Obtain foreclosure information

Before you can invest in bank foreclosures, you need to know what properties have been foreclosed on. To find this information you have two options, visit your local city hall for a listing of bank foreclosures or subscribe to a foreclosure listing service.

I recommend: Foreclosure listings and Foreclosure Data both offer listing services for foreclosure and pre-foreclosure listings.

Assign value to your targeted bank-owned property

After identifying potential bank foreclosures to invest in, your next step is to evaluate the home and determine what it is worth now and what it could be worth with a little work.

I recommend: The Quicken Home Value Calculator and the Yahoo Home Value Calculator can be used to estimate the potential value of a home based on its current condition and its anticipated condition.

Amortize your financing for bank foreclosed homes

In order to buy a bank foreclosure you will need some sort of financing ready to go on the day of the auction. To help you determine how much you can afford to invest, amortize possible purchase prices.

I recommend: HSH's Amortization Calculator and Bankrate's Amortization Calculator are both easy to use.

Create a budget for preparing the investment property for sale

The key to making a profit in this industry is the budget. At the start of your project create a budget that makes sense for the project and stick to it.

I recommend: These tools are great for project budgeting: Cost Estimator and Quick Calculators.

Sell your bank foreclosure investment property for a profit

In order to make a profit you need to sell your property. To accomplish this, you will need a qualified real estate agent to work with.

I recommend: Realtors.com and Remax.com will help you find a qualified real estate agent in your target zone.