The sharp rise in the number of foreclosed properties since 2008 is enticing many real estate investors. For, it promises a healthy ROI and attractive profits. However, before jumping into the bandwagon, it is advisable to know what you are actually getting into. A smart investor will take the time to educate himself  of the risks as well as the rewards.

So, before getting involved, ask yourself the following questions:

• Is this your first home ownership experience? Although purchasing foreclosed properties at great bargains may sound like a cake walk, it is not. Foreclosed properties are sold "as-is" and are often found in a distressed condition; demanding extensive repairs before it can be listed on the market for sale.

Repairing, maintaining and holding a property may not be simple. It helps to learn the many lessons of home ownership before stepping into foreclosure investing.

• Are you investing for ROI or will you refurbish the property and call it home? If you are investing in foreclosures in a bid to earn attractive ROI; finance may be a catch. Arranging loans, incurring repairs and rehab costs additional to the purchase price may create a financial burden. Further, foreclosed properties may not see price re-bound in neighborhoods brimming with foreclosures. You may or may not be able to rent or sell the property at the expected profits. Understanding the market and neighborhood is essential before you begin.
•   If you intend to purchase a foreclosed home at a great bargain and transform it into your living space, then the profit margin is a null point.
• How good is your financial situation? Unexpected costs are a reality of foreclosure investing. The  Repair costs might turn out to be more than expected.

For instance: While you expected cosmetic repairs like painting and carpeting, you may come across broken pipes and window panes while undergoing the work.

Moreover, additional costs in the form of unpaid debts, liens and so forth might crop up.

You might have to incur costs for market research, professional estimation and more even before you purchase the property. Foreclosure investing may be difficult with little to no cash on hand to budget the check list of items needing attention. To go ahead smoothly, a healthy financial background is essential.

• Do you have professional assistance? Professional assistance is a must at every step of foreclosure investing. You require a professional for market research at the beginning of the process.  You also need a professional to estimate your repair costs and expected profits.

You will need the assistance of various professionals such as  attorneys, real estate agents and other professionals to guide you through the maze of applicable laws through the investment journey. Atlanta real estate investing is indeed a hot favorite among the real estate investors.Their professional advice is essential and invaluable.

Despite the risks, the rewards are many. The rewards are the reason why 3% Americans  designate themselves as "real estate investors". The smartest way to avoid the pitfalls and setbacks is to employ the expert services of a real estate wholesaler. He will assist you throughout the investment journey and ensure it to be hassle-free and successful. All this for a nominal fee!