There's always opportunity that comes out of adversity. For example, Clark bought his latest foreclosure earlier this year and is looking to acquire more in the next 24 months.

One strategy Clark wants to warn you about is purchasing pools to buy foreclosures in bulk as an investment opportunity. These typically haven't worked out great. Clark thought a particular syndicate called Red Brick might hold promise. They were buying in the mid-Atlantic states in blue collar neighborhoods and had a real economy of scale. But The Wall Street Journal reports they've been losing money competing against solo investors.

So be wary of investing in a syndicate to buy properties. Know that it's tougher to make money than indicated in the pitch.

If you want to buy distressed property, you need to be hands-on in all aspects of research, finance and maintenance. Historically, Clark has said that concentrating solely on foreclosures is a mistake and that you should instead look for all manner of "people problem" houses.

However, today is a bit of an exception; traditional foreclosures likely will be the best deal because of the sheer numbers of them taking place and the inability of banks to adequately maintain the properties.

Know that buying foreclosures takes discipline. You must have your money ready and be prepared to cough up a substantial down-payment. Understand that the cost of bringing a house to good condition won't wipe out the bargain.