Q: Do I need to be a repair expert in order to buy foreclosures?

A: While it's not required, it can be very useful at times. There are various reasons for this, but the main ones boil down to the fact that you'll be able to tell if the value of the property is high enough compared to the price, to make a good enough profit. It'll also save you the money you'd otherwise pay a professional to check these things for you.

Q: If this is such a lucrative business, why isn't everyone doing it?

A: While the profits can be quite high with the right moves, the risk is also quite considerable in most cases. Some banks will refuse to give you a loan for the house, and there may also be a lot of side issues to deal with, like taxes, the rest of the deed to the loaner, evictions of current residents, etc. Generally, if you don't have a good business sense, and know what you're doing, you may end up hurting yourself a lot financially.

Q: Is it a good investment to buy foreclosures recently?

A: The market has been suffering somewhat of a decline for the past few years, and it's likely to continue in this manner for at least a short period of time. It can be profitable to buy a foreclosure right now, but it's not guaranteed that you'll make as much as you'd be capable of a few years later. It's probably best to save your money until the market straightens up a bit, which should be really soon.

Q: Is it really that lucrative to buy foreclosures and resell them?

A: Yes, it's a great way to make money, and it doesn't take a lot of effort. It's also beneficial to other people as well. The best part is, you don't even need funds to get started, you can do just fine by earning your first funds through the business itself. Foreclosure reselling is a fantastic venture, but be prepared to invest some time in it, at least in the beginning, if you want to make a stable profit off of it afterwards.

Q: How good does my credit need to be in order to buy a foreclosure?

A: It depends on what purpose you're buying the home for. If you're buying it for yourself, you can have a score of 570 and upwards, where it changes based on your loan and other details. If it's for investment purposes, you can get it with a score under 680, and that one shouldn't be too hard to acquire.