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Even if you've only got a few hundred dollars to start out your real estate investing career, you can join the ranks of the real estate investing elite in no time investing in the smartest property, the smartest way. Here's how to buy homes in foreclosure without attending the auction, for $200 or less.real estate in pueblo colorado has some nice tips on this.

First, forget buying tax property at the tax sale. You'll never be able to buy homes in foreclosure inexpensively there. The bidding process ensures that (it's designed to). Desirable properties will sell for close to retail value, not to mention you can't inspect property beforehand and have to come up with your entire bid on the spot, in cash, if you do win. Then you'll wait to see if the owner redeems the property, which he usually will. Do this instead:

1. Wait until after tax sale, and use the information you glean from the results guide you to good property. Tax sale companies that buy homes in foreclosure do a lot of research beforehand - use it to your advantage. Homes that got a lot of bids are the ones that are the best deal. Make a list of the good properties.

2. Nine months into the redemption period, see who still hasn't redeemed. If by this point the owner hasn't redeemed, he probably isn't going to - but he still needs to sell that place quick if he's going to avoid losing it to the winning bidder at tax sale.

3. Contact the owner directly, and see what's up. You'll be surprised how willing these people are to tell you exactly what's going on with the property (and other things in their lives!) - and they are very motivated to sell at this point. You can negotiate a very low selling price with these folks. Or, if you're operating on a very limited budget, you can make a deal to buy the deed for $100, and then a percentage of whatever proceeds you are able to get after flipping the property.

You'll find another very profitable subset of tax delinquent owners as well - those that are just letting the property go, without trying to sell it. They don't care about their deeds. By politely asking if they might consider signing the deed over to you so you could see if you could do something with it, you'll pick up deeds for literally nothing this way. Sweeten the deal by offering $100 for their time to sign the paperwork, and you'll be swimming in deeds.

4. Take out your profits! Either pay the taxes off on these properties and keep them (they're almost always free and clear properties by this point in the process), or price the property so far below market value that you'll have investors and buyers knocking down your door to buy. Then you can walk away with thousands in profit for your efforts, without ever having to pay the taxes off.

This method is the only guaranteed way to buy homes in foreclosure for almost no money. The recession has caused a lot more properties to go into foreclosure, so the market's ripe for entry right now.