Buying investment real estate

Last time, we talked about whether real estate is an investment. This time, we are going to talk about how to start. If after reading all of the posts here, you have read about setting goals, finding a mentor, and building steps to achieve your goals, then you should be ready and excited to start looking for investments.
When you first look to invest in real estate, it is not an investment platform that you can just go to a stockbroker to shop for this investment. Of course, you could always find a realtor that has a property for sale. Usually these are not the kind of properties that you are looking to start with, unless that particular realtor specializes in distressed properties, commercial properties, and/or investment properties. The next step for you is to look at different kinds of properties.
Some of the things that we look for when we are looking for a property to purchase is: high un-mowed grass, boarded-up windows, chipping peeling paint, old vehicles or personal possessions sitting in weeds, a tarp on the roof, etc. Usually, if there is a tarp on the roof, boarded-up windows, and other remedies to keep the house in some sort of secure, weather-tight position, the lender who is in the process of foreclosing on the property has sent someone out to try and protect their investment.
Another good source of leads for properties is in the courthouse. In the sheriff's' department and the tax departments are a good place to look. The sheriffs' department will have the list of lender foreclosed homes that are coming up in the near future. The tax department will have the homes in that county of people that have not paid their real estate taxes. When you look into either of these sources, make certain that you find out if there are any additional leins or encumbrances on the home(s) that you are intending to purchase before you get to the scheduled sales. Also, if you have found a source of capital, many times you need to have 10-20% down in certified funds. Even if you have not found capital to work with, it would be a wonderful experience for you to attend one of these sales just so you have additional knowledge.
I have been to any number of sales, and have not purchased anything from them, but have had a wonderful time just learning and meeting other investors there. My personal preference, is to wait until after the sale. In that way, usually the foreclosing lender will have "bought" the property back, and will have it put on the market, free of liens and encumbrances, and I can get a wonderful deal then. All of the homes that we have purchased, have been foreclosed upon already, and the lender was the seller. That does not mean that you won't be able to find wonderful deals at the sales, or before the property goes into foreclosure. You just need to look closely at all of the deals. Don't jump at the first house that you can find that you can afford.
Remember, one man's trash, is another man's treasure. If you do not have a vision for that house that you are looking for, cannot see potential, or just don't like it for whatever reason; MOVE ON. The "deal of a decade" happens every day! Really. The more properties that you look at, the more deals that you will see and learn to recognize. Not every deal is a good one.
If you have any questions about anything that we have spoken about today, send me a comment. I will be happy to answer them.