Cleo Katz is the author of “Secrets to Foreclosure Fortunes” a 220 page guide on buying foreclosures. As the son of a real estate investor I can tell you the more you know about real estate before you jump into it the better. Cleo has a very down to earth writing style and for $24.95 the information is well worth considering. Buying foreclosures can be profitable, but also risky. There’s problems you’ll run into that you don’t when buying other types of properties like if the home is still occupied you often can’t get in to see it before buying, and eviction can be an ugly process to get the previous owner out. Also some previous owners completely loot a house before being foreced out, you might buy end up with a “gut job” devoid of appliances, furnishings, or anything else of value.

There’s a lot of competition in this field, but good deals can be found. I would recommend anyone considering this to have money to invest plus a line of credit in reserve for unexpected problems or costs when buying a home just by exterior inspection. Finding good contractors and an experienced home inspector ahead of time is also a must, preparation is key for this kind of investment. Many are lured by flipping homes for big profits, but you can also lose money doing this so be prepared for it, not every project is going to make money.

Her book offers a lot of information that you absolutely don’t want to learn the hard way. You’ll need some knowledge of construction costs and home values, also knowing the laws or access to an attorney, and the financial legs to renovate and hold on to a home that’s slow to sell.

With the recent explosion of foreclosures this can be a good time to do it, but only if you’re prepared. If you’re brand new to the idea I would set aside a year to learn the business, buy books like these, secure credit lines, and check out who’s really good when it comes to general contractors and home inspectors in the area. Cleo has been doing this for 29 years and I’ve reviewed several people touting “2 years of investing experience” trying to sell a book or subscription about investing. Sorry but experience and track records counts when you’re out to learn to do this type of business.

In a nutshell, if you’re in a hurry, if you don’t have a substantial amount of money to invest and excellent credit, there’s other businesses that would be more suitable. If you’re well prepared and determined to learn it, her book is an excellent choice to get started.