Often real estate investing uses foreclosure properties as a readily available source of lower than market value properties. While this is a great way to find those low cost properties, there are some potential pitfalls in investment including the amount of renovations or repairs needed, the location of the property and the ability to find a buyer quickly.

Real estate investing means more than just buying random properties. Investors must consider the amentias that the property has to offer, current and potential zoning changes, roads and transportation access as well as the types of developments that are planned for the surrounding area.

Flipping properties is a term that indicates the purchase of a house or property, fixing up or upgrading the property, and then the immediate resale of the property for profit. Remember that with flipped properties there will be taxes, costs of renovations, advertising and even closing costs to consider before you actually begin to make money.