A report from the Washington Post. “The Post’s Mary Ellen Slayter recently spoke with Ralph R. Roberts, co-author of ‘Foreclosure Investing for Dummies’ and a longtime real estate agent and investor in Michigan. An edited transcript of the conversation follows.”

“Q: Who is a good candidate for investing in foreclosures? A: It’s right for someone with a secure job, solid cash flow, someone who wants to make some money on the side. If you’re married, your spouse needs to be on board, too. I like for people to use their own money. But if you don’t have enough cash but you’re willing to do the work, find a partner. My first ‘bank’ was my grandmother. I didn’t pay her interest, but every time I made a deal, I took her out to lunch. If you really want to do it, you can always find sources of investment capital.”

“And who’s not a good candidate? A: Anyone who thinks this is easy money. It’s a myth, perpetuated by all these late-night TV gurus, that you can get rich quick doing this.”

“Q:How does it work in declining markets, which are the ones that are most likely to have lots of foreclosures?”

“A: You account for this in the price you pay for the property. You make your profit when you buy, after all; you realize it when you sell. There’s a formula in the book that helps you adjust for a soft or flat market. My wife once pointed out to me that no matter what the economy looks like, people are still going to buy and sell houses. They’re still going to get married and start families. Even if 10 percent of workers are laid off, the other 90 percent are still working. They will still need housing.”

“Q: Describe the perfect property for the foreclosure investor. A: It should be in a good neighborhood. And you should be able to see clearly what you need to do to fix it up and sell it.”

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