There's no certainty surrounding any investment, and the word "foolproof" should never enter the mind of a prospective investor. But a savvy investor can do well for himself, while at the same time benefiting struggling homeowners, by considering short sales.
The purchase of short sales can be advantageous to an investor in a number of ways. Below-market-value buying prices, competitive selling prices and the easy accessibility to information about the home are a few of the incentives. Plus, the increased popularity of the short sale market can present a wealth of opportunities to an astute investor [source: All About Real Estate Short Sales].
A short sale investor will also have the latitude to work out deals with homeowners, such as renting their property back to them or setting up a workable plan that may give them the chance to rebuild their credit.