Foreclosures are always eye catchers to real estate investors. Foreclosure investing lets you buy properties at bargain basement prices. The time and money you invest in foreclosure properties will almost always have greater returns than normal real estate investing.

Given the work it takes to locate a foreclosure means that investors will be less likely to pursue them. If you’re willing to do the research, you’ll be able to find these below-market-price homes and face very little competition.

While there are several profits to be made from a foreclosure purchase, I want to chat about three ways to profit from foreclosure investing. You may decide to keep the property after you purchase it. Buying a foreclosure usually gives you a large instant equity that you can borrow against for future real estate investments. Or, you may choose to rent out the unit and provide yourself with a monthly income.

Another way to profit from foreclosure investing is to flip the foreclosure. Many foreclosures may need only a cosmetic makeover to really enhance their curb appeal. Then you can resell the property at full market value because you already bought low.