Buying properties at discount prices is the surest and quickest way to make money in real estate. Individuals who are looking for a home can get a significant amount of equity up front with foreclosures. Of course, there are no guarantees with any investment, but all across the country, people earn almost immediate income by "flipping" foreclosure properties for big profits. And many landlords are able to buy and rent foreclosures, producing positive cash flow and long term wealth accumulation.

When interest rates rise, property owners with variable interest rates often become over extended, which provides opportunities for foreclosure investors to obtain properties at reduced prices. The most common reason for foreclosure is the dissolution of a marriage. The next most common reason for is a failed business venture. Foreclosure investing can reap favorable returns.