Clark has heard a lot of bad press about these real estate investing seminars that try to convince people to buy some piece of property that will make them rich. They get you to come to the “free” seminar at a hotel, and then they try to push a very expensive real estate class on you. The classes usually cost $1,500 to $2,000 and are held over two or three days at another hotel. Don’t get him wrong - Clark loves real estate And he’s bought a number of foreclosures and distressed properties. He believes there is potential for wealth over time. But a lot of these hotel road show presentations make it seem as though you will become a real estate mogul in days. The Washington Post assigned a reporter to go to these seminars for an entire year. She then wrote about the number of people who got rich through these presentations. How many do you think got rich? Zero! Most people told the reporter these seminars were a total waste of time. Others thought they were very uplifting and motivating, but they still didn’t make any money. You’re not going to be able to go to a hotel ballroom for two or three days and become an instant expert in how to invest in real estate. One of the biggest companies running these operations filed for Chapter 7 bankruptcy a few years ago. So, stay away from these rackets.

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What about foreclosures? Even though there has been a big run up in real estate values, foreclosures are still extremely common. Foreclosures are a way for you to acquire a personal piece of property at distressed prices, and often you can find a needle in a haystack. But you have to know how best to buy. The process of foreclosure works differently in different states. But you will hear a lot about people buying property “pre-foreclosure.” This means the buyer swoops in before a home goes through the foreclosure process and buys a house. Stay away from this unless you are a very experienced real estate buyer. You want to buy a property after it’s been foreclosed on. These are called REOs or “real estate owned” foreclosures, and they end up in all kinds of places including HUD, the Department of Veteran’s Affairs, credit unions and even banks. You can also find a real estate agent that specializes in foreclosed real estate. So, check out those resources before buying.