When it comes to real estate, the decision to invest in foreclosure properties is always a sound choice, even under the best market conditions. However, foreclosure properties may currently be an even better choice for profitable real estate investment than ever before. The reason is the rising foreclosure rates.

It all comes down to supply and demand. The lower foreclosure rates are, the quicker real estate investors need to be in order to snap up the most profitable properties before they lose them to competing investors. On the other hand, a growing foreclosure rate means that there are more properties to choose from, more to invest in, and more great properties to go around. There is less competition among investors, which means more profit with less headaches and stress for those investing in foreclosure properties.

There are three ways to invest in these properties:

1. Finding a list of properties that are in pre-foreclosure phase (those in default with three or more missed payments) and approaching the owner of each property before the foreclosure process begins. This is a method that is chosen by real estate investors because it not only gives them first dibs on the property, but also allows them to help save a family from the foreclosure process.

2. Cutting a deal with the lending bank after a property has been put into foreclosure, but before it is put on the auction block. This is a method that is chosen by investors because they want to get the property without direct competition in an auction setting, but also feel more comfortable dealing with the bank instead of the person who owned the property.

3. Waiting until properties are up for sale via bank auction and going up against competing investors and others who are looking to get a great deal on a good property. This is a method chosen by real estate investors because it assures them the lowest price possible - if they aren't outbid.

Over the rest of the year, and possibly well into next, the foreclosure real estate market will continue to increase in these types of properties as people from all walks of life and all income levels continue to lose their home to the foreclosure process. This will no doubt pave the way for aspiring real estate investors to get into the game with little risk, as properties that are both cheap and highly profitable become more and more common.