There are several new real estate programs on television these days that depict newbie investors purchasing dilapidated homes, making repairs and selling them for staggering profits all in 30 minutes.

Put simply, it’s not easy or as fast as it looks.

Because of the editing process, these shows rarely convey all the hard work, knowledge and dedication it truly takes to pull off such a feat.

Instead, these shows often make flipping houses appear to be clean and simple. Here is a general example of a “get rich quick”

In our last post, we talked about the different foreclosure numbers that some companies have been reporting.

Naturally, people with a stake in the real estate market need straight answers. Because making investment decisions on bad — or inaccurate — data can mean the difference between success and failure.

So, let’s refer to a recent article from Dow Jones, which according to its Web site publishes the world’s most vital business and financial news and information, for clarification:

The divergent results can be explained by the way they count foreclosed properties.

RealtyTrac data includes properties in the early stages of a foreclosure proceeding, even before the bank actually owns those properties.

A spokesman for Foreclosure.com, on the other hand, said that the company only reports properties officially foreclosed and in the hands of the banks.

That is correct.

Foreclosure.com and RealtyTrac report on different pieces of information, which is an extremely important difference between the companies.

Why?

Because it directly affects the accuracy of the data that each collects. In short, it is very difficult to determine how many properties in the early stages of foreclosure actually exist across the country.

That is the primary reason Foreclosure.com chooses not to report on properties in “some stage of the foreclosure process.”

What’s more, properties in preforeclosure very often don’t make it to foreclosure. Distressed homeowners have many options before losing a home to the bank such as refinancing the loan or selling the property.

Finally, the nature of how these properties are made available to the public — generally by county record keeping and auction brokers — make it very difficult to track all of them.

While we track and offer information on a large number of preforeclosures, it would be inappropriate and irresponsible to lump this type of information with foreclosures and package it as reliable market data.

Foreclosure.com makes this commitment to all of its subscribers and the general public. We take great pains to ensure that our data is comprehensive, accurate and up-to-date. And we will only report data to the public that we are confident is an accurate representation of the market.

We do hope, in the future, to be able to make this information public. But we will only make the information available once we know it is accurate.

Reports about the number of defaults, preforeclosures and foreclosures received a tremendous amount of media coverage this week. Generally, multiple sources of information are positive, helping confirm the statistics and providing different perspectives on a topic.

But, this week was different.

This past Tuesday, Foreclosure.com released its monthly data analysis for August 2006, which revealed a slight decline in the number of foreclosures across the United States. On the same day, RealtyTrac published a report that showed a 24 percent increase in the number of foreclosures.

We knew this would happen and we are glad it did.

That’s because these contradicting statements are dangerous on many levels. And now that several media outlets have publicly identified the problem and called attention to it in their stories, it all but assures that the investors and potential homebuyers who use Foreclosure.com are indeed receiving the best information.

Here’s a snip from an article today on Inman News (registration required):

RealtyTrac shouted this week that the number of homes in any stage of foreclosure had jumped 24 percent from July and 53 percent from last year.

Hang on to your door handle.

Foreclosure.com, tracking only completed foreclosures, says foreclosures fell 6.7 percent in August, only 7.3 percent higher than last year.

Who is right – or most descriptive?

The Mortgage Bankers Association’s study of 42 million loans confirms Foreclosure.com’s picture: current-quarter delinquent payments and foreclosures are unchanged from last spring.

Naturally, it is nice when an independent third-party source validates the fact that Foreclosure.com reports more accurate data; especially, when it is an authoritative source like the Mortgage Bankers Association.

However, we can’t say that we are surprised. Providing our customers and business partners with the most accurate foreclosure data is what differentiates Foreclosure.com from the competition.

It is something that we work hard at and take great pride in. And, we are thrilled to see that more and more high-profile media outlets and respected real estate organizations are taking note.

We will go into more detail in our next post about the specific reasons our data is the most accurate representation of the national foreclosure market.

Stay tuned.

For the last few months, we have seen countless stories in the newspaper, on television and online that the national housing market bubble is about to burst.

We’re not going to share our opinion on the subject right now because there is too much speculation floating around recently. Instead, we want to discuss the real estate investment market, which is heating up thanks to incredible opportunities cropping up all across the United States.

It’s safe to say that, in general, home sales have slowed and prices have leveled off in most areas compared to the hectic pace of the last few years. Interest rates on mortgages, too, are at historically low levels. And, the inventory of foreclosures, preforeclosures, bankruptcies and tax liens is growing at a consistent rate across the board.

What does all this mean?

It means that right now is a great time for potential homebuyers and investors to start making offers on properties. Indeed, today’s savvy real estate investor has plenty of opportunities to capitalize on good deals.

Let’s face it, the days of multiple offers and contracts closing above list prices are a not-so-distant memory. Even sellers in the general market have become more realistic and motivated as the number of homes for sale has increased.

With more properties from which to choose, investors must spend a little more time sifting through all the deals to make sure they are buying at the right price. But with fewer investors competing for a share of the growing real estate pie, the outlook for making money has never looked more promising.

Flipping preconstruction condominiums and converting apartment complexes into condos may be on the back burner for a while to come. However, buying a distressed property at the right price, repairing and improving it and reselling for a profit is just beginning to simmer.

Forget about all the talk about the bubble bursting. We’re entering an exciting time that is ripe with tremendous deals and unbelievable real estate bargains. Whether or not this new reality of the housing market is a boom or a bust can only be decided by you.

But, take advantage of this opportunity to make money by investing in real estate and Boom

In a press release today, we released our national foreclosure data for August 2006. This past month’s data showed that while the number of foreclosures nationwide remains fairly balanced month-to-month, new foreclosures are up 7.3 percent from a year ago.

Key highlights of the national foreclosure activity in the month of August include:

• A total of 26,255 new residential foreclosures were reported

• The active inventory of foreclosures available for sale was 85,467

• Thirty two percent of the active foreclosure inventory was sold. This is down slightly from July (35 percent), but remains higher that the average from the first two quarters of 2006 (30 percent)

These numbers clearly illustrate that there are many opportunities to purchase foreclosed homes across the nation, as well as the fact that the market for purchasing foreclosed homes is very hot. And, with a 32 percent turnover of properties each month, the ability for prospective buyers to locate properties as soon as they are available — whether in their own backyards or across the country — becomes increasingly important.

For those looking to invest in foreclosed homes, our foreclosure data is also beginning to reveal some trends that warrant consideration when identifying potential areas to search for the best deals. For example, new foreclosures are rising quickly in the West region. From July to August, new foreclosures increased 155 percent in Arizona; 32 percent in California; and 10 percent in New Mexico.

Foreclosure.com President and CEO, Brad Gesien, commented that:

“For California homeowners, the worst could be yet to come. Home prices there are coming down from their historically high rates, buyers are drying up, and it has become difficult lately to sell a home to avoid foreclosure in the Golden State. Because of this situation, we anticipate significant increases in California’s foreclosure rates if the current housing situation continues as more and more preforeclosures convert to foreclosures.