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Welcome to the Seventeenth Edition of The Carnival of Smarter Investing! We're back with our first week of August edition of CoSI, so sit back, relax, and enjoy this supersized gathering of featured articles by investors and writers in the areas of business and real estate. And, as always, to submit your article for the next edition, you can do so here.

Welcome to the Sixteenth Edition of The Carnival of Smarter Investing! We're back with our best edition of CoSI yet, so sit back, relax, and enjoy this supersized gathering of featured articles by investors and writers in the areas of business and real estate. And, as always, to submit your article for the next edition, you can do so here.

The foreclosure process begins when a property owner falls behind on mortgage payments. In some cases, the owners of foreclosed properties have been struggling to make payments for some time, and the property may have been neglected due to the inability of the owner to meet basic maintenance expenses. Even in upscale neighborhoods, homes needing serious work are not uncommon. This may be the opportunity an investor is looking for. Houses needing work might fetch bargain prices and repairs can cut into profits, but it may be worth it. If the home is in generally good condition, is in a good location, and the cost of rehabilitating it for resale or rent are reasonable, then consider making an offer.

Last night I listened to a panel of real estate (investors) experts on television. They were discussing the residential foreclosure problems in this country and I was amazed at how, with the exception of one thing, little advise or help was given or touched upon for the distressed homeowner. Even the one thing that I thought could be of some encouragement when someone said to call your bank or lender and see if you can work something out. Although that is a true statement, the truth is that you need to know who to talk to; or better said: you should know who not to talk to.

Government tax foreclosure sales give you access to dozens of homes that have been foreclosed. When an abundance of foreclosure properties exist, such as the case at the present time, great deals can be found at reduced prices. Prices are reduced because there are so many foreclosed homes in the market now needing owners. Also, some of the properties may need a little "fixing up." These are the times to take advantage of tax foreclosed properties owned by the government because you end up getting so much more value for the price you pay.

One of the most important aspects of the American legal system - and a backbone of American commerce - is that the courts treat corporations much like separate persons. The government offers this opportunity as an incentive to those who want to participate in business endeavors and take full advantage of the special legal and financial perks extended to entrepreneurs and other business-minded citizens. Unfortunately, many conduct business but fail to understand the real purpose of incorporation. They think it is a way to feel more official, to secure a brand name, or to appease banks or investment partners. They miss what is perhaps the main goal of incorporation, namely to put distance between an individual and negative legal and financial consequences.

There are millions of homeowners behind on their existing mortgage payments that will result in as many as seven million foreclosures in the next three years. The outcome will be devastating to the individuals, the local community, the lenders, investors and the economy. A great number of those in danger of losing their home were victims of predatory lending or careless investor guidelines. Others suffered hardships such as unemployment, injury, death of a family member and poor budgeting. To complicate matters many have unwittingly been coached into simply walking away with the promise of a short sale, a lease-option and chance to re-enter the market in a few years. But do homeowners and real estate professionals alike really understand the long term ramifications that will impact the homeowner and the local community?

Thanks to the explosion of the real estate market a few years ago and the amount of people who are now defaulting on their home loans, the real estate foreclosure market is booming. Lenders granted loans for people with border line credit on the assumption that if they did have to repossess the house it would be worth far more than the mortgage. The lender planned on selling the repossessed property quickly and at a profit. That didn't happen.

Welcome to the Fifteenth Edition of The Carnival of Smarter Investing! We're back with our fifteenth edition of CoSI, so sit back, relax, and enjoy this supersized gathering of featured articles by investors and writers in the areas of business and real estate. And, as always, to submit your article for next week’s edition, you can do so here.

It has been acknowledged that there is indeed an economic downturn occurring or impending in many regions. We are also seeing increasing volatility in the equity and financial markets. Added to this, is the inflationary pressures that are bearing down on investors. Given this situation, many investors are turning to safer investments. In this context, property or real estate is beginning to get much more attention from investors seeking to cushion the effects of inflation. In countries or locations where property prices have leveled off or fallen and the number of foreclosures is rising, investors have a great opportunity to invest their money in a sector that offers better returns.

Short sales are becoming more and more popular as more and more investors learn this creative technique which can create huge profits. A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount. For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $300,000. You write an offer to the lender for $220,000, which is accepted as full payment for the loan. This is a short sale. Why are they willing to take such a discount? Several reasons. First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it. Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount beforehand and be finished with the headache of it all.

Imagine if you were able to purchase your dream home at a fraction of its market value. The good news is, this is no longer a dream. If you want to get the best deals in the real estate market, the most popular option today is purchasing foreclosed properties. These properties are not only of high quality, they are even sold at less than their market value. This is because these properties are owned by the bank because the homeowner failed to pay for his mortgage. So in order to regain what has been owed to the bank, the bank sells the property at a cheap price, giving buyers a great opportunity to purchase real estate.

When you buy a home with a mortgage you promise to repay the loan and back up that promise in a contract by offering your property as collateral. Default on the loan and the lender can legally reclaim the property in order to offset losses that result from your non-payment. Most Americans think of foreclosure as an auction on the courthouse steps, but in reality the foreclosure process begins long before that happens. The auction is really the last event in a long line of legal steps that are all part of the foreclosure.

Welcome to the Fourteenth Edition of The Carnival of Smarter Investing! CoSI has been sporadic as of late, and we apologize, but there's good reason (we promise). The boozwatt staff is still diligently working away on the exciting new site feature rollout planned for Spring of 2008 here at boozwatt.com. But we're back at the moment, with our fourteenth edition of CoSI, so sit back, relax, and enjoy this supersized gathering of featured articles by investors and writers in the areas of business and real estate. And, as always, to submit your article for next week’s edition, you can do so here.

Rent to own property investments and lease purchase options have inherent risk factors that cannot be removed. These, as with risk factors involved in any type of investment scenario, are just the nature of the beast. However, in order for a real estate investor to be able to profit from such a venture, these risk factors must be acknowledged and addressed to minimize potential loss. What are the general risk factors in rent to own and lease purchase options?