At first, starting out in real estate investing, you may think that you need to get a higher priced piece of property.  However, that is not the case.  In fact, most investors prefer to use the method of buy low and sell high. 

That is the way they can profit from purchasing property that is considered to be undervalued.  Not only does it save you money, it also can also pay off for you in the end.

There are different reasons why a potential property might sell below its actual value:

·        Foreclosed property

·        Investor wants to get rid of it

·        Property passed down from previous generation(s)

·        Property is in bad shape and need lots of repairs

·        Personal events in family where they can no longer take care of the property

·        Excessive damage from inclement weather or fire

The reasons above are the ones that you hear about the most.  If you can find a potential undervalued property, it can work in your favor.  However, you have to make sure that it will work for you. 

Having undervalued property may not be in every investor’s best interest.  It’s also good to have resources available so that you are able to increase the value on it and eventually come out with a profit.