If you have never invested in a foreclosure before, it can seem a task as intimidating and daunting as climbing Mount Kilimanjaro... and even if you have invested in real estate already, investing in a foreclosure can seem a road fraught with potential hidden risks.

Well the best way to accomplish a large project or big undertaking is to use an ancient technique discovered by tribesmen: "How do you eat an elephant? One bite at a time" or simply put, break down the project into simple steps.

1. Decide

Take strong inventory of where you are at in life, what kind of life you want to have?, what are you doing that will get you there?, what are you not doing that you need to be doing? 

Once you have established that you need to create a new avenue of income or wealth creation, commit to finding the way that works best for you.

2. Research

Every journey begins with the first step and one of the first couple you will take involves research. Specifically you should research the different types of investment vehicles available, which offer the best sustainable rates of return consistently, which have the best peer groups and supporting specialists, etc,.

3. Decide (again)

So you did some research and feel like a buff of investment vehicles now, do you? Well, it's time to take the initial research you have done and decide again. Decide on which vehicle will work best for you, and specifically by nature of this blog post, real estate investing. 

4. Get Education

Regardless of what vehicle you picked, begin the process of getting a deeper education within that specific niche. In step 2 you did general research, in step 4 it's time to start getting a deeper understanding of your choice so that you begin to understand the range of possibilities, the type of planning needed, the proven strategies that exist.

5. Decide (yup, again)

You thought you were done with deciding by now? Nope. Look making an investment decision shouldn't be a one time thing and with us living in the Information Age, being poorly informed is no excuse. After getting a deeper education in your niche of choice, how does it really work for you? Have you discussed it with a financial planner? Understood the risks with a legal advisor? Met with other successful investors in the niche and developed an appreciation for the mindset and perspective required to be successful yourself?

6. Pick a Team

If you got through step 5 and you are feeling strong about your chosen niche, then it's on to choosing your team players. Who will be the supporting specialists? In the case of foreclosure investing that ranges from a real estate agent, to a carpet subcontractor, to a landscaper. Ask other investors for referrals, contact those referred and ask for more references and then do actually check those references.

7. Commit

Nothing is left at this point but to commit and make your first investment. This is where the culmination of decision making, research, education, and work come together to result in a sum that is greater than the individual parts.

Once you have spent the time of researching, educating yourself, planning, creating a strategy, and building your team, you should feel pretty confident in your investment decision making. 

Have a plan, stick to the plan. Make an investment, modify and tweak whatever can be improved. Rinse and repeat.