diego foreclosures and REO's. Generally speaking, most people look at the real estate first. They should be looking at where they want to end up at five to seven years down the road. Keep reading to develop your own strategy for buying and selling San Diego foreclosures and REO's.

Once investment goals have been established, designing a good investment deal is like a work of art - it all comes down to inspiration. What stage of the foreclosure process is the investor inspired to work in? How much wealth will inspire success? How many properties in should be in a portfolio? How long until retirement? Bottom line: what it takes to be properly inspired is individual to each investor.

Inspiration Depends on Information

Once the goals are in place, true inspiration can flow from proper information. At this point it comes down to the real estate and being realistic. In other words, investors should take stock of ALL of their capital: human and financial, as well as their time and personality.

Then go look at the properties.  Look at those that have profit potential. You want an immediate profit. Only focus on deals where you have a motivated or flexible seller. You shouldn't care about the location, price or condition.

Locating and properly analyzing a specific property for its investment potential takes access to competent and reliable sources of up-to-date foreclosure information. Working with a foreclosure realtor, for example, an investor can dissect a property's investment potential upfront through the combination of the property details, lien and loan history and comparable sales.

You always make the profit when you buy it, not when you sell.

Although foreclosure Realtors have different styles for negotiating and closing a deal, all rely on similar mathematical formulas to help them determine whether the property in question will deliver that front end profit they're seeking.

In today's market, investors recommend building at least a 30 percent margin into a deal to be assured of ending up with some profit. For new investors, that margin should probably be even higher (maybe 65 percent) to allow for underestimated costs.

In other words, an investor should calculate the market value of the property after repairs are made, multiply that value by 70 percent and then deduct the estimated cost of rehab to determine the maximum amount to offer for the property. The margin is quickly eaten up in real estate commissions, holding costs, closing costs, insurance costs, property taxes and the investor's personal business overhead. The profit is what's left over after all those bills are paid.

Bottom Line: Let us help you find the right property, at the right price. After you factor in your own expenses, and stick to your plan and your budget......you will make money.

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